Banking on the future of the Post Office network

3 October 2003

Postcomm publishes its third annual report on the Post Office network today.

In it, Postcomm says that significant progress has been made in implementing the key recommendations of the Cabinet Office Performance and Innovation Unit's 2000 report into the network. The last year has seen:

  • Announcement of financial assistance for rural Post Offices
  • The start of the urban reinvention programme and improvements for remaining urban Post Offices
  • Financial support for Post Offices in urban deprived areas
  • The launch of expanded banking facilities at Post Office branches.

Graham Corbett, chairman of Postcomm, said:

“Last year we called for action to be taken quickly to improve the business prospects for subpostmasters and support the Post Office network. Significant steps have now been taken by Post Office Ltd and the government to secure the future of the network. The expansion of banking facilities at Post Office branches is a key development, helpful to customers and subpostmasters alike, and renews hope for the future of the network.

“Although the government’s financial assistance package will help support rural Post Offices through to 2006, the report shows that branches with few customers and low incomes continue to have the highest closure rate. Postcomm is advising the government separately on options for a long term strategy for delivering rural Post Office services”.

Notes for editors

Postcomm’s third report to Patricia Hewitt, Secretary of State for Trade and Industry, highlights key developments across the Post Office network in 2002/03 – including the introduction of universal banking services. The report also updates network statistics. The closure rate has again fallen from its high in 2000, with rural closures showing a marked decrease to 1.4%.

In line with Postcomm’s repeated emphasis on the need for ensuring continued access to Post Office services, rather than maintaining a specific number of Post Office branches, Postcomm supports Post Office Ltd’s urban reinvention programme, aimed at reducing the number of urban branches so as to produce a viable urban network.

In rural areas, viability continues to be a problem - 60% of rural Post Offices which closed in 2002/03 had fewer than 70 customers a week.

More information on Postcomm's work in relation to Post Offices.