Tag: Networks

In May 2007 the Department for Business, Enterprise and Regulatory Reform (BERR) approved plans to close up to 2,500 post offices. The closures are known as the Network Change Programme. Prior to the programme the Post Office had a network of around 14,000 offices and in the financial year 2005–06 it lost £130 million.

The Network Change Programme is intended to save around £45 million a year from 2011 onwards and has cost £161 million to implement.

The Programme is part of a larger plan aimed at returning Post Office Ltd to profitability by 2010-11.This plan includes action to improve efficiency and Post Office Ltd’s financial performance and is being supported by funding of up to £1.7 billion over five years from BERR. This funding includes a £150 million annual subsidy payment in recognition of the social and economic role that post offices play.BERR is responsible for the oversight of Post Office Ltd and is the main shareholder in Royal Mail Holdings plc. It therefore had three tasks in relation to the Network Change Programme:

• To act as a shareholder and safeguard the public’s investment in Post Office Ltd.

• To ensure a nationwide post office network with reasonable access for all because of the social and economic benefits that such a network delivers.

• To put Post Office Ltd on a footing that creates a sustainable network for the future.

The report examines BERR’s oversight of the development and implementation of the Network Change Programme. The report explains why the closure programme was proposed, and BERR’s oversight of the development of the programme. The report then evaluates:the effectiveness in practice of the protections for users given when the programme was announced (Part 3), and BERR’s ongoing monitoring of the programme (Part 4).

We also examined the role played by Postwatch and its successor organisation, Consumer Focus, in monitoring the implementation of the Network Change Programme.