Press release -
Post Office delivers £30 million remuneration improvement for Postmasters
- Post Office shares one-off remuneration payment - equal to 15% of a Postmaster’s March trading in variable remuneration – following successful performance of Post Office’s online business.
- Royal Mail tariff increases plus increased remuneration for handling pre-paid parcels and returns expected to increase mails remuneration by around £12m.
- Postmasters that provide DVLA services benefit from 21% increase in remuneration rates.
- Post Office announces a complementary £3.5 million investment to roll-out high-grade note counters for 2,800 largest banking branches.
The Post Office has today (27 March) announced a package of remuneration improvements for Postmasters worth £30 million for the 2024 / 25 financial year.
Included in the package of remuneration improvements are:
- A one-off remuneration boost, equal to 15% of Postmaster’s March 2024 trading, in variable remuneration. This will be paid in April 2024. Across the network, this equates to a nearly £5 million investment by Post Office.
- An increase in Mails remuneration worth around £12 million as a result of Royal Mail tariff increases and remuneration increases for Royal Mail volume-based products such as pre-paid parcels and returns which will go up by 4.0% in line with CPI.
- A 21% increase in remuneration for Postmasters handling DVLA transactions.
- An average increase of 9.4% on outreach payments to Postmasters who operate mobile vans as outreach Post Offices to take into account the national living wage increase and changes in fuel prices.
In addition, Post Office has announced a complementary £3.5million investment to roll-out high-grade note counters for 2,800 of its largest banking branches. This will help automate the accurate processing of cash deposits.
Nick Read, Chief Executive of the Post Office, said:
“Postmasters are not immune to the current challenging economic environment, and we are acutely aware of the impact minimum wage increases have on their costs. Following a strong performance for our online business, and thanks to Postmasters’ help in building the brand and delivering fantastic customer service, we have again been able to share this success with Postmasters in the form of a one-off payment.”
Operational Excellence Incentive
Post Office has also announced that it is launching an Operational Excellence Incentive.
Back-office activities, such as cash processing and accounting, take a significant amount of time for Postmasters. In recognition of the growing workload for cash processing, in August 2022, Post Office doubled the per transaction remuneration rate for banking deposits, and last April increased all banking deposit remuneration by a further 20%.
To build on this, Post Office is launching an Operational Excellence Incentive to remunerate Postmasters for the time already spent on back-office activities. By carrying out the existing operational requirements for running a branch, Postmasters will have the opportunity to boost total variable remuneration by up to 5% each month. These payments will be based on meeting the requirements for daily cash declarations, cash pouch remittances, cash holdings and monthly trading period accounting.
Post Office has developed the scheme in collaboration with the Postmaster NEDs, Postmaster Regional Forums, Postmaster Experience Director Mark Eldridge, and the NFSP to ensure the scheme works for Postmasters.
The first remuneration payment for the incentive will be made on 30thSeptember 2024. This will be based on activity in the August trading period. Post Office will be sharing with Postmasters more information, training and support guides on the incentive over the coming months.
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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.
