Press release -
Post Office delivers £20 million boost to postmasters ahead of Christmas
- Post Office has accelerated the delivery of a £20 million boost to postmasters pay packets in December
- The £20 million boost to postmaster remuneration comes as Post Office moves quickly to deliver on its ‘New Deal for Postmasters’ following Transformation Plan announcement on 13 November
- Postmasters, like all retailers, face a challenging retail climate with increasing costs to trade on the high street
Following a Ministerial announcement by the Postal Affairs Minister Gareth Thomas MP, the Post Office has today (17 December) confirmed that it has accelerated the delivery of its first additional remuneration payment to postmasters with a £20 million boost to postmasters pay packets in December.
The £20 million boost to postmaster remuneration comes as the Post Office moves quickly to deliver on its ‘New Deal for Postmasters’ following its Transformation Plan announcement on 13 November.
Both independent postmasters and Post Office’s retail partners that operate branches on its behalf will receive the top-up payment ahead of Christmas. The top-up payment will be based on both the standard fixed and variable remuneration the branch received in November.
Neil Brocklehurst, Post Office Acting CEO, said:
“As we implement our ‘New Deal for Postmasters’ we are fast-tracking payments to postmasters in recognition of the challenging trading conditions they are currently experiencing. Our customers want services in the run-up to Christmas that are convenient and in-person, and that’s what our postmasters and retail partners offer. We want our postmasters to focus on what they do best, serving their communities, and not to be worried about making ends meet”.
“Postmasters and their teams are handling close to 15 million customers coming through their doors every week in the run up to Christmas. Across our 11,500 branches customers can quickly and conveniently deposit or withdraw their cash and access a wide variety of parcel collection and delivery services as well as pay bills or top up their gas and electricity metres.”
Post Office Minister Gareth Thomas said:
“This government is committed to strengthening the Post Office and making sure postmasters receive the income they deserve for the vital services they provide for communities across the country.
“That’s why we are providing a further £37.5 million of network subsidy this financial year which is essential to stabilise the organisation. I welcome the Post Office’s one-off payment this month to postmasters, which will go a long way in easing the burden they face ahead of Christmas.”
Calum Greenhow, Chief Executive Officer for the National Federation of SubPostmasters, said:
“The NFSP has long campaigned for a significant increase in postmasters’ remuneration to reflect the value of the vital public services that postmasters deliver to communities.
“We know that right now many of our postmasters are struggling and are very worried about their ability to pay bills and provide for their families.
“This £20m as a one-off payment in December is not only well timed but very much required. We look forward to working with the government and Post Office to deliver a further £100m uplift in annual remuneration by March 2026.”
Subject to Government funding, the Post Office’s Transformation Plan provides a route to adding an additional quarter of a billion pounds annually to total postmaster remuneration by 2030 by dramatically increasing postmasters’ share of revenues.
As part of the plan, postmasters can expect up to £120m in additional remuneration by the end of the first year of the Plan, representing a 30% increase in revenue share. The ambition is to double average annual branch remuneration by 2030 with the right market and regulatory landscape.
Postmaster engagement in the running of the business is to be strengthened with a new Postmaster Panel and Consultative Council being established.
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About the Post Office
- With over 11,500 branches, Post Office has the biggest retail network in the UK, with more branches than all the banks and building societies combined.
- Post Office is helping anyone who wants cash to get it whichever way is most convenient. Partnership with over 30 banks, building societies and credit unions means that 99% of UK bank customers can access their accounts at their Post Office.
- Cash withdrawals, deposits and balance enquiries can be made securely and conveniently over the counter at any Post Office; and the biggest investment by any organisation or company in the last decade is being made to safeguard 1,400 free-to-use ATMs across the UK.
- Post Office is simplifying its proposition for Postmasters with a focus on its cash and banking; mails and parcels; foreign exchange; and; bill payments services.
- Research has found that visits to the Post Office help drive another 400 million visitors to other shops, restaurants and local businesses equating to an estimated £1.1 billion in additional revenue for High Street businesses.
- 99.7% of the population live within three miles of a Post Office; and 4,000 branches are open seven days a week.
