Neil Brocklehurst has been appointed by the Department for Business and Trade as CEO of the Post Office and announced a new banking deal for postmasters on his first day in the job.
The new deal extends essential cash services in branches to 2030, “securing the critical role of postmasters up and down the country in providing face to face services to their communities,” it says.
Known as Banking Framework 4, the deal is a core pillar of Post Office’s New Deal for Postmasters and the CEO’s Transformation Plan that will strengthen and support postmasters’ role in communities.
The agreement has been made with 30 banks and building societies and “reinforces Post Office’s commitment to keeping cash accessible in local communities.”
Brocklehurst joined the Post Office in June 2024 and has led the business as acting CEO since September and has already made significant changes. To coincide with his first day as CEO, he will today (30 April) lead a first joint postmaster, strategic partner and Post Office colleague Town Hall meeting, setting out the benefits of this new deal.
As part of the new 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 and to give customers the experience that they have come to expect from modern retailers.
Commenting on the development, Brocklehurst, said: “The Post Office is an organisation that needs change, and I’m proud to have been appointed the new CEO with a mission to deliver this. I’m 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 we will be able to increase the income postmasters receive for delivering banking services, a key pillar of our transformation plans.”
Post Office minister, Gareth Thomas, added: “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.”
The new banking deal follows recent research commissioned by Post Office, revealing that 89% of respondents believe it’s important to maintain access to cash in the UK and that over half (53%) use cash at least once a week for everyday transactions. What’s more, 15% of respondents note their cash usage has increased over the last year.
Many people also rely on cash when shopping with small businesses, with over a third (36%) of respondents who have used cash in the past year stating they have done so most frequently in small local shops or markets.
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