Post Office: we are fast-tracking payments to postmasters
Following a Ministerial announcement by the Postal Affairs Minister Gareth Thomas MP, the Post Office has confirmed that it has accelerated the delivery of its first additional remuneration payment to postmasters with a £20 million boost to postmasters pay packets in December.
The £20 million boost to postmaster remuneration comes as the Post Office moves quickly to deliver on its ‘New Deal for Postmasters’ following its Transformation Plan announcement on 13 November.
Both independent postmasters and Post Office’s retail partners that operate branches on its behalf will receive the top-up payment ahead of Christmas. The top-up payment will be based on both the standard fixed and variable remuneration the branch received in November.
Neil Brocklehurst, Post Office Acting CEO, said: “As we implement our ‘New Deal for Postmasters’ we are fast-tracking payments to postmasters in recognition of the challenging trading conditions they are currently experiencing. Our customers want services in the run-up to Christmas that are convenient and in-person, and that’s what our postmasters and retail partners offer. We want our postmasters to focus on what they do best, serving their communities, and not to be worried about making ends meet”.
“Postmasters and their teams are handling close to 15 million customers coming through their doors every week in the run up to Christmas. Across our 11,500 branches customers can quickly and conveniently deposit or withdraw their cash and access a wide variety of parcel collection and delivery services as well as pay bills or top up their gas and electricity metres.”
Post Office Minister Gareth Thomas said: “This government is committed to strengthening the Post Office and making sure postmasters receive the income they deserve for the vital services they provide for communities across the country.
“That’s why we are providing a further £37.5 million of network subsidy this financial year which is essential to stabilise the organisation. I welcome the Post Office’s one-off payment this month to postmasters, which will go a long way in easing the burden they face ahead of Christmas.”
Calum Greenhow, Chief Executive Officer for the National Federation of SubPostmasters, said: “The NFSP has long campaigned for a significant increase in postmasters’ remuneration to reflect the value of the vital public services that postmasters deliver to communities.
“We know that right now many of our postmasters are struggling and are very worried about their ability to pay bills and provide for their families.
“This £20m as a one-off payment in December is not only well timed but very much required. We look forward to working with the government and Post Office to deliver a further £100m uplift in annual remuneration by March 2026.”
Subject to Government funding, the Post Office’s Transformation Plan provides a route to adding an additional quarter of a billion pounds annually to total postmaster remuneration by 2030 by dramatically increasing postmasters’ share of revenues.
As part of the plan, postmasters can expect up to £120m in additional remuneration by the end of the first year of the Plan, representing a 30% increase in revenue share. The ambition is to double average annual branch remuneration by 2030 with the right market and regulatory landscape.
Postmaster engagement in the running of the business is to be strengthened with a new Postmaster Panel and Consultative Council being established.
