Plans to help to save the Post Office with the introduction of what had been known as the Universal Bank account have been scaled back, to the fury of sub-postmasters.
They told MPs yesterday that savers were now being discouraged from signing up to Post Office bank accounts, designed to provide basic banking services to people on low incomes.
Sub-Postmasters have taken their three-year fight to be paid the national minimum wage to the Court of Appeal. The Inland Revenue has also joined the test case brought against Royal Mail.
Failure by Royal Mail to win the case could spark a deluge of claims from 16,000 sub-postmasters seeking the minimum wage and benefits under the Working Time Directive, including holidays.
In the hearing, which began yesterday, Tim Brennan, QC, argued for the Revenue that sub-postmasters should be classified as homeworkers as defined by the Minimum Wage Act.
Read MoreThe chairman of Royal Mail today launched a fresh attack on the industry’s regulator, warning that its painfully slow regime was threatening the future of the postal service.
Allan Leighton said the business was running out of time to put in place a recovery plan, blaming constraints from Postcomm.
Mr Leighton said it was now nine months since the Royal Mail submitted plans to raise stamp prices by 1p as part of its plan to tackle losses which are still running at more than #1 million a day.
Read MorePostcomm’s liberalisation plans are expected to face fierce criticism from all parties appearing today at a trade and industry select committee hearing on Royal Mail.
Allan Leighton, the company’s chairman, will condemn the regulator’s “misguided interventionism” and can expect support from unions concerned by the rate of liberalisation. Mr Leighton was stepping up opposition to Postcomm’s price control proposals as the consultation period drew to an end yesterday, saying they undermined the universal service and the operator’s recovery plans. “Now’s the crucial time, nine months into our three-year renewal plan. Without any certainty about the regulator’s stance, everyone is asking this company too much.”
Read MoreThe chairman of Royal Mail has launched a fresh attack on the industry’s regulator, claiming that it’s threatening the future of the postal service.
Allan Leighton says the business is running out of time to put in place a recovery plan, blaming constraints from Postcomm.
Mr Leighton says it’s now nine months since the Royal Mail submitted plans to raise stamp prices by 1p as part of its plan to tackle losses which are still running at more than £1 million a day.
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