Tim Allen’s Postmaster Ponderings: Nigel Railton’s Transformation Plan announcement

“The Post Office has 360 years of public history. I want to restore pride in working for a business with a legacy of service rather than one of scandal… Bold, urgent action is needed and putting postmasters at the center of the business is the heart of the plan.” - Nigel Railton Interim Chair of Post Office Ltd on broadcast to postmasters at 9am on Wednesday 13 November 2024

Nigel Railton had invited Elliot Jacobs, a Postmaster and NED Director of Post Office Ltd (PO), to introduce a 15-minute speech that sets out the ambition for the biggest set of changes in modern Post Office history.

The purpose of the speech was to officially and publicly fire the starting gun on huge change and reform of PO following his submission of the Strategic Review to government.

In his speech, Mr Railton said:

• PO had an exciting future (subject to government support).
• By 2030 he wanted to see an extra 250 million pounds a year in the hands of postmasters.
• An urgent fresh start is needed. The latest Budget had continued to drive up postmasters’ costs on top of 10 years of decline.
• There was a need to overhaul our in-branch technology and a centre with a cost base that is far too high.
• PO were culturally floored, the front line had not been prioritised and he would change that.
• He recognised that most postmasters lose money on operating the post office element of their business and that was unacceptable.

He said his plan would be a success because:

• Government were committed to support change. A consultation paper would be launched by government in 2025.
• He had new leaders with the drive and experience to drive the change.
• Sir Wyn’s Horizon Inquiry is drawing to a close and allows the business to think about looking forward.

At the heart of the plan is a Transformation Plan putting postmasters at the centre of the business which can’t happen without a big increase in postmaster remuneration. He said this would be £120M extra in 2025/26 rising to £250M within a few years. In practical terms this first year could be a 30% increase for postmasters on where they currently are.

Post offices need to protect and grow the long legacy of community support for the next generation and meet the needs of society in their daily lives and provide access to services for the digitally excluded.

He then set out the tests for measuring their success in delivering his plan:

• They need to transform our share of post office revenues and deliver higher remuneration.
• The Post Office has to have sustainable and solid financials for the Centre to support the front line.
• To deliver an enhanced service to the public by providing access to government and business that people will want to use.

How will they do this? There are five pillars for success said Mr Railton:

• He will double down on getting the right services into post offices e.g. banking, new products, effective marketing raising public awareness of services and ensuring online product revenue went to the mission of supporting physical post offices.
• He wants PO to be managing 500 Bank Hubs by 2030.
• He wants to have an honest conversation about the loss-making parts of the network.
• Technology in branches needs to be modernised. This would be done gradually, there would be no “Big Bang” moment.
• PO would have a new operating model. He would “right size” the business and have talent in the right place to support postmasters.
• A new relationship with postmasters would be forged.

We can expect to see the plan accelerated after the busy Christmas period, but some bold and urgent action would start now, and the postmaster voice would be strengthened. The plan, said Mr Railton, was a five-year ambition to deliver a new deal for postmasters and Strategic Partners. It was an achievable plan. Everyone in the organisation could expect to be treated fairly and with respect as the changes took place.

The Post Office has a 360-year history and this legacy of service was there to be built upon.

Mr Railton concluded by saying that he and the organisation are ready to deliver this new deal for postmasters. Let’s hope he’s right. Whilst the cost and waste in the organisation have been laid bare by the Inquiry there is also a big operational part of the centre that we need to keep cash and stock flowing, address daily problems and keep the systems we use operating.

Fingers and toes are crossed, here we go.

Tim Allen

Kington Main

This article is the individual ponderings of a postmaster and does not necessarily reflect the views of the NFSP but is the sort of communication we receive or hear that in turn is reflected in our future policies/actions.