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From: Carruthers, Henry (Policy Delivery & Private Office)[f i
Sent: Fri 11/05/2018 8:41:41 AM (UTC)
To: Bakshi, Madhav (BEIS)§-
Subject: POL / Tom Cooper Readout
Madhav,
Alex suggested that he wanted this note sharing with all attendees of the last meeting. You ok to send around?
Subject: Tom Cooper / POL Update
Attendees: Alex Chisholm (AC) & Tom Cooper (TC)
Time & Date: 15:00 to 15:30; Tuesday, 3 April 2018
Summary: Short catch-up between TC and AC, focussing on update on Post Office Ltd (POL) business,
specifically after TC’s first Board meeting & post-funding agreement. Both agreed that there are certain
aspects of POL’s business plan that need to be prioritised, and that there are short-term issues that need to be
addressed ahead of longer term options.
1. BEIS POL Policy Sponsorship. Currently lack of named policy responsibility in BEIS makes it difficult to
build momentum behind decisions for POL. AC agreed that it would be cogent to have a POL lead;
perhaps in CCP, albeit noted that Tim Jarvis may not be suitable, as he is already responsible for Royal
Mail. HC: to provide Jaee Samant & Tim Jarvis with a heads up that there will be the expectation for
BEIS policy lead.
2. UKGI POL Resource. TC’s team currently responding to MPs letters and UQs on POL issues. Felt that this is
not appropriate use of UKGI resource, which AC agreed, and should instead be moved to BEIS once policy
responsibly has been established.
3. POL Strategic Options Meeting. Agreed that the meeting due to be arranged to discuss Richard Callard’s.
paper on future strategic options for POL, with BEIS officials, would be a good opportunity for Tom to
raise points about future focus on POL. Agreed that TC would suggest a short agenda to lead the meeting,
to be arranged for w/c 23 April.
4. POL Financial Independence: TC updated AC that he was exploring alternative models to enable POL to
be more financially independent. This included banks potentially paying a contribution to use POL
franchises as their local points of access to local communities, while organisations are downscaling and
increasingly moving to digital methods of delivery. AC expressed that this was potentially an idea worth
investigating, especially in context of reductions to number of local branches.
5. DWP & POCA Contract. TC noted that the POCA contact with DWP is due to require renewal over the next
few years. TC recommended that BEIS may wish to encourage POL to make an offer to provide a digital
solution, which could be worked up with the new funding provided. Recommended that this is presented
as a saving to DWP when put forward as a contract.
6. POCA Accounts. TC noted that POL currently receive payments for interest on POCA Accounts. Agreed
that as these accounts are for vulnerable consumers, should be proactively addressed before the story
breaks. Options to be seen proactive, either providing money to DWP, setting up an NS&I for the
individuals in question.
7. Verify. Digital identification tool developed by POL could be transformative to business; derived from
start-up built internally from within the company; TC noted that the individual in charge of the
programme may require some business mentoring. AC recommended Ken Olisa as suitable candidate,
and offered to put TC in touch. TC has since provided draft email to send to Ken.
8. POL Cabinet Paper. AC recommended that areas to be addressed with POL are worked into a potential
paper for Cabinet. This should provide a core case for the network, beginning with the fact that POL is
increasingly in a strong position, has been given a sizable amount of funding by UKG, what it is doing to
help itself, benefits of stimulus of eCommerce, Financial Inclusion & DWP. Process of working up Cabinet
Paper: Discussion during POL Strategic Options Policy Paper, once a draft paper agreed and cleared with
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AC, to be submitted to Minister Griffiths; following Minister Griffiths’ clearance, to be submitted to SoS,
with the proposal that it is treated as a Cabinet paper.
9. Project Investment Committee Scrutiny of Funding. TC noted that PIC have expressed that they wish to
review the business case for POL funding again, they are also seeking external assurance from IPA for
each quarter. AC noted that his clearance of the funding, while requiring certain assurances of due
diligence, did not include requests as detailed. Felt that PIC are working to their own momentum; AC
agreed that this appears to be too heavy handed, and instead, perhaps UKGI & BEIS could offer to
establish a small project board to work in place of PIC.
10. Consumer Payments. POL intend to acquire Payzone, the consumer payments company, for £15m. Given
POL, Payzone and Paypoint only three players in UK market, will likely result in scrutiny from CMA.
Nonetheless, would provide POL with a physical and digital network.
11. Update on POL Business: New Non-Executive appointed, Chief Operating Officer of Lloyds of London.
Litigation, Horizon System in which a post master is being subject to accusations of fraud. Currently no
statement of the claim, but given Partner Organisation sponsorship structures, BEIS could be required to
foot the settlement, which could be as high as £220m. AC noted presents another example of BEIS
bearing responsibility for POL when they should not. AC recommended that during next meeting consider
how to steer responsibility for this to HMT.
Thanks
Henry
Henry Carruthers
Private Secretary
Alex Chisholm, Permanent Secretary, BEIS
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