The Business, Energy and Industrial Strategy (BEIS) Committee was due to hear evidence from Barclays bosses on Friday 25th, but the bank reversed its decision before the appearance.
Committee chair Rachel Reeves had called the move ‘petty penny-pinching’. In a statement, the bank said: ‘Ultimately we have been persuaded to rethink our proposals by the argument that our full participation in the Post Office Banking Framework is crucial at this point to the viability of the Post Office network.’
Barclays will now maintain a full service proposition in the Post Office, including cash withdrawals using a debit card, for the next three years.
Gareth Shaw, head of money at consumer group Which?, said: ‘Barclays’ decision to bow to public pressure and reverse this move will be a massive relief for its customers, who have seen almost 500 high street branches close over the last four years.
The industry cannot be relied on to prevent people being stripped of access to cash and vital financial services, so the Government must urgently intervene with legislation that protects cash for as long as it is needed.’
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