UK postmasters to receive 10% pay increase

UK Post Office postmasters are to receive a 10% increase in fees for providing Post Office services in their stores. This follows a six month review into postmaster remuneration.

According to the Post Office this will add £37 million to its expenditure on postmasters. £20 million of this will come during the next financial year (2020/21) and the other £17 million was announced in August 2019 from increased transaction fees for handling banking deposits as well as increases to fixed payments for Community branches which are often the last or only shop in the village.

Commenting, Group CEO of the Post Office, Nick Read, said: “Post Office branches are the backbone of our business and the heart of their communities. I am determined that the commercial partnership we enjoy with them genuinely reflects that and I am delighted to be able to begin that process through today’s announcement. The retail landscape is tough, and the dedication and hard work postmasters show day-in, day-out, must not only be acknowledged, but be properly remunerated too.

“We are putting our customers and the postmasters who serve them front and centre of our future business. Our recent agreement with 28 UK banks to provide everyday banking services is evidence that we are able to negotiate great deals for Post Office. I am determined that we share the benefits appropriately with our partners, postmasters wherever they are, the length and breadth of the UK.”

The National Federation of SubPostmasters have released a statement to say it welcomed the increase. NFSP CEO Calum Greenhow said: “To Post Office’s credit, they have listened to the NFSP as the collective voice of subpostmasters. But the work doesn’t stop there. It is imperative that we anticipate and adapt to future changes in the marketplace to ensure that subpostmasters are equipped and incentivised to grow their footfall and income. That is the only way we will be able to guarantee the long-term success of the overall business. This year we have looked to stabilise, next year and beyond we can look to sustain and grow.”

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