Subpostmasters to treble their payments for banking cash

Subpostmasters will have their payments for banking cash deposits nearly trebled from 1 October.

The announcement by Post Office banking director Martin Kearsley was made at the National Federation of SubPostmasters Conference at Stratford Upon Avon on 15 April.

Mains branches will now receive £1 per £1,000 banked (up from 37p), and local branches will receive and 87p per £1,000 (up from 24p).

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The NFSP said the increase showed its negotiations with the Post Office had “paid off.” The rise for retailers partnered with the Post Office comes as an NFSP survey of 1,000 subpostmasters showed that 61% were worse off than when they partnered with the Post Office, with three quarters claiming to make less than the National Living Wage.

A Post Office spokesperson told RN the increases were: “In recognition of the increased work our Postmasters and colleagues carry out on behalf of all the main High St banks in response to continued bank branch closures. The increases also help support our network as we become the central place in every community where cash services are still available to consumers and businesses alike.”

The Post Office added that it would “continue to review remuneration” for subpostmasters.

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Following criticism of the levels paid to retailers from the NFSP, subpostmasters and politicians in February, Kearsly had admitted that its banking services were “not profitable” for the Post Office, and said the company was working with banks to agree a better deal.

High street banks typically charge between £6-7 for small businesses to bank £1,000 in cash, though bank branch closures are increasingly driving these small business customers into Post Office to deposit their money.

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