Post Office provides Postmasters with remuneration support for June

• Post Office previously guaranteed that all independent Postmasters received 100% of their remuneration in April
• All independent Postmasters guaranteed to receive 90% of their remuneration in May
• New announcement that Postmasters, including those who operate multiple branches, to receive 15% top-up of variable remuneration in June generated from May’s trading

Postmasters will be able to benefit from a 15% top-up of their variable remuneration in June, the Post Office has announced.

The Post Office had previously announced that all independent postmasters would receive 100% of their remuneration in April and 90% in May. The guarantee covered both their fixed and variable remuneration. The rate of remuneration reflects previously announced increases that came into effect on 1 April. All branches that are currently receiving fixed remuneration, will continue to do so in June.

Branches operated by independent Postmasters that are struggling to remain open or to open at all in May and are not eligible for coronavirus financial support from the UK Government may receive additional support from the Post Office in the form of a hardship payment to provide immediate relief.

Nick Read, Chief Executive at the Post Office, said:

“I am grateful to Postmasters for doing all they can to keep their branches open and serve their local community during the Covid-19 pandemic. Being able to guarantee April and May’s remuneration has been vital in providing stability for our Postmasters. The support on offer for June allows Postmasters to plan ahead. No Postmaster should feel like they are unable to keep trading or re-open their branch as a result of coronavirus which is why we will provide targeted support for these branches.”

The Post Office’s 11,500 network includes a mixed estate of main, local and outreach formats. Nearly 8,000 main and local branches are operated by independent agents that also offer a wide variety of complementary essential and non-essential retail. April and May’s remuneration guarantee was irrespective of whether branches were open or not, or had reduced their hours. The 15% top-up of variable remuneration for June will be available to all agent branches including multiples, and will be based on May’s trading for that branch. This includes taking into account increased remuneration that came into effect from 1 April 2020.

The top-up in remuneration is part of a package of support provided to Postmasters across the UK in order to help deal with effects of the coronavirus pandemic. This has included:

• The installation of Perspex screens at all independent and directly managed branches across the UK.
• The provision of hand sanitiser and gloves to Postmasters and their branch staff.
• Posters for branches to display advising social distancing and regular hand washing.
• Markers to place on the floor to highlight the need to keep two metres apart.
• The latest information on financial assistance schemes launched by HM Treasury and how to apply to benefit from these schemes.

The Post Office has previously announced details of two access to cash products – ‘Fast PACE’ and ‘Payout Now’ have been made available to the UK’s banks, building societies and credit unions. These products can be offered to their customers who are self-isolating and require cash. The Post Office has also announced details of a new partnership with the Department for Work and Pensions to deliver cash to Post Office Card Account holders in England who are shielding during the coronavirus pandemic.