Today (November 4) the Post Office has announced that the fees postmasters receive for providing Post Office services in their branches in 2020/21 will be 10 per cent higher than in 2018/19.
The move forms part of a major new drive to reset the relationship with postmasters, to reflect a much improved commercial partnership between the Post Office and the thousands of individual business owners, and larger multiple partners, who make up the 11500 strong-Post Office network.
Commenting, Group CEO of the Post Office, Nick Read, said: “Post Office branches are the backbone of our business and the heart of their communities. I am determined that the commercial partnership we enjoy with them genuinely reflects that and I am delighted to be able to begin that process through today’s announcement. The retail landscape is tough, and the dedication and hard work postmasters show day-in, day-out, must not only be acknowledged, but be properly remunerated too.
“We are putting our customers and the postmasters who serve them front and centre of our future business. Our recent agreement with 28 UK banks to provide everyday banking services is evidence that we are able to negotiate great deals for Post Office. I am determined that we share the benefits appropriately with our partners, postmasters wherever they are, the length and breadth of the UK.
Postmasters will receive increased fees for providing everyday banking services; additional payments to smaller, rural Post Offices for the services they provide; increased payments for handling digital passport applications; and increased payments for handling online travel currency purchases that are collected in a branch.
£37 million is comprised of a £20m increase during 2020/21 and the £17m per annum already announced in August 2019. The changes announced in August 2019 included increased transaction fees for handling banking deposits in all branches, as well as increases to fixed payments for Community branches which are often the last or only shop in the village.
The Post Office is also promising that every postmaster will also benefit from a dedicated, area manager to support and help them in all aspects of their businesses: to drive footfall into their shops, increase their revenues, and to keep offering a great service to their customers.
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