Tag: Royal Mail

Post office sale to net Royal Mail GBP 20m

Posted by | Mar 24, 2008 | |

Royal Mail is selling off post office premises worth GBP 20 million as part of its closure programme.

A total of 40 post offices, mainly large high-street branches in medium-sized market towns, are up for sale. They are all part of the Crown Post Office network which is directly managed by Royal Mail.

The news follows last week’s back-bench rebellion in the House of Commons when 20 Labour MPs voted to call a halt to the Government’s plans for closing 2,500 loss-making post office branches.

A spokeswoman for the Post Office said of the 40 properties being sold: “These buildings became vacant because last year we announced a deal with WH Smith which was about relocating some of our Crown office branches into their stores. That has been happening over the past year. The Crown office part of the network has been losing GBP 70 million a year and was not sustainable. As we would do with any surplus buildings, we are looking to sell them.”

The Post Office will continue to run 373 Crown post offices alongside branches run by private sub-postmasters and by retailers. By the end of summer 2008 it is expected that 76 Post Office branches will be sited within WH Smith stores.

It is understood that Royal Mail has already received a lot of interest in the buildings, mainly from local businesses. Although they have only just been put up for sale, it is thought that many will be turned into restaurants, bars and shops.

Anyone wishing to buy the former post office buildings must apply for planning permission to convert the properties. Half of the premises are leasehold and half are freehold.

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Ulster post offices now facing the axe

Posted by | Mar 22, 2008 | |

Fears are growing that dozens of post offices in Northern Ireland could be facing the axe.
A major announcement is expected on April 1 – and the mood is gloomy in the wake of a controversial Government cull in Great Britain.

Royal Mail has announced the closure of 2,500 offices across England, Scotland and Wales.

The Post Office is refusing to comment on possible closures here, but an approach similar to Great Britain would result in the axing of 10-20 per cent of Northern Ireland’s 540 branches.

Last night the Cookstown-based Rural Community Network (RCN) said if such closures experienced in Great Britain were carried over to the Province it would have a devastating effect on pensioners.

“Research has shown that older people in Northern Ireland are significantly more reliant on post offices than in England,” said Mark Allen, RCN research officer.

“What the decision-makers may not appreciate is that to able-bodied people with cars, these closures may not seem significant.

“But to vulnerable pensioners or lone parents, and people with literacy problems, the service is like a bank, community centre and general advice bureau all rolled into one.

“Many postmasters have told us that the services they provide to pensioners fall far outside their official remit, such as helping them fill in important forms and advising them on how to access other essential services.

“And the postmasters are also subject to a draconian confidentiality clause which forbids them from discussing who is to close. If they break confidentiality they could forfeit any compensation.”

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Getting it dead right

Posted by | Mar 21, 2008 | |

Make sure you get your funeral sorted says the Post Office®

As the credit crunch takes effect many people are reviewing their finances but one thing people often forget about is planning for a funeral should the worst happen. In fact recent research for the Post Office® shows that only 15 per cent of us will actually plan in advance to cover the costs of our funeral and perhaps even more importantly stipulate the kind of funeral we want.

Post Office® research has shown that, given the choice, only half the UK population would opt for a traditional burial or cremation. It also revealed that the favourite UK spot to have ashes scattered would be the Lake District followed by the deceased’s favourite football ground.

If they planned ahead, 18 per cent of people would opt to have their ashes turned into a diamond and 13 per cent made into a firework. A quarter of people would go for a more eco friendly cardboard coffin and 15 per cent for freeze drying where your body is frozen then shattered into a biodegradable dust.

Forty per cent of those surveyed would want a celebratory-style funeral with nobody dressed in black although 10 per cent would go for a funeral procession with black horses and carriage.

Despite the fact that the cost of a funeral is generally well over GBP 2,000 these days, the research showed that nearly half (47 per cent) of people thought it would cost less than GBP 2,000. And only 30 per cent of people would have GBP 2000 or more to cover the cost of a loved one’s funeral if they died tomorrow.

Post Office® life insurance manager Duncan Caesar-Gordon said: “The cost of a funeral can run in to several thousand pounds. Taking out the Over 50s life insurance cover means you will receive a guaranteed cash sum so at least family and friends will have money to put towards a traditional funeral or a special send off you may have in mind.

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Councils could run threatened post offices in UK

Posted by | Mar 20, 2008 | |

Councils will be able to run closure-threatened post offices, the Government confirmed yesterday.

The Post Office had been told to enter into negotiations with councils wanting to take over the running of some of the branches earmarked for closure.

Business Secretary John Hutton has now written to the Post Office, encouraging the company to engage with local authorities.

He said, “If there is a way forward here which might allow more sub-post offices to remain open, while retaining a sustainable network, I am sure the Post Office will want to look very closely at how any such proposals could work in practice.”

Yesterday a Conservative motion aimed at halting the closure programme was defeated in the Commons. The Tories had hoped to persuade an estimated 90 Labour MPs who have campaigned publicly against the closures to vote with them.

Tory spokesman Alan Duncan said Labour should have “no option” but to vote with them, but last night only around 20 did so.

Plaid Cymru’s Westminster leader Elfyn Llwyd said, “There is a terrible whiff of hypocrisy in Westminster. Many Labour ministers and backbenchers are voting in favour of the closure of post offices, while at the same time running around like headless chickens in their constituencies, pretending to campaign in favour of keeping these post offices open.”

The Liberal Democrats said they wanted to de-couple the Royal Mail and Post Office, keeping the latter in the public sector but giving it freedom to develop services for all mail delivery companies.

A 49% stake in Royal Mail would be sold to the private sector, with 50% made available to provide an employee trust for staff on the John Lewis model.

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Charities face hike in postage costs (UK)

Posted by | Mar 20, 2008 | |

Charities are facing spiralling postage costs after Royal Mail warned it can no longer guarantee to reimburse them when donors put stamps on freepost envelopes.

The move, which it is claimed could cost charities millions of pounds in extra postage costs, has been sparked by the introduction of new automated sorting systems. In the past, many charities have encouraged the practice as it saves them thousands of pounds a year.

The issue is understood to have been raised with Royal Mail by client group Direct Marketing in Fundraising Group (DMiFG). Following the DMiFG’s enquiry, Royal Mail has contacted a number of charities to clarify that the terms and conditions of the Business Response Service do not allow for postage to be paid by the sender, and that the practice should be discouraged.

Cascaid strategy and planning director Roger Lawson says: “Ultimately, this is going to cost the sector a lot of money. Over the years it will be in the millions.”

Lawson adds: “It’s a shame if it comes down to automated sorting, because I can’t believe that Royal Mail can’t produce a machine that can identify whether or not there is a stamp on the envelope.”

One insider predicts that the decision will damage the reputation of many charities who are constantly under pressure to reassure supporters that they keep their administration costs to a minimum.

He says: “This was the one area where the Royal Mail showed some compassion towards the good work being done by the charity sector. If they withdraw this service, charities will no longer be seen to be doing the right thing. And ultimately it could dissuade charities from using direct mail as a channel.”

A Royal Mail spokesman says: “There has been no change to the Business Response Service policy. It has existed since the product was introduced and we would encourage people to stick to the rules of the product.”

He also clarified that any charity that could prove postage had been paid for items twice would be refunded.

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