Campaigns and Lobbying

This submission is made on behalf of the National Federation of SubPostmasters (NFSP):, a professional not-for-profit trade association representing post office operators, responsible for approximately 8,300 post office branches throughout the UK.

Read the submission here.

The NFSP submitted its response to Ofcom’s consultation today (10 April) on behalf of the membership.

The ‘Review of the universal postal service and other postal regulation’ consultation, was published following consumer research and stakeholder engagement with consumers regarding proposed changes to the USO.

These proposals included:

• The removal of the requirement on Royal Mail to deliver Second Class letters six days per week and allow it to deliver such letters on alternate weekdays (Monday to Friday)
• Delivery of First Class letters would be maintained, and will continue to be delivered next day, six days per week.
• Decreased levels of service requirements for the letters market
• The proposal of ‘tail of mail’ targets, resulting in 0.5% of customers not receiving
• First Class mail within three days
• Second Class mail within five days

Our submission highlights that all proposals appear to be centred on the financial considerations of RM, and not weighted evenly to public needs and interest. RM’s monopoly market should not be allowed to lower all standards of mail while increasing the price of a First Class stamp, to the benefit of their parcels market.

We repeated our request for proof of postage for letters, compensation paid when items are not delivered, no ‘tail of mail’, a tracked letters service within the USO, more research into the knock on effects of all industries impacted by these proposals, and service levels to remain the same or to be increased if prices increase.

DVLA

The Driver Vehicle Licensing Agency (DVLA) contract with the Post Office was due to expire in March 2024. This loss is one of many issues which will result in the closure of post offices across the UK.

Why is this important?

Six million people use the Post Office network to access DVLA services per year. Half use cash as a payment method, linked to the cost of living crisis. As banks exit the High Street and communities across the UK, there is a growing requirement for a national infrastructure that can provide vulnerable customers with essential face to face services. The existing network of privately-owned small businesses that make up the Post Office is the obvious solution to support these vulnerable groups.

Campaign

In the summer of 2023, the NFSP launched a petition campaign to prevent Government removing DVLA services from the Post Office from April 2024. 

Campaign toolkit

To support the campaign we put together a toolkit to help postmasters to get involved and spread the word. 

Downing Street

The signed petitions were presented to Downing Street on Thursday 2 November by four Postmasters, the NFSP CEO and Public Affairs Manager, and Marion Fellows MP. You can read more about it here. 

Outcome

On 18 December 2023, it was announced that the Driver Vehicle Licensing Agency (DVLA) and Post Office Ltd (PO) have signed an extension to their contract. Read more about it here. 

Restrictions Policy

The Restrictions Policy is a clause that resides in every postmaster’s contract, which prohibits postmasters from transacting any work that conflicts with products and services that Post Office Ltd (POL) provide. When the clause was put in place, it included no timeline or review process, which resulted in the policy being undebated for years  

During the 2023 annual NFSP Conference, the Restrictions Policy was debated amongst members. The debate raised some serious questions as to what the network would look like without the policy in place, and what sort of entrepreneurial freedom it would bring to postmasters.  

Remuneration

Postmaster remuneration has been decreasing in line with inflation and the cost of living. 70% of recent members report earning the equivalent to the National Minimum Wage or less. To highlight how this impacts on the state and viability of the network, the NFSP regularly meets with government and stakeholders to highlight this issue using insights gained from our monthly remuneration survey.

HtP

Following the closure of the Network Transformation programme in 2018, PO now hold a Hard to Place (HtP) register which covers offices that have not found a Potential New Postmaster (PNP) due to location, declining footfall and low remuneration etc.

These HtP offices receive a fixed remuneration from PO and have a year-to-year agreement to continue with this. The NFSP pushes to extend this agreement every year while highlighting the state of limbo faced by HtP postmasters.

Government services

Government services have been consistently taken from post office counters over recent years, despite being called ‘the front office of government’ in the past. Without these footfall drivers, customer visits have been declining year on year (20 million customers per week in 2020, now down to around 10 million per week).

Remuneration for most PO services barely covers the time, therefore independent business are ‘propping up’ a wholly government-owned business. Recent research found that 75% of respondents believe that their retail side subsidises their post office business.

To ensure network viability for the future, we need footfall drivers, and these include government services. The NFSP regularly asks government to bring  services such as one-year passports and driving licences back to the counter.

Reduced Banking Deposit Limits

Business cash deposit limits, set inline with  Financial Conduct Authority (FCA) recommendations, have recently been reduced by a number of banks. These limits impact on the amount personal and business banking customers can deposit at post office counters, with bank communications pointing towards their local bank branch as an alternative.

However, following a long-term bank branch closure programme, numerous branches that have closed, with many more are scheduled to close over the coming months.

Many smaller businesses are located in areas without a local bank branch, therefore often the businesses will need to reduce the amount of cash they themselves accept, with in turn impacts on the local area’s access to cash, or transport the cash themselves which raises security concerns.

For a complete briefing on how we are campaigning about this issue, please see HERE.

Support our campaigns

• To write to your local MP, please find a template letter HERE. 
• For a letter for you to give/email to your customers so that they can write to their MP to show their support, please find a letter HERE
• For a letter for you to give/email you local business so that they can write to their MP to show their support, please find a letter HERE
• If you are unsure who your local MP is, you can find out HERE.

A campaign to encourage the public to avoid buying online postage and to visit their local post office.  

We want to encourage customers in your local area to buy postage stamps from post offices instead of online. We also want to highlight the sense of community and vital services that your business brings to your local area.  

For further information on the campaign please read our explainer article

Get involved 

We’ve put together a campaign toolkit full of resources to help you get involved.  

These materials can be downloaded and put up in your branch or can be shared on your social media channels. Don’t forget to use the hashtag #loveyourlocalpostoffice: 

 View our campaign toolkits HERE. 

LOCAL PRESS

If you would like to alert your local community via the local press, of letters sent to your MP or issues facing the network, please email communications@nfsp.org.uk who will be happy to help

SOCIAL MEDIA

We would encourage members to post the PDF versions of letters sent to MPs on their social media so customers are aware and can actively engage in calling for change and support for postmasters. If you would like any social media advice or support, please email communications@nfsp.org.uk

View here to read the NFSP’s submission for the Access to High Street Banking in Wales.