Postcomm's perspective on building a viable Post Office network
25 October 2004
Postcomm believes Post Office Ltd is making good progress in developing the commercial potential of the network – but there is some way to go before this can compensate for continued financial support from the government. New products and services are providing a lifeline for many Post Offices but for others there remains insufficient demand for these services.
These are some of the conclusions from Postcomm’s fourth annual report on the Post Office network. The report, to the Secretary of State for Trade and Industry, comes at the end of a year which has seen:
- Implementation of the urban reinvention programme and improvements for remaining urban Post Offices to give them a more secure future
- Financial support for Post Offices in urban deprived areas
- The development of banking facilities and a wide range of new products and services for customers at Post Office branches
- Growing concern about the future of the Directly Managed Branches
- Extension of the funding package for the rural network to help sustain rural post office branches and support pilots to inform the government’s longer term plans.
Nigel Stapleton, chairman of Postcomm, said:
“Last year we called for action by the government and Post Office Ltd to move ahead with the urban reinvention programme to prevent random closures and to secure a viable network. After a slow start, the urban reinvention programme has eased uncertainty among urban subpostmasters by giving the remaining branches a more secure future.
“We also welcome the major steps that have been taken to offer new products and services to make Post Offices more attractive to customers. This is a key development, helpful to customers and subpostmasters alike, and critical to the future of the network. Our chief concern at this point is whether the new products and services will provide a viable living for subpostmasters, particularly in some deprived areas and we will be closely monitoring this issue.”
The report welcomes the government’s decision in September to maintain the financial assistance package for rural Post Offices through to 2008. This continued support will provide a valued service to customers.
Postcomm also welcomes the government’s commitment to trial new ways of bringing Post Office services to customers in rural communities and to develop a long term strategy for the network.
Notes for editors
Postcomm’s fourth report to Patricia Hewitt, Secretary of Stat e for Trade and Industry, highlights key developments across the Post Office network in 2003/04. The report also updates network statistics. The number of Post Office branches fell by 1,278 in 2003/4 – a significant increase in the closure rate compared to 2002/3 due to the urban reinvention programme of planned closures (149 rural, 1,129 urban). Almost nine out of ten people (88%) say the Post Office is important to the community and 96% of the population trust the Post Office. Of rural branches that changed hands, 60% had an annual income from the provision of Post Office services of less than £20,000.
Following the Secretary of State’s announcement in September 2004 on the future of the rural network, the government has now agreed to Postcomm publishing its key recommendations in this annual report, as well as the underlying research by NERA and The Future Foundation. Confidential information has been removed from the published research.
The report, Building a viable network, and reports on the future of the rural network by NERA and The Future Foundation are available from Postcomm at 6 Hercules Road, London, SE1 7DB.
More information on Postcomm's work in relation to the post office network.
