Lloyds Banking Group has ended its agreement. Customers can no longer deposit cheques at Post Office counters. This change started in January 2026. It ends a long partnership and shows the bank’s shift to a digital-first strategy.
The decision affects around 28 million customers. This includes those from Lloyds, Halifax, and Bank of Scotland. Customers can still withdraw cash and check balances at the Post Office. However, they now need to find another place to process paper cheques.
Lloyds defended the move by pointing to a big drop in physical cheque use at third-party locations. According to a bank spokesperson, the vast majority of customers have already transitioned to the Lloyds Mobile Banking app, which allows users to scan and deposit cheques up to £10,000 (for personal accounts) and £20,000 (for business accounts) using a smartphone camera.
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This service reduction coincides with an accelerated branch closure programme. On February 11, 2026, Lloyds Banking Group announced it would shutter an additional 95 branches between May 2026 and March 2027. This follows 49 closures planned earlier this year. Now, the group has just 610 physical locations nationwide.
For many in rural areas, losing Post Office cheque services and closing local branches creates a “banking desert.” The bank mentions the rollout of Banking Hubs, which are shared spaces managed by Cash Access UK. However, there are only 15 new locations to replace nearly 100 closed branches.
With the Post Office option off the table, Lloyds customers have four primary ways to deposit cheques:
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