NFSP Welcomes Report on the future of the Post Office Network
The NFSP today (June 2) welcomes a report from the Business & Enterprise Committee which acknowledges the threat to the post office network if subpostmasters lose the right to handle state pensions and benefits.
The Committee’s report on the future of the post office network backs claims by the NFSP that the loss of the Post Office Card Account (POCA) would have a devastating impact.
The Federation has warned that up to 3,000 post offices could be forced to shut if the contract to run the successor to the current POCA contract is lost. A decision on who has won the POCA 2 tender is expected this summer.
Of the 24 million visits made to post offices every week, 6.5 million are made by POCA customers, highlighting the importance of the POCA contract to subpostmasters.
Commenting on the report, George Thomson, General Secretary of the NFSP, said: “Today’s report strengthens our warning that the Government must act to protect post offices left in the network following Network Change by awarding the POCA 2 contract to Post Office Ltd.
“As the Committee’s report accepts, failure to do so would have a devastating effect on the viability and sustainability of the network.”
The NFSP today also backs concerns raised by the Committee on the threat to the post office network from proposals to break up Royal Mail Group.
With income from Royal Mail transactions making up the largest part of subpostmasters pay, the Federation is concerned about the effect this break up would have on this vital source of income.
Mr Thomson said: “It beggars belief that separate reviews of the industry by Postcomm and the Government’s independent review panel have yet to assess the post office network and its integral role within Royal Mail Group, yet both are nonetheless considering separating the Post Office from Royal Mail.
“Under current circumstances, the NFSP believes it is inconceivable that Post Office Ltd could be withdrawn from Royal Mail Group.”
In addition, the NFSP supports the Committee’s demand for the need to safeguard against further post office closures after Network Change.
The Federation has reluctantly accepted the closure of up to 2,500 post offices under Network Change in order to achieve a viable network, but states that there should be no further closures.
Mr Thomson said: “The Government and Post Office Ltd must now focus their efforts to deliver the investment and new products and services required to make sure that the new post office network is given the best possible chance to survive and thrive in the future. With a population of 60 million people, the Federation believes it must be possible to support 11,500 post offices in the UK.”
