Post Office services blueprint unveiled
The UK government has revealed plans to introduce governmental and extended financial services to the Post Office network. It said it was “determined” to secure the long-term sustainability of the Post Office network over the coming years.
The admission was made after the government released further details on how they will shape the future of the flagging network.
Last month, the government announced a £1.34bn funding package over the next four years to maintain and modernise the Post Office network.
Under the blueprint, the Department for Business, Innovation & Skills (BIS) said the Post Office can become “a genuine front office for government at both the national and local level”.
A number of pilots have now been agreed and other opportunities are under development.
Pilots under consideration include Post Offices verifying supporting documents for customers of the Pension Service; the network to provide print on demand government forms; and the organisation to explore whether it can play a role in supporting Jobcentre Plus in the National Insurance Number application process.
The Government is keen for the Post Office to expand further into financial services, but ruled out the creation of a new state-backed Post Office Bank.
A spokesman for the BIS said: “Setting up and capitalising a new bank would be time consuming and extremely expensive. At a time when the public finances are under huge strain it believes funding is better spent modernising and maintaining the network.”
New products could be launched through its relationship with the Bank of Ireland, with the BIS saying it is looking into ways that the Post Office and Credit Unions can work more closely together.
The Government also has an ambition that all UK current accounts will be accessible through the network and said it welcomes the new agreement between RBS and Post Office Ltd to provide access to current and business accounts through post offices.
Responding to the news, minister for postal affairs Edward Davey said: “We’re determined to turn the Post Office network around and end the years of decline. The Post Office is a tremendous national asset. It will not be for sale and there will be no programme of closures.
“To underline our commitment we have announced £1.34bn of funding over the next four years. The money will put the Post Office on a stable financial footing. It will help modernise the network and make it even more appealing to customers.
“New government and financial services will also attract new customers through the door. I’m particularly pleased to announce an agreement between Post Office Ltd and Royal Bank of Scotland (RBS). This will give RBS and NatWest customers access to their current and business accounts through the Post Office. This will mean that almost 80% of current accounts will be accessible at post offices.
“Our long-term goal is to convert the Post Office into a mutual structure, for example like the Co-operative Group, giving employees, sub postmasters and communities a much greater say in how the company is run. Our programme means the network is on the cusp of an exciting new era.”
Paula Vennells, managing director of Post Office Ltd, said: “We warmly welcome the government’s significant level of support and commitment, which will allow us to invest in the network and in our service to customers, and help us develop new business.”
