NFSP Statement on The Green Paper

The Green Paper was published on Monday and outlined proposals for a more financially sustainable post office network that is less reliant on government subsidy.

A clear theme is that ongoing government support for Post Office Ltd (PO) is considered unsustainable and must come to an end.

Chapter One focuses on context. It outlines the long-term decline in customer volume and revenue across core services, including mails, banking, government services, and bill payments.

Chapter Two focuses on government’s vision for PO, which is a financially sustainable network with reduced reliance on government funding. A preference is for full-hour branches alongside a retail offering, which supports high streets and local economic activity. A high proportion of consumers indicated that it was important for a post office to be nearby, convenient and available when needed. With around one-third of branches located on high streets, the government sees the network as an important community anchor.

Chapter Three focuses on ensuring PO is fit for the modern age. The post office network has declined from around 20,000 branches 40 years ago to approximately 11,600 today, following successive closure programmes and network transformations. This mirrors the decline in Royal Mail’s (RM) letter volumes - from 20 billion in 2005, to 10 billion in 2011 and a projected six billion by 2029.

The government remains committed to the Universal Service Obligation but does not support a re-merging of PO and RM. Instead, it proposes a multi-carrier mail solution, positioning PO as a convenient, neutral hub for various operators.

The decline of cash is another trend: cash accounted for 60% of transactions in 2008 but fell to 12% by 2023. It is forecast to drop to just 6% by 2033. While the social value of the post office network is estimated at £6.5 billion, advances in technology continue to shift how people access services.

Chapter four outlines three potential policy directions for PO’s network structure:

• Maintain government’s existing requirements, including a minimum of 11,500 branches and geographical access criteria
• Greater flexibility would be allowed - for example, replacing full-time, full-service branches with lower-cost models like Drop & Collect when closures occur.
• Maintain geographical access criteria but remove minimum branch requirement
• Loss-making branches would be allowed to close without a replacement
• Develop new requirements in place of existing criteria designed to better match local needs

• Review what counts as a post office

Chapter five focuses on reforming governance and long-term ownership requirements of PO.

At present, government has a golden share in PO, which provides it with certain privileges such as:

1. Appointing the Chair and board members
2. Reviewing strategic plans
3. Setting salary and bonus metrics
4. Maintaining ministerial oversight

Recent failings are due to a lack of focus on postmasters, with the Horizon scandal being an example. However, the appointment of PO Non-Executive Directors and Postmaster Experience Directors are seen by government as evidence the culture within PO is changing. Added to this is the new deal for postmasters via the transformation plan.

Government does not want to bring in different ownership models or any independent governance structures.

Taking the last 40 years into account, postmasters have suffered and endured so much as has been laid bare by the Horizon Inquiry. A significant way to redress this cultural attitude towards postmasters is to recognise the collective investment you all have in the network. Disappointingly, the Green Paper puts forward a view that this is not supported by government. ​

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The Horizon scandal showed just how successive governments and leaderships of PO enabled a culture that led to so much harm being done to postmasters. The Inquiry Volume One Report highlighted that it is possible that as many as 13 postmasters may have taken their lives due to flaws in the Horizon software, while another 59 individuals contemplated suicide.

Therefore, if the past is any indicator that the governance by successive governments and leaderships of PO was responsible for a situation such as the Horizon scandal, then going forward a new governance structure has to be introduced. Providing postmasters with a share in the company they have invested in, and also external independent oversight surely has to be the way forward.

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From April 2011 to March 2024, the government provided PO with £3.8 billion of funding yet most postmasters would challenge whether that money has been spent delivering a business and a network fit for purpose. We therefore ask: Has £3.8 billion of taxpayer money been used effectively? And is the status quo of oversight from government and PO the right way forward?

An example of this wastage is the hundreds of millions spent on the NBit platform that has now been shelved.

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​As your fellow colleagues, the NFSP asks all postmasters who seek to respond to the Green Paper to make it clear that part ownership is a fundamental requirement to any attempt to restore trust in both government and PO.​ This will ensure postmasters have equality and equity in the business which is lacking at present.

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We encourage all Regions to work together and gather feedback from postmasters. This insight will shape the NFSP’s formal response.

Postmasters may also submit their own individual responses. The NFSP will be conducting consultations and surveys in the coming months to support this process.

To get involved or share your views, please contact: ruth.buckley-salmon@nfsp.org.uk