Post Office (PO) retailers have warned banks’ decisions to scrap cheque cashing in PO branches will harm ‘the most vulnerable members of our society’,
Letters from Lloyds Group banks (Lloyds, Halifax and Bank of Scotland) sent to customers recently, and seen by Better Retailing confirmed the PO will ‘stop accepting personalised paying in slips’ on 2 June, followed by customers no longer being able to pay cheques into accounts in PO branches after 31 December.
While the bank has claimed: “Very few customers are choosing to deposit cheques in at the Post Office,” PO retailers believe the change will leave some customers with no means of processing cheques.
A letter from Sheffield PO retailer and Voice of the Postmaster chair Richard Trinder stated: “The planned decision to eliminate cheque deposits over the counter will have a significant impact on many of my customers, particularly those who are digitally excluded. Many of these individuals do not possess the skills, confidence, or resources to engage with online banking or mobile apps, which leaves them reliant on the in-person services offered by the Post Office.
“It is deeply frustrating that a decision has been made to strip this essential service away from some of the most vulnerable members of society, many of whom already face challenges accessing modern banking. For a significant portion of our community, the Post Office is their lifeline to managing their financial affairs, especially in cases where government cheques or payments from HMRC are concerned.
“I urge you, to use your influence to engage with the Lloyds Banking group and demand they reconsider this decision. The removal of this service will only serve to further isolate elderly and the vulnerable including the digitally excluded.”
A statement from PO to partnered stores said Lloyds will be advising customers to submit cheques via post or banking app. The statement read: “If a customer wishes to talk about the removal of this service please refer them back to their bank, this is not a Post Office decision.”
“Whilst this is disappointing, it represents a very small amount of the cheque deposit volumes. We will continue to work with Lloyds to ensure we are kept abreast of any future customer communications that refer to banking services delivered through the Post Office and that our branches can continue to offer as many services as possible.”
NFSP warns other banks might follow Lloyds’ lead
In another letter, the National Federation of Subpostmasters (NFSP) expressed concern ‘the remaining banks will follow suit… leaving very few options for customers to pay in a cheque in person’.
The NFSP letter continued: ”Postmasters across the country have helped to keep banking services on the high street, in rural locations, and in all areas where the last bank branch has closed. The banks have saved billions closing branches, knowing they can rely on post offices to offer banking services. Now it seems the banks are set to dismantle what we can offer, and with it the public’s right to accessible banking services.”
The move by Lloyds coincides with it announcing plans to axe a further 135 branches between May 2025 and March 2026, forcing many of those newly unable to cash checks in a PO having to travel even further to their nearest bank branch. The PO is also currently attempting to negotiate a new and more lucrative banking agreement with the major banks to begin at the start of 2026. PO advised stores this week “We will be in a position to update you all on Banking Framework 4 in the coming weeks.”
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