Neil Brocklehurst has been appointed the new CEO of the Post Office, having led the business as acting chief executive since September.
On his first day in post, Brocklehurst announced a new banking deal for postmasters, which will extend essential cash services in branches nationwide from January 2026 to December 2030.
Known as ‘The Banking Framework’, the new agreement will enable customers of 30 banks and building societies to use their local Post Office to withdraw and deposit cash, make balance queries and deposit cheques. This would provide a vital service to communities, the Post Office said.
It follows recent research commissioned by the Post Office, revealing that 89% of respondents believed it was important to maintain access to cash in the UK, while 84% said losing access to cash would be inconvenient.
It also found 53% used cash at least once a week for everyday transactions, while 15% of respondents noted that their cash usage had increased over the past year.
The new five-year deal marks the longest time the framework has been contractually extended, having previously been implemented in two-year stints since it was established in 2017. The Post Office said this gave “longer-term security” to postmasters and their customers.
The Post Office said its new partnership with banks and building societies was “integral” to delivering the ‘New Deal for Postmasters’ that was detailed in its Transformation Plan in November. It aims to strengthens postmasters voice in the day-to-day running of the business and increases the remuneration they receive.
As part of the ‘Banking Framework’, The Post Office is improving the remuneration postmasters receive for handling cash transactions and is also making a major investment in the automation of cash services in-branch to reduce postmasters’ cost-to-serve.
“Post Office is an organisation that needs change, and I am proud to have been appointed the new CEO with a mission to deliver this,” said Brocklehurst. “I am determined to deliver a ‘New Deal for Postmasters’ that drives up postmasters’ incomes and strengthens their voice in the day-to-day running of the business.
“This new, five-year agreement with banks and building societies ensures our branches remain vital hubs for cash access and provides certainty for businesses and individuals nationwide when it comes to their everyday banking. This agreement also means that we will be able to increase the income postmasters receive for delivering banking services, a key pillar of our transformation plans.
“We’ve worked hard to secure this new agreement through reinforcing just how important the framework is to communities across the UK and why Post Office, and our postmasters, are the best fit to continue to provide cash services, securing a commitment from the banks that is substantially longer than those previously agreed.”
Post Office minister Gareth Thomas said: “Neil Brocklehurst has provided stability and strong leadership to the Post Office over the last year and I’m looking forward to working with him to deliver for Post Office customers up and down the country.
“This includes those who struggle with travelling to a bank to access basic services, where the local post office is a lifeline.
“As part of Post Office’s New Deal for Postmasters and Transformation Plan, this new Banking Framework 4 deal will provide a better commercial offer for postmasters over the next five years while improving cash services for the people and businesses that need it most.”
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