BBC cancels contract for UK post offices to sell TV licences

POST OFFICES were dealt another blow yesterday when the BBC announced an end to their contract to issue television licences after 60 years.

The corporation said it would save pounds 100 million over six years by giving the contract to Paypoint, which operates over-the-counter payments through shops such as Co-op, Londis, Spar, Costcutter, Texaco and Somerfield.

But sub postmasters, who are in many cases already struggling to avoid closure, fear that the move will further damage their businesses.

An estimated 2.1 per cent of post office income derives from the sale of television licences. Five million people pay for their licence at the post office every year.

There are almost 15,000 Paypoint outlets, which is slightly more than the number of post offices. Paypoint said it would have 17,000 by 2007 and that its operations were open for an average of 100 hours a week.

Last year the Post Office completed a programme of 2,500 closures of urban branches. About 100 rural branches are closed each year. Paypoint will provide the service from May 2 but there will be a three-month crossover period before the post office service ends on July 31.

A spokesman for the Post Office said: “We are very disappointed that post office customers will no longer have the option of renewing and saving for their television licences in our 14,500 branches. Five million viewers visit the post office to buy their television licences because that’s the payment method they find most convenient.”

Pipa Doubtfire, the head of revenue management at the BBC, said: “This contract will provide better value for the licence payer and will enable the BBC to put more money into programmes.”

Colin Baker, the general secretary of the National Federation of Sub Postmasters, said: “It is one more devastating blow to the network. Like the BBC, the post office has a wider social role to play in the community than its commercial competitors.”