Summary
The report, 'Oversight of the Post Office Network Change Programme (HC 832)' finds that in 2007, the Department for Business, Innovation and Skills (BIS) and Post Office Ltd agreed a £1.7 billion strategy to make the network financially sustainable, including a £150 million annual subsidy. One element of this plan was the Network Change Programme whereby up to 2,500 post office branches were to be closed.
The Programme was expected initially to cost £176 million, mainly in compensation to sub-postmasters. Annual savings of £45 million were forecast but the Programme was expected to generate a £17 million loss in the 2006-07 to 2010-11 period of the strategic plan.
The decision as to the number of post offices to be closed focused principally on the size and spread of the network that could be obtained for a particular level of funding. The series of undertakings designed to protect post office users during the closure programme were largely met.
Criticism of the local consultation phase of the programme included:
- Too little time had been allowed for consultation
- The decisions had already been made
- The public were not being listened to properly.
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