- Post Office announces outcome of six-month review increasing postmaster remuneration by £37 million
- Changes comprises of a £20m increase during 2020/21 and £17m per annum already announced in August 2019
- Move is part of major drive to instil a new, open, and mutually reinforcing commercial partnership between Post Office and postmasters, to deliver for customers and communities across the UK
- Increase in remuneration of £37 million in 2020/21 is 10% higher than 2018/19
The Post Office has today (4 November) announced that the fees postmasters receive for providing Post Office services in their branches in 2020/21 will be 10% higher than in 2018/19.
The move forms part of a major new drive to reset the relationship with postmasters, to reflect a much improved commercial partnership between the Post Office and the thousands of individual business owners, and larger multiple partners, who make up the 11500 strong-Post Office network.
Commenting, Group CEO of the Post Office, Nick Read, said:
“Post Office branches are the backbone of our business and the heart of their communities. I am determined that the commercial partnership we enjoy with them genuinely reflects that and I am delighted to be able to begin that process through today’s announcement. The retail landscape is tough, and the dedication and hard work postmasters show day-in, day-out, must not only be acknowledged, but be properly remunerated too.
“We are putting our customers and the postmasters who serve them front and centre of our future business. Our recent agreement with 28 UK banks to provide everyday banking services is evidence that we are able to negotiate great deals for Post Office. I am determined that we share the benefits appropriately with our partners, postmasters wherever they are, the length and breadth of the UK.”
Minister for Postal Affairs, Kelly Tolhurst, said:
“This is great news for postmasters who provide a vital role in local communities up and down the country.
“I have been pleased to bring together Post Office executives and the National Federation for Sub-Postmasters in our working group over recent months to discuss this and other issues.
“In addition to increased fees for providing banking services announced recently, postmaster pay is now going from strength to strength and reflects the essential services they provide.”
The increase in remuneration follows a six-month review which included engagement with the National Federation of SubPostmasters (NFSP), Kelly Tolhurst, the Minister for Postal Affairs and officials in the Department for Business, Energy & Industrial Strategy, retail partners and around 50 independent postmasters.
Postmasters will receiveincreased fees for providing everyday banking services; additional payments to smaller, rural Post Offices for the services they provide; increased payments for handling digital passport applications; and increased payments for handling online travel currency purchases that are collected in a branch.
£37 million is comprised of a £20m increase during 2020/21 and the £17m per annum already announced in August 2019.The changes announced in August 2019 included increased transaction fees for handling banking deposits in all branches, as well as increases to fixed payments for Community branches which are often the last or only shop in the village.
Over and above this latest increase in fees, every postmaster will also benefit from a dedicated, area manager to support and help them in all aspects of their businesses: to drive footfall into their shops, increase their revenues, and to keep offering a great service to their customers.
About Post Office:
- With 11,500 branches, the Post Office is among the larger retail networks in the UK.
- 98% of Post Office branches are run with retail partners on an agency or franchise basis.
- The Post Office provides services central to peoples’ everyday lives; 99.7% of the population lives within 3 miles of a Post Office.
- We offer the UK’s largest fee free cash withdrawal network through our 11,500 branches, over 2,000 cash machines and 99 per cent of UK bank customers can access their accounts at the Post Office.
- We sell 170 different products and services spanning financial services including savings, insurance, loans, mortgages and credit cards; Government services; telephony; foreign currency; travel insurance and mail services.
- Post Offices branches remain highly valued and trusted, and are the focal point of many communities. For more information; visit www.postoffice.co.uk and to find out about a Post Office business opportunities; visit www.runapostoffice.co.uk