The Post Office is set to announce a £1.75billion banking deal with major British lenders next Wednesday, according to sources familiar with the matter.
The five-year agreement will secure the future of banking services across Britain's largest retail network amid concerns about branch closures.
Under this new banking framework, an additional £500million will be awarded to the Government-owned company.
The current deal is due to expire at the end of this year, making this new long-term arrangement a significant development for the Post Office's financial stability.
The Post Office is expected to confirm a major banking deal next week
POST OFFICEBanking industry sources revealed to Sky News that the deal would be worth approximately £350m annually to the Post Office, up from the existing £250m-a-year arrangement.
In exchange for these additional payments, the Post Office will make various commitments to improve services for bank customers who use its branches.
The new framework comes as the Post Office seeks to enhance its offering while securing vital funding. Major banks participating in the arrangement include Barclays, HSBC, Lloyds Banking Group, NatWest Group and Santander UK.
Under the Banking Framework Agreement, customers of 30 banks and building societies will be able to access services at the Post Office's 11,500 branches nationwide.
Multiple banks are expected to sign a deal with the Post Office
PAThese services include essential banking functions such as depositing and withdrawing cash over the counter.
The extensive network provides crucial access points for banking services, particularly in communities where traditional bank branches have disappeared.
This service is particularly valuable for those who still rely on physical cash, especially after more than 6,000 bank branches have closed across Britain over the past decade.
In 2023, the Post Office handled significant cash transactions, with more than £10bn withdrawn over the counter.
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The funding boost will go towards improving the Post Office's current services
POST OFFICENotably £29bn in cash was deposited over the counter during the same period.
The timing of this new deal is critical for the Post Office, which is currently trying to secure government funding to increase pay for thousands of sub-postmasters.
GB News has contacted the Post Office for comment.
