Tag: Royal Mail

The Government hinted yesterday that Britain’s post offices should be allowed to take on competitors’ business to help put the network on a sure financial footing. Ministers will soon set the level of the annual pounds 150 million subsidy for the post office network after 2008. If it is cut heavily, thousands of post offices will have to close.

Mr Fitzpatrick said part of the solution was for the post offices, which are losing between pounds 2 million and pounds 4 million a week, to be allowed to look for new business. Under the current arrangement sub-post offices, which are private businesses, can only handle post for Royal Mail under an exclusive contract, rather than for other carriers such as DHL.

They are also not allowed to have alternative payment terminals in their shops, such as Pay Point terminals, which are now needed to sell TV licences.

Mr Fitzpatrick suggested that this sort of deal was likely to have to change. “We are doing all we can to help Post Office Limited provide new financial products.

“They are the biggest supplier of personal insurance, the biggest supplier of foreign currency, they have recently launched products like a new saver account and they are migrating people from post office card to other bank accounts.”

The National Federation of Subpostmasters has asked for a range of financial products including a student account, for them to sell.

Deregulation of the postal industry has not yet severely damaged Royal Mail’s position as the main provider of post to businesses, according to Postcomm’s annual Competitive Market Review.

The watchdog’s report shows that Royal Mail still serves 99% of businesses – the same as in 2005. The postal services market was opened to full competition on 1 January.

Royal Mail’s rivals, led by TNT Post UK, DX Network Services and DHL Global Mail, appear to be expanding their customer base, albeit from a very low starting point. These competitors are used by 6.7% of businesses for at least some of their direct mail – four times more than in 2005.

‘Although Royal Mail remains by far the biggest operator, competition has encouraged it to raise its game,’ said Postcomm chief executive Sarah Chambers.

Royal Mail is launching a far-reaching employee assistance scheme that will put the company at the leading edge of workplace advice and help programmes.

Known as HELP (Health and emotional wellbeing, Employment advice, Legal services and Practical assistance), the new service will be free of charge to employees and members of their immediate family. It offers confidential advice round-the-clock on both personal and practical topics from independent experts. These could range from money problems, legal issues and work-related topics to finding local service providers, such as child minders.

Initial contact to the HELP service is via a dedicated helpline, with the option of face-to-face counselling if appropriate to cover issues such as stress management, bereavement, and relationship issues.

Tony McCarthy, Royal Mail’s People and Organisational Director, said HELP was part of Royal Mail’s commitment to support its people whenever they needed it under the company’s continuing drive to make Royal Mail a great place in which to work.