Remuneration increases to include Banking and Travel Money

Remuneration increases to include Banking and Travel Money

We’re delighted to announce that we’ve earmarked a further £20 million for increases in postmaster remuneration. This follows work involving the NFSP, postmasters and commercial partners, looking at all aspects of remuneration.

The changes will start from 1 April 2020.

We’re looking to increase remuneration in the following areas:

Banking transactions, including a significant increase for withdrawals and a further increase for deposits. This builds on the fantastic news about the renewal of the banking framework and the announcement about Barclays’ change of mind around continuing to allow customers to withdraw cash from Post Offices.

We know many postmasters are concerned about remuneration for Travel Money services. We’ve listened to this and are planning to increase remuneration for currency purchased online and collected in branch so it’s the same as in-branch purchases. We’re also increasing the remuneration for Travel Money pre-orders. 

We’re planning to increase remuneration for digital passport applications to bring it in line with remuneration for the paper Passport Check and Send service in branch, as well as increases for Special Delivery transactions for Post Office Local and Community branches.

Recognising the valuable role that some smaller, mostly rural Post Office Local branches play in serving their local communities, we’re proposing additional payments for around 1,000 branches that fall into this category.

These increases are in addition to the £17 million worth of increases we have already announced in 2019, making a total of £37 million extra for postmasters announced in the current financial year. This equates to a 10 per cent increase in postmaster remuneration from 2018/19 to 2020/21.

We’ve already introduced a significant increase in remuneration for cash deposits – the fastest growing banking transaction – and one of the early outcomes of the remuneration review was to bring that increase forward by two months to August 2019. We also increased payments to postmasters who still receive fixed remuneration, mainly our Community status branches, as well as increasing remuneration for some Mails transactions and Mailwork services and those running outreach services.

Nick Read, Group Chief Executive Officer, said: “I’m delighted to make this announcement today and I want to clearly signal that remuneration is critical to the business relationship we have with postmasters. Customers and postmasters will continue to be at the heart of our future business. Continued commercial success is vital - the banking framework is clear evidence of this; we were able to negotiate a great deal for Post Office and share the benefits with postmasters.

“I have visited many branches in my first six weeks as CEO and I’m so impressed with the commitment and passion I see among postmasters and their teams, which underlines how important it is to create an environment where your businesses can thrive. I’m really clear that this is a first step and there’s more to be done to change the way we work with you so that we fully recognise your role as trusted commercial partners.

“I will soon be sharing more with you about my first impressions and about our wider strategy for growth, and will keep you updated as that takes shape in the coming weeks and months.”