Tag: Royal Mail

Insurers targeted by Post Office

Posted by | May 20, 2007 | |

The Post Office has drawn up ambitious plans to quadruple its share of the home and motor insurance market in the next five years.

It aims to take on giants such as Norwich Union and Direct Line to become a top five motor and household insurer.

A subsidiary of Royal Mail, the Post Office is already one of the fastest-growing insurers, having written 500,000 policies since it entered the market two years ago.

It currently insures one in 50 cars in Britain. However, the company is aiming to write 2m policies, equivalent to GBP 1 billion in premium payments, by 2012.

If successful, the Post Office’s market share would increase from about 2% to 8%, propelling it from 15th largest motor and home insurer into the top five.

The British motor and home insurance market is led by Royal Bank of Scotland, which owns Direct Line and Churchill, with about 25% of the market and Norwich Union, with a share of about 19%.

The Post Office’s plans include a partnership deal until 2012 with Budget Group, a privately owned South African company, which produces branded insurance policies.

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Unions claim Royal Mail wants to scrap some collection days

Posted by | May 18, 2007 | |

Royal Mail wants to scrap all Sunday and Bank Holiday collections, York postal union leaders have claimed.

The Communication Workers Union says the proposal is part of a nationwide move to cut weekend working and reduce overtime payments.

The claims are made in a newsletter issued to York posties by the union’s North East Division. The document was passed to The Press yesterday, within hours of the paper reporting that postal staff across the country are to be balloted for possible strike action over pay.

The letter suggests Royal Mail aims to deliver only first class mail on Saturdays, with second class mail moving to Mondays.

“Royal Mail will introduce this by July 2. They are also in discussions with both Postcomm and Postwatch to cease all Sunday and Bank Holiday collections.”

The newsletter also claims that massive TV screens costing GBP 6,000 are being installed in every delivery office, mail centre and Post Office counter in the country.

It claims that, with 2,000 delivery offices, about 450 Post Office counters and 78 mail centres which have had more than one screen installed, the cost has come to about GBP 15 million.

The newsletter states: “And they say they can’t afford to give us a pay rise!”

It says Royal Mail chiefs will probably use the screens to plead with staff to vote no to industrial action, and the union is asking members to “turn your back” on the screens.

A Royal Mail spokeswoman said that under its licence, it was obliged to deliver and collect six days a week.

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Securing sustainability of the network is now the issue

Posted by | May 17, 2007 | |

Postcomm, the independent regulator for postal services, has commented on the Governments long-term plans to safeguard the future of a viable and sustainable Post Office network.

Postcomm Chairman Nigel Stapleton said:

Steps to secure the long-term sustainability of the Post Office network must now be the priority. The Governments timetable for closures is ambitious and it is vital that, at the same time, Post Offices are being given the right range of services and products to give them a long term future. In order for it to survive, the Post Office network needs a clear vision, well trained and motivated people and associated set of commercial products and services.

Postcomms statutory role requires it to monitor developments in the Post Office network and provide advice to the Secretary of State for Trade and Industry, but it is not its role to make decisions on the future of either the network as a whole, or of any individual Post Office.

Postcomm aims to make sure that:

* Royal Mail provides universal access to postal services;
* the government has clear advice about developments in the Post Office network and its role;
* attention is focused not on Post Office numbers, but on making sure customers have sufficient access to Post Office services to meet their current and future needs; and
* the provision of Post Office services takes account of the needs of vulnerable groups and those living in isolated and deprived areas.

Postcomm issued a report, entitled Post Offices at the crossroads, in October 2006, which is available on the Postcomm website (www.psc.gov.uk).

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Post Office broadband service to be launched under deal with BT

Posted by | May 17, 2007 | |

The Post Office will launch a broadband service later this year under a strategic partnership with BT Wholesale, it was announced today.

The agreement marks a key step in the Post Office’s drive to expand its range of services and products to generate new revenues to support the branch network by helping replace lost income from a decline in its traditional business.

“The agreement provides the platform to enhance the Post Office’s existing HomePhone service while offering customers some of the best deals in the market for both voice and internet broadband services.”

Under the four-year deal, BT Wholesale will provide an integrated range of telephony and broadband services.

It builds further on the Post Office’s growing range of new services and products, including car and home insurance, Instant Saver accounts, the Post Office credit card and personal loans, as well as increasing sales of foreign currency and travel insurance.

The first benefits from the agreement will be unveiled next month when Post Office HomePhone launches a new price and service package that will strengthen further its existing competitive offering. HomePhone has already won 400,000 customers with the lowest line rental prices of any major provider if payment is by direct debit, along with itemised billing, and discounts against favourite numbers.

Work is already underway by the Post Office to launch a broadband service in the autumn that will compete head to head with the major players in the market.

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2,500 UK Post Offices will close

Posted by | May 17, 2007 | |

As expected Alistair Darling has confirmed there will be 2,500 compensated post office closures over the next 18 months. This will leave a post office network by spring 2009 of about 11,800 post offices.

Millie Banerjee, Chair of the watchdog for postal services, Postwatch, gave the following reaction to the news:

“This will not be a popular decision. But there is a broad consensus amongst those who have been considering the future of post offices that quite severe pruning is necessary if the remaining network is to be sustainable.

“Fewer customer visits and losses of over GBP 200 million a year meant action was needed. It is welcome that the government has confirmed today that financial support in excess of GBP 1.5 billion will be available up to 2011.

“We wanted the government to take a decision and to provide the missing strategic guidance. It is now down to Post Office Limited to work with Postwatch, MPs, local authorities and customers to implement the decision and to maintain as far as possible customer access to post offices services. We welcome the introduction of 500 alternative post offices in place of their bricks and mortar counterparts. These alternative mobile, part-time or co-located solutions provide local access at far less cost.

“Customers will be concerned to know if their local office is under threat. At this early stage no-one knows which offices will be proposed for closure. An announcement will be made once the closure consultation plan and timetable are finalised.

“I am sure customers will recognise that it is better for closures to be planned rather than unplanned: Unplanned closures could have led to some areas having no access at all to post office services.

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