The deal reinforces the Post Office’s central role in maintaining financial inclusion, building upon the 200 hubs already in operation. The partnership is a component of the UK Government’s strategy to have 350 functioning Banking Hubs by the end of the current Parliament.

Designed to fill the void left by closing bank branches, these hubs provide communities with essential face-to-face services. Customers and local businesses can access cash withdrawals, deposits, cheque processing, and bill payments. In addition to the counter services provided by postmasters, community bankers from participating financial institutions attend the hubs on a rotational basis to offer specialist support for more complex queries.

This contract coincides with the launch of the Post Office’s new Banking Framework agreement, which takes effect on 1 January. In collaboration with 30 of the UK’s largest banks and building societies, this wider framework ensures that 99% of UK banking customers can transact via the Post Office’s vast network of 11,500 branches.

Ross Borkett, financial services director at the Post Office, said: “We believe that there’s scope for many more Banking Hubs to be opened and operated by our highly experienced postmasters who already provide access to cash to customers every day in their post office branches.

“This new Banking Hub agreement, alongside our new wider agreement with the banks, both of which come into effect on 1st January, safeguards the UK’s access to cash for the next five years.”