The Post Office network
The Department's role
The Department is responsible for the Government's strategic policy for the Post Office network and for agreeing Post Office Limited's (POL) business plan.
The network
POL, which is currently a subsidiary of the Royal Mail Group, is responsible for managing the Post Office network arm of the business. There are around 11,500 post office branches right across the UK. The vast majority of branches (around 97%) are operated by franchise partners or subpostmasters, who are independent business people. Only a small number of post offices are directly managed by POL.
POL offers over 170 products, which include a range of mails, financial, travel and telephony services. It is responding to changing customer needs by developing new products and services and new means of delivering them.
In October 2010, the Government announced funding of £1.34 billion over the Spending Review period, which will enable the Post Office to maintain and modernise its network and safeguard its future, making it a stronger partner for Royal Mail.
In return POL must maintain a network of at least 11,500 branches, and continue to adhere to the strict access criteria that see 99% of the population live within 3 miles of a post office.
To compete effectively in today’s fast-changing retail environment, the Post Office network needs to change and its renewal must be driven by what customers really want. It needs to offer longer opening hours, quicker service and high retail standards in well positioned and convenient locations. To achieve this, POL will be piloting and introducing new operating models that will improve the customer experience, reduce operating costs and improve the financial sustainability of the network.
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