The Government has
today published a policy statement giving further detail on its
plans to secure the long-term future of the Post Office.
Minister for Postal Affairs Edward Davey said:
“We’re determined to turn the Post Office network around and end
the years of decline. The Post Office is a tremendous national
asset. It will not be for sale and there will be no programme of
closures.
“To underline our commitment we have announced £1.34 billion of
funding over the next four years. The money will put the Post
Office on a stable financial footing. It will help modernise the
network and make it even more appealing to customers.
“New Government and financial services will also attract new
customers through the door. I’m particularly pleased to announce
an agreement between Post Office Ltd and Royal Bank of Scotland
(RBS). This will give RBS and NatWest customers access to their
current and business accounts through the Post Office. This will
mean that almost 80% of current accounts will be accessible at
post offices.
“Our long-term goal is to convert the Post Office into a mutual
structure, for example like the Co-operative Group, giving
employees, sub postmasters and communities a much greater say in
how the company is run. Our programme means the network is on the
cusp of an exciting new era.”
Paula Vennells, Managing Director of Post Office Ltd, said:
“We warmly welcome the Government’s significant level of support
and commitment, which will allow us to invest in the network and
in our service to customers, and help us develop new business.”
Last week the Government announced a £1.34 billion funding
package over the next four years to maintain and modernise the
Post Office network. This funding will enable:
Significant investment in 4,000 of the country’s largest Post
Offices to refresh the branches and deliver improved standards of
service.The `Post Office Local’ model to be extended to 2,000
smaller branches across the UK. This is a new format for providing
post office services in partnership with a local retailer. 94% of
customers have been ‘very’ or ‘extremely’ satisfied with the model
at pilot stage. The Post Office to improve its online services and
introduce a range of IT improvements to make transactions quicker
and simpler. Continuing subsidy for those branches that provide a
vital social service but which could never be profitable.
The policy statement also outlines a number of new opportunities
for the Post Office.
The Government wants to see the Post Office become a genuine
Front Office for Government at both the national and local level.
A number of pilots have now been agreed and other opportunities
are under development. For example: a pilot is being considered
that would see Post Offices verifying supporting documents for
customers of the Pension Service; a pilot has been agreed that
will enable the Post Office to provide print on demand government
forms; and the Post Office is exploring whether it can play a role
in supporting Jobcentre Plus in the National Insurance Number
application process.
The Government is keen for the Post Office to expand further into
financial services. This will include offering new products
through its relationship with the Bank of Ireland and looking into
ways that the Post Office and Credit Unions can work more closely
together. The Government also has an ambition that all UK current
accounts will be accessible through the network and welcomes the
new agreement between RBS and Post Office Ltd to provide access to
current and business accounts through post offices.
The Government is keen for banking to be extended at the Post
Office, but has decided against one particular proposal. It has
concluded that now is not the right time to create a new
state-backed Post Office Bank. Setting up and capitalising a new
bank would be time consuming and extremely expensive. At a time
when the public finances are under huge strain it believes funding
is better spent modernising and maintaining the network.
Notes to editors
1. The Government’s Postal Services Bill makes the following proposals:
Royal Mail
• The requirements of the universal postal service – collection
and delivery of post six days a week at uniform, affordable prices
are written into the Bill. The Government has no intention of
downgrading them.
• Royal Mail will be able to benefit from an injection of private
capital - ending the dependence on funding from the taxpayer and
bringing new commercial disciplines into the business.
• Alongside private sector investment:
• At least 10% of the shares in Royal Mail will go to its
employees in the future. This will be the largest employee share
scheme of any privatisation for 25 years.
• Royal Mail will be relieved of its enormous historic pension
deficit by the Government.
• As part of a general reform of the regulatory regime for mail,
the existing regulator, Postcomm, will be replaced by Ofcom, the
communications regulator, with the Bill providing for the transfer
of Postcomm's regulatory responsibility and its staff to Ofcom.
Post Office
· The network of 11,500 Post Office branches is not for sale and
there will be no further programme of closures.
· Could be converted into a mutual structure as part of
innovative new plans to hand the ownership and running of the Post
Office to employees, sub postmasters and local communities.
2. The funding for Post Office Ltd is broken down as follows:
Financial year 2011/12 - £180m
Financial year 2012/13 - £410m
Financial year 2013/14 - £415m
Financial year 2014/15 - £330m
3. The funding is subject to state aid approval by the European Commission.
4. The Post Office Policy statement is available here http://www.bis.gov.uk/Policies/business-sectors/postal-services
5. BIS' online newsroom contains the latest press
notices, speeches, as well as video and images for download. It
also features an up to date list of BIS press office contacts. See
http://www.bis.gov.uk/newsroom
for more information.
Contacts:
BIS Press Office
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Joe Upton
Phone: 020 7215 5959
Joe.Upton@bis.gsi.gov.uk