Source · Select Committees · Scottish Affairs Committee
Recommendation 13
13
Paragraph: 79
Despite the efforts taken by the banking industry and the Post Office, the current cash...
Conclusion
Despite the efforts taken by the banking industry and the Post Office, the current cash infrastructure is fragile, and the Banking Framework Agreement is ultimately short-term and voluntary. A decision by any of the major banks to withdraw from Access to cash in Scotland 29 the agreement would have far-reaching consequences for millions of people and businesses that rely on cash. An issue of such importance should not be left to voluntary agreements.
Paragraph Reference:
79
Government Response
Acknowledged
HM Government
Acknowledged
The Government remains fully supportive of the Banking Framework agreement, which allows 99% of personal banking and 95% of business customers to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post Office branches across the UK. In January 2022, ahead of the conclusion of the current Banking Framework agreement at the end of this year, the Post Office announced that a new agreement had been agreed with the sector. It will begin in January 2023 and run until December 2025. The Post Office is also working with the financial seNices sector to provide shared banking solutions where they are recommended by LINK, in its capacity as a coordinating body, as part of work undertaken through the Cash Action Group to develop initiatives for providing shared seNices. Although Government-owned, the Post Office is an independent commercial organisation. The Post Office Banking Framework and bank hubs initiative are commercial arrangements between the participating banks and the Post Office. As such, I hope you can appreciate that it is not for Government to negotiate the details of commercial contracts such as the Banking Framework. However, the Government recognises the critical role that Post Offices play in communities, and we have been clear that the Post Office should be a valuable social and economic asset for communities and businesses for years to come. That is why the Government has provided over £2.5 billion in funding to support the Post Office network over the past ten years. In addition, Government is providing a further £335 million for the Post Office over the next three years which includes a £50 million annual subsidy to ensure the viability of our important rural and community branches.