Post Office Strikes Landmark Deal to Secure Cash Access for UK Small Businesses

Small businesses across the UK will continue to enjoy secure access to cash services, thanks to a newly extended partnership between the Post Office and the country’s major banks.

The agreement, which will run from January 2026 to December 2030, safeguards over-the-counter cash services for thousands of small firms that rely on a mix of card and cash payments. This long-term commitment ensures businesses will still be able to deposit and withdraw money at Post Office counters nationwide.

As traditional bank branches close at an accelerating pace, small enterprises — from independent cafés to village pubs — have turned increasingly to the Post Office for their everyday banking needs. For many, especially those in rural or coastal locations, the local Post Office has become the last remaining physical banking outlet.

A Lifeline for the High Street

Newly appointed Post Office Chief Executive Neil Brocklehurst welcomed the move, stating that the deal “secures the future of our branches as vital cash hubs and offers reassurance to businesses and consumers alike that everyday banking remains within reach.”

This announcement comes at a critical time as the Post Office continues to rebuild its reputation following the Horizon IT scandal, which led to the wrongful prosecution of hundreds of sub-postmasters and provoked widespread outrage.

Are Post Offices the New Local Bank?

In an age where digital payments are rapidly becoming the norm, physical access to cash is diminishing — especially for small firms. Bank closures and a shrinking ATM network have made it increasingly difficult for businesses to access banking services that support cash transactions.

For shops, takeaways, B&Bs, and other local enterprises, the ability to withdraw float money or deposit daily takings is essential. Post Office branches provide a convenient alternative, often offering extended opening hours, with around 3,000 locations operating over weekends.

Unsurprisingly, demand for these services is growing. According to Post Office data, both business and personal cash deposits have risen each year from 2020 through to the end of 2024. In the most recent month alone, business deposits hit £1.22 billion, marking a 7.8% year-on-year increase.

Which Banks Are Taking Part?

The agreement includes access for business account holders at a wide range of high street banks, challenger banks, and building societies, including:

• HSBC

• Barclays

• Lloyds Bank

• NatWest

• Santander

• Metro Bank

• TSB

• Virgin Money

• Nationwide

• Monzo

• Starling

• The Co-operative Bank, and many more.

These arrangements also apply to individuals, many of whom still prefer to use cash for budgeting purposes or shopping locally. A recent Post Office survey revealed that 36% of cash users spent it primarily at local shops or markets.

Regulatory Backing for Cash Services

The deal aligns with broader efforts by the UK Government and regulators to maintain fair access to cash. The Financial Services and Markets Act 2023 has empowered the Financial Conduct Authority (FCA) to oversee this area more closely, ensuring that communities — particularly those in remote or underserved regions — are not left behind in the shift to a digital economy.

Final Thoughts from Zyla

At Zyla Accountants, we understand how critical access to cash remains for many of our clients — especially those in hospitality, retail, and trades. This agreement is a welcome step that will offer stability and flexibility to small businesses navigating a changing financial landscape.

We’ll continue to monitor developments and advise our clients on how best to adapt their banking and cash-handling processes over the coming years.