Post Office strikes deal to safeguard access to cash for small businesses

Small businesses that rely on both cash and card payments will have guaranteed access to cash services for the next five years, thanks to a longer-term agreement between the Post Office and major UK banks.

The new deal, running from January 2026 to December 2030, will ensure that millions of small businesses can continue to withdraw and deposit cash at Post Office branches.

With widespread bank closures forcing many customers towards online banking, the Post Office has become an essential resource for businesses that still depend on cash, such as local pubs and cafés.

Today, newly appointed Post Office CEO Neil Brocklehurst said the service renewal “ensures our branches remain vital hubs for cash access and provides certainty for businesses and individuals nationwide when it comes to their everyday banking.”

Brocklehurst is seeking to rebuild trust after the Horizon IT scandal — which led to the wrongful conviction of hundreds of sub-postmasters — left the reputation of its former leadership in tatters and prompted widespread public and political outrage.

Are post offices the new banks?

As the UK moves steadily toward becoming a cashless society, with digital and contactless payments dominating everyday transactions, access to physical cash has become limited. 

Bank branch closures and reduced ATM networks have made it harder for small businesses to handle cash. But many, such as local coffee shops, takeaways, or pubs, may withdraw cash for tills or to pay their employees cash in hand. They may also deposit notes and coins at post office branches if they receive cash payments from customers.

The issue is especially pronounced for businesses based in rural or coastal areas, such as B&Bs, where no nearby bank branch exists. 

These types of small firms have come to rely on the Post Office for their daily or weekly banking. The UK’s 11,500 Post Office branches are often open longer than traditional banks, and around 3,000 locations are open on weekends.

As a result, Post Office data shows that the total volume of business and personal deposits has increased every year between 2020 and the end of 2024. Last month, business cash deposits specifically totalled £1.22bn, up 7.8% year-on-year.

Which banks are included in the agreement?

Under the terms of the new deal, SMEs that have business accounts at the below banks and building societies can continue to access cash at post offices until at least 2030:

• HSBC  
• First Direct
• Lloyds Bank
• Halifax 
• Bank of Scotland
• Barclays
• NatWest 
• Royal Bank of Scotland
• Ulster Bank
• Coutts Bank
• Santander 
• Cahoot
• Nationwide
• Virgin Money (includes former Yorkshire Bank and Clydesdale Bank)
• Monzo
• Starling
• Metro Bank
• The Co-operative Bank
• Smile
• TSB
• Bank of Ireland
• Allied Irish Bank 
• AIB GB 
• AIB NI
• Danske Bank
• Handelsbanken
• Monese 
• CAF Bank 
• Charities Aid Foundation
• Unity Trust

As part of the agreement, individuals who prefer to pay with cash will also have guaranteed access to it; and research suggests many of them will do so to shop with small businesses.

According to a recent Post Office survey, 36% of respondents who have used cash in the past year did so most often in small local shops or markets.

The deal also follows wider efforts by the UK government and financial regulators to safeguard access to cash across the country. 

Under the Financial Services and Markets Act 2023, the Financial Conduct Authority (FCA) was given new powers to ensure that banks continue to provide reasonable access to cash services, particularly in rural and vulnerable communities.