Government
Commitment to viable network of of Post Offices
The
Government remains fully committed to a viable network of post offices across
the country and recognises that the sub-post office plays a valuable role in
local communities - particularly for the less mobile. However, neither the
Government nor the Post Office can keep individual post offices open if they are
not being sufficiently used.
Please use the following links to find out more about the topics below.
PIU Report - Modernising the Post Office Network
Urban Reinvention
Financial Support/Investment Packages
Maintenance of the Rural Network and prevention of avoidable
closures
Services of General Economic Interest
Post Office contact details
PIU Report - Modernising the Post Office Network
In
October 1999, the Prime Minister asked the Performance and Innovation Unit (PIU)
in the Cabinet Office to draw up a strategy for the future of the post office
network. The PIU Report was published
in June 2000 and set out 24 proposals and measures to modernise the network, to
protect the rural network in particular and to maintain convenient access and
improve the quality of urban post offices. The Government accepted all of the
recommendations in the PIU report. In line with the recommendations the
Regulator, informed by the Consumer Council, will report annually to the
Government on the shape of both the rural and urban networks and developments
affecting them. Any such reports can be found on the Postcomm
website. [Combine this with PIU page text]
Tell
me more about
The PIU Report
Useful
publications
Performance and Innovation Unit
Report - Counter Revolution
- Modernising the Post Office Network - Report 
[1,460
Kb]
Urban
Reinvention
Following
a Parliamentary
debate in the House of Commons on 15 October 2002, the Government has
made up to £180 million available to Post Office Ltd to carry out its
"Urban Reinvention Programme". This is in response to the PIU
recommendation that if the Post Office decided that
fewer offices were needed in some urban areas, the Government should consider
providing financial assistance to ensure that sub-postmasters were adequately
compensated for the loss of value of their business. A further £30 million is
available on a matched funding basis for improvements to those offices which
expect to see a significant increase in business as a result of nearby closure
under the programme.
Useful
website links
Parliamentary
debate of 15 October 2003
Post Office Ltd do not have a predetermined list of offices which will close under their urban reinvention programme, nor is there any arithmetical formula which will determine the number of closures in any given area. Proposals for closures under the programme will be determined by how many offices are close to each other in the area, the current and projected business volumes and whether individual sub-postmasters have indicated that they want to leave the network. Factors of high importance to customers will also be carefully considered. These include proximity and convenience of access of other branches, public transport links, facilities for the disabled and the ability of other branches to absorb the work without detriment to service. Before any changes are made, a formal consultation process will be carried out, in accordance with a Code of Practice on post office closures (agreed between Postwatch and the Post Office), with local communities, interest groups, councillors and MPs. In every instance there will also be extensive consultation with the consumer body, Postwatch. The Government does not have a role in decisions on individual post office closures.
Useful
documents
Code of
Practice [231
Kb]
Financial Support/Investment Packages
In
response to advice from the Postal Services Commission and discussions with
Royal Mail and Post Office Limited, on 2 December 2002 the Government announced
a support package worth £450 million over three years to help maintain the
rural post office network and to prevent avoidable closures. For further
information on this please see the text of the DTI press release.
Useful
information
DTI
press
release regarding £450m
Previous to this - £480 million was made available for the counters' automation project and £270 million has been set aside for the purpose of beginning the implementation of the PIU report. The £480 million has helped provide new automated terminals in over 17,500 post offices. The first sums of the £270 million have been paid to the network in respect of the pilot of Your Guide. The Your Guide service of post offices as Government General Practitioners was piloted in Leicestershire and Rutland post offices until March 2002. The report evaluating the pilot was completed on schedule and published on 23 July 2002. However, this showed that service was popular but had only a limited impact and will therefore not be rolled out nationally. The pilot generated significant commercial interest in kiosks in post offices. The pilot is also enabling possibilities for future Government services in post offices to be explored.
Tell
me more about
The Your
Guide Pilot
Useful publications
The Your Guide report
[597Kb]
The Government has said it is prepared to consider adding to this investment over the next few years through the support for the developments of initiatives such as Universal Banking Services. The case for new financial support will be considered once viable proposals have been drawn up and approved.
Tell
me more about
Universal Banking Services
As well as this a Government fund, the Sub-Post Office Start-Up Capital Subsidy Scheme, made available £2 million in 2001/02 to assist with one off capital costs associated with the refurbishment or relocation of rural post offices. In particular it is intended to support initiatives by volunteers or community groups to maintain or reopen post office facilities in villages where the traditional post office has closed or is closing.
Tell
me more about
the Sub-Post Office
Start-Up Capital Subsidy Scheme
Maintenance
of the Rural Network and prevention of avoidable closures
A
formal requirement has been placed on the Post Office company to maintain the
rural network and prevent avoidable closures - an unavoidable closure being one
where no one suitable is prepared to take over from the departing
sub-postmaster, where no suitable premises remain available or can be identified
or where an associated retail business is no longer commercially viable. This
requirement will apply until 2006 in the first instance. Neither the Government
nor the Post Office company can guarantee that no post offices will ever close.
It very much depends on the local community using the facility and the
willingness of a sub-postmaster to run their business.
Services
of General Economic Interest
Post Office Limited is required to provide a branch network in order to
make available a range of services of general economic interest, including
access to cash and state benefits. The various services are provided under
contract or agreement with various bodies. However, in clearing the
Government’s aid package for the network, the European Commission required the
UK Government to entrust Post Office Limited with these services of general
economic interest through an overarching ministerial instruct. This was done in
a letter to the company in the form of an entrustment letter.
Useful
documents
Entrustment Letter
[1977 Kb].
Post
Office contact details
Website: http://www.postoffice.co.uk/portal/po
Tel: 08457
22 33 44
Address: Post
Office Limited, PO Box 204, Royal
Tunbridge Wells, Kent, TN4 8BR