2,500 UK Post Offices will close

As expected Alistair Darling has confirmed there will be 2,500 compensated post office closures over the next 18 months. This will leave a post office network by spring 2009 of about 11,800 post offices.

Millie Banerjee, Chair of the watchdog for postal services, Postwatch, gave the following reaction to the news:

“This will not be a popular decision. But there is a broad consensus amongst those who have been considering the future of post offices that quite severe pruning is necessary if the remaining network is to be sustainable.

“Fewer customer visits and losses of over GBP 200 million a year meant action was needed. It is welcome that the government has confirmed today that financial support in excess of GBP 1.5 billion will be available up to 2011.

“We wanted the government to take a decision and to provide the missing strategic guidance. It is now down to Post Office Limited to work with Postwatch, MPs, local authorities and customers to implement the decision and to maintain as far as possible customer access to post offices services. We welcome the introduction of 500 alternative post offices in place of their bricks and mortar counterparts. These alternative mobile, part-time or co-located solutions provide local access at far less cost.

“Customers will be concerned to know if their local office is under threat. At this early stage no-one knows which offices will be proposed for closure. An announcement will be made once the closure consultation plan and timetable are finalised.

“I am sure customers will recognise that it is better for closures to be planned rather than unplanned: Unplanned closures could have led to some areas having no access at all to post office services.

“Postwatch will, of course, study the government’s decision carefully. We will write to the DTI pointing out where we disagree with aspects of the decision. For instance we are concerned at their decision to have only 6 weeks for local consultation when 12 weeks is recognised as best practice by the Cabinet Office. But Postwatch will not try to change the decision. All our efforts will now be directed to making it work and to getting the best possible outcome for customers.