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Post Office
Key Facts
+ There are around 11,700 post office branches in the UK, with the Post Office
network is at its most stable for over 25 years.
« 93% of the national population (and over 99% in urban areas) live within one
mile of their nearest post office branch.
« Around 18 million customers & a third of SMEs visit post offices every week.
« The Government has committed nearly £2 billion to maintain and modernise
the Post Office. £1.34 billion in the 2010 Spending Review, & a further £640
million announced last week to cover the period 2015/16 to 2017/18.
« For 2013/14, Government is providing a subsidy of £200 million, and investing
a further £215 million to secure the longer term financial sustainability of the
network.
- Post Office Ltd was separated from Royal Mail in April 2012, and is an
independent company. It has a long term commercial agreement with Royal
Mail to provide access to Royal Mail services at post office branches.
« Arecent independent report into Post Office’s Horizon accounting system
found there is “no evidence of system wide problems’.
Top 5 Government Actions (since May 2010)
1. There will be no repeat of the closure programmes of the previous
Government. We have committed to maintain a network of at least 11,500
branches, and to transform the network securing its sustainable future.
2. We are providing funding to modernise up to 8,000 post office branches by
2018. Two new operating models — "Main" and "Local" — will see
improvements for customers. Over 2,250 subpostmasters have signed
contracts to convert their branches. The BIS Committee concluded “the
reforms are necessary” and “in the right direction’.
3. We are ensuring where the post office is “the last shop in the community’ it
will continue to receive subsidy to ensure vital community services remain
available. These branches also benefit from a £20 million investment fund.
4. The Post Office is making good progress on its ambition to provide more
services on behalf of both national and local Government — for example it
was recently awarded a new cross-government framework contract which
runs to 2020. DVLA and HM Passport Office have already moved their
services onto this contract and the Passport Office is discussing new in-
branch services. The Department for Work and Pensions and Post Office are
also discussing a long term successor to the Post Office Card Account. All
options under consideration conclude that access to pensions and benefits
across the post office network will continue beyond March 2015. The
Government supports the Post Office in its front office ambition.
5. The Post Office is making good progress towards meeting its commitment to
provide affordable and accessible financial services. In May 2013 it launched
a current account pilot, with national rollout expected during 2014. Alongside
this, the Post Office continues to offer an extensive range of savings, credit
card and mortgage products.
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Elephant trap
[If pressed about the relationship with Royal Mail]
« A long-term commercial agreement was agreed between Post Office Ltd and
Royal Mail in January 2012. As the Chief Executive of Royal Mail said before
Parliament, it is “unthinkable” that the two companies will not always work
very closely together.
« The two businesses, which are now separate and independent, do
complement each other, and there is an operational imperative for the two to
continue to work closely together on a commercial basis that meets the needs
of both.
[If pressed about Crown franchise proposals or strike action]
« Eliminating the significant losses incurred by the Crown post office network by
March 2015 is a key element of the strategy to make the network sustainable
in the long-term. As part of this strategy, Post Office Ltd is seeking retail
partners to provide post office services in up to 70 branches, and the
company is currently holding public consultations on the first of these
proposals.
« The Government does not play any role in pay negotiations between Post
Office Ltd and its staff. This is an operational matter between the company
and its CWU-represented Crown office staff.
[If pressed about NFSP / subpostmaster pay negotiations]
« The Government does not play any role in pay negotiations between Post
Office Ltd and the subpostmasters who provide access to its services. This is
an operational matter for the company.
[If pressed about the progress of the Post Office Stakeholder Forum]
+ The first phase of the work of this body has recently come to an end, anda
range of public engagement activities have been taking place to solicit the
views of stakeholders and the public in relation to public benefit purpose that
has been proposed. The Government wants to see clear progress towards
mutualisation made by the end of this Parliament
[If pressed about the Second Sight review into the Horizon system
+ The review explicitly confirms that there is “no evidence of system-wide
problems with the Horizon software”. Horizon successfully handles six million
customer transactions every day, and tens of billions since its national rollout
in 1999.
« The interim report makes no comment about the safety or otherwise of any
conviction of a subpostmaster for fraud, theft or false accounting.
« Areview and mediation scheme has been established to address
subpostmasters’ concerns in individual cases.