Serving Quality

Post Office Counters

The Future

The Post Office today

Integral part of community life in the UK with around 14,500 offices• 480 Crown Offices (publicly owned & run)

• 14,020 Sub post offices (urban & rural)

28 million adults visit a Post Office every week 97% of the population visit a Post Office

every year 94% Population live within a mile

of a Post Office

Post Office today

Serving diverse communities• Government services (passports etc),

• Benefits and pensions payments

• Banking, savings and financial services

• Bill payments

• Mail services Many offices incorporate additional services

to maintain small business income and serve communities

Social role of the Post Office

The Post Office network is a unique national asset with more outlets than any other retailer

Over 4.3 million people use the Post Office Card Account to collect pensions and benefits at the Post Office

Many offices are based in deprived or remote areas where other businesses no longer operate

Social role – financial inclusion

More branches than all the high street banks put together

Branches in many areas where banks closed years ago

60% of banks allow transactions through the network 2.8 million Post Office Card Account users don’t

have a bank account Unique public ‘trust’ (Treasury and Trade & Industry

Committees both highlighted this important factor)

Social role - local economy

Vital part of local economy – Case study – Manchester (New Economic Foundation study 2006)

• Provide cheap and accessible banking to small businesses (i.e. cash depositing)

• Every £10 earned by Post Office there was £16.20 generated for local economy

• Local Impact Model (LIM) estimate loss of a single office closure on the local economy is £270,000

• 60% of small business said the impact of closure was significant on their takings

Urban dimension

Post Offices generally mentioned in connection with rural community but they play key social role in urban communities

Sustaining community cohesion – Case study; Manchester (New Economics Foundation)• 60% of Community surveyed said that closure would

have a substantial impact

• Loss of urban community meeting place

• Loss of main non governmental agency assisting the vulnerable completing government forms

Urban dimension

Urban Post Office customers • 33% From deprived communities

• 10% Carers

• 14% Unemployed

• 7% Long term sick or disabled

• 20% of customers obtain services on behalf of family members

Social role: Urban Impact of closure

Loss of urban Post Offices has large impact• Eight urban closures for every rural closure in past two

years

• 1 in 6 of urban closures in deprived areas Urban offices sustain communities on a

‘tipping point’ from becoming ghost towns

Importance of Crown Offices

Crown Office network an integral part of Post Office Ltd five year business plan • Network of ‘high spec’ flagship stores

• Provide trial sites for new products and services (successful free ATMs trial etc)

• Offer full product range

• Highly trained staff

• Generate disproportionately large amount of income for Post Office Limited

Importance of Crown Offices

More customer orientated• Postcomm & Postwatch MORI market research

demonstrated this.

Provide secure, well paid, unionised employment.

Most serve large urban deprived communities

The crisis facing the network

Financial crisis• Year to the end of March 2006 Post Office

Limited reported an operating loss of £111m

Decline of network over last 25 years• 32% of Offices have closed since 1986

A reduction of branches from 21,000 in 1984 to 14,000 today

Why the crisis?

Transfer of payment of pensions and benefits to Direct Debit (banks & building societies) – loss of £268m in Government revenue as a result.

Loss of a number of Government contracts• TV Licence contract to Pay point

• Tenders to conduct first time passport interviews (at 69 sites) to private sector

Why the crisis?

Post Office does not receive the commercial rate for Government services • Trade & Industry Committee (ninth report)

• David Mills, former CEO of Post Office Limited

Increased accommodation costs in urban areas

Uncertain future makes forward planning difficult

Challenges for the future

Key challenges mean that the network is now at a crossroads

Social network payment will not cover the financial shortfall Post Office Limited claim they can only operate 4000 offices on a premium commercial basis

Potential loss of many Crown Offices to franchises • Service ethos lost

• Low pay employment

Government Proposals Government funding will be provided over the next five

to the sum of £1.7 billion (including £300 million already allocated for the next two years as part of the social network payment). This will be divided into the following

• Continuation of the social network payment (£750 million)

• Funding for strategic adjustment and improvements to the network

• Funding for cost reduction programme (financial settlement for outgoing Postmasters and mistresses)

Government proposals

Introduction of new access criteria for the national network. These are based on the recognition that the Post Office fulfils a vital social role.

Replacement for the Post Office Card Account to come from March 2010. This will be nationally available although its operation will be put out to competitive tender.

Government proposals A closure programme of up to 2500 branches

commencing from the summer of 2007 and completed within an 18 month period

Modernisation of Crown Office network in order to ensure it is profitable

Closure of a number of Crown Offices and continued franchising to experienced retailers

New outreach locations to provide mobile counters to remote communities

Government Proposals Develop the commercial opportunities for the

network amongst other mail operators, Internet companies.

Installation of 4000 free to use ATMs in Post Office branches

Conduct an investigation into what role Local Authorities and the Devolved Administrations (Scotland, Northern Ireland and Wales) can play in influencing how postal services are best delivered in the future.

The CWU vision – a prosperous and secure future

It is right that the social value of network ha been recognised but it must be supported by Government• Network has enormous potential

• No network in the world has achieved stable and sustained profitability

• Proper sustainable public funding is necessary to maintain the network at its current size.

The CWU vision – Proper funding and a Universal bank Sustainable and adequate state funding

provided to the Post Office• Social network payment extended to include additional

funding for urban deprived network Commitment to universal banking realised

through the Post Office• Developing a universal Post Office Bank Account

(great success La Poste) to be run and operated by Post Office Limited as a more functional replacement for the Post Office Card Account

• Extend number of services offered through the network

The CWU vision – A portal for government services

Develop network as a portal for central and local Government services• ‘One stop shop’ for national government

services

• Administer Local authority services via network

The CWU vision - Fair access criteria

Ensure that all communities are within easy reach of a Post Office taking into account• Transport links

• Distance

• Fair assessment of Social deprivation

The CWU vision – devolution and local accountability

Enhanced role for the public and local communities in the future of their Post Office

• Duty to engage public in future strategy of the network

• Strategic decisions subject to regional accountability

• Increase consultation process on closures to three months and place a duty on Post Office Limited to meaningfully community consider counter cases

Protect our Post Office Campaign

Major campaign of key stakeholders• High profile public campaign

• Lobby of parliament and regional assemblies

• National petition

Submissions to DTI CWU political campaigning and influence

Contacts for further information

National campaign information• nchilds@cwu.org

• Nick Childs: 020 8971 7484 / 07764 656 148

Regional press contacts• Liam Murphy: 07778 895 711

(Northern Ireland, North, Scotland)

• Geoff Pool: 07710 488 320(London, South East)

• Chris Roche: 07717 436 759(Midlands, South West, Wales)