Sub-post offices concerned about changes in social security benefits and pensions
Every so often a retailer spots a post office going out of business nearby
and asks me how to go about getting the service shifted into their own
business. The sub-post office, that weird mix of public and private
enterprise, can be a golden opportunity for some, although lately it’s
looking a little risky.
At the moment there are around 450 for sale on the open market (advertised
on the internet site BusinessesForSale.com). From April 1, the Post Office
(or Consignia as it now styles itself) will consign to the bin the levy it
charges new entrants — which amounts to 25 per cent of the first year’s salary — in a bid to boost transfers.
Around two post offices a day close in Britain, so the future does not
look rosy, especially since the payment of benefits is set to switch from POs
to banks by 2003.
According to Colin Baker, general secretary of the National Federation of
Sub-Postmasters, members fear their salaries will drop by 40 per cent
after 2003 when social security benefits and pensions will be paid into bank
accounts.
Footfall in sub-post offices will drop dramatically and with it, possibly,
a lot of impulse sales — although a number of sub-post-masters have told me
that the post office queues never buy anything else anyway.
The PO has a couple of initiatives up its sleeve to enhance the sub-post
office business, including turning them into banks and into information
centres offering advice on government services.
Here’s hoping they get going very soon. And here’s a rule of thumb for
you. Where government departments are concerned, the left hand often doesn’t
know what the right hand is doing. For example, last week a retailer asked me
about his responsibility for paying the Working Families Tax Credit (WFTC).
He had been contacted by the Benefits Agency which had informed him that
he had a member of staff who qualified and that he should pay it via the PAYE
scheme. His accountant then told him that there was no point in switching
just one member of staff to PAYE, he would need to switch everyone.
However, no-one informed him that, if he didn’t run a PAYE scheme, he
didn’t need to start now.
All he was required to do was to tick the box on the Inland Revenue form
saying he did not operate a PAYE scheme and the benefit could be paid
through a bank account, or claimed from the post office.
I could add here that it could be claimed in this way until 2003 but it
would be irrelevant because the WFTC is to be replaced by another scheme within
two years — so it’s a case of watch this space.
A useful telephone number to keep in your back office is the Employers’
Helpline: 0845 7143 143.
Since it cuts across so many different Government departments, it does
seem to know its left from its right.
Page 30;Volume 224;Issue 7492
THIS IS THE FULL TEXT: COPYRIGHT 2001 William Reed Ltd. Subscription:
COPYRIGHT 2001 Gale Group
GROCER, 24th February 2001
