The Post Office has announced a new Banking Framework agreement with 28 UK banks, ensuring millions of customers continue to have national, free access to everyday banking services, while making sure postmasters are fairly renunerated.

Last year Post Office branches handled over 130 million transactions on behalf of UK banks. With over 11,500 branches the Post Office is ideally positioned to provide everyday banking services for individuals and businesses.

Millions of customers of UK banks rely on these vital services – more than a quarter of people (28 percent) have withdrawn cash at their local Post Office in the last year (YouGov).

Post Office branches provide vital services to people living in more rural or urban deprived areas such as cash withdrawals, bill payments and postal services all under one roof. With more than half of people (52 per cent) having visited cash only retailers in the last year, easy access to cash is key for both retailers and consumers (YouGov).

Martin Kearsley, Director of Banking Services, Post Office said: “We have been working with the banks to ensure we have the right service levels across our network to meet their customers’ needs and to ensure our branches receive a fair remuneration for providing these vital services.”

Recent Post Office research showed that over four in five people (85 per cent) are pleased that their bank offers the convenience of accessing everyday banking services at Post Office branches.

Martin Kearsley continued: “We’re delighted to have signed this agreement with almost every UK bank, ensuring that their customers, no matter what their personal circumstances or location may be, can have convenient and secure access to everyday banking services such as cash withdrawals and deposits.  With 93 per cent of people living within a mile of a Post Office our branches are ideally situated to provide easy access to vital banking services.”

Minister for Postal Affairs, Kelly Tolhurst, said: “Post Offices provide a vital public service to local communities up and down the country including by offering banking services. I am delighted that banks have signed this new agreement, enabling the Post Office to continue positively impacting people’s lives and supporting SMEs, as well as ensuring post masters’ pay is fair and reflective of the essential service they provide.”