Briefing on the future of the post office network (14.05.07)

The government is expected to make an announcement on the future of the national post office network next week. This briefing sets out the story so far‚ some of the main issues‚ and Age Concern’s key recommendations.

For further information‚ comment‚ interviews or case studies‚ please contact Emma or Helen in the Age Concern England media team on 020 8765 7514 or 020 8765 7515.

What is the situation to date?

Currently the rural subsidy of £150 million per year helps around 8‚000 rural post offices to stay open. This subsidy is due to run out in March 2008 but the government has committed to make “substantial further funding” available until 2011‚ with an expectation that a continuing subsidy will be needed after this. However the government has made it clear from this summer‚ up to 2‚500 post offices will be closed over an 18-month period.

In response to requests from local Age Concerns and individual older people across the country to address the continuing uncertainty of the rural post office network‚ Age Concern England launched its ‘Stamped Out?’ campaign last summer. In the absence of a government consultation‚ the charity carried out its own public consultation on the issue in an attempt to bring to light the concerns of older people‚ the heaviest users of post offices.

In December‚ the government announced there would be a written public consultation on the future of the post office network from 14th December 06 to 8th March 07. Thousands of individuals and organisations such as Age Concern responded. The government’s response to the consultation‚ initially expected at the end of March‚ was delayed until the middle of May.

What does Age Concern think?

Our research clearly showed that rural post offices are a lifeline for many older people‚ providing far more than just a postal service. Many pensioners use their post office as a ‘one-stop shop’ to access their pension and benefits‚ pay their bills‚ get advice and information‚ and meet and socialise with others. We know that many of the same issues apply for older people in deprived urban areas where‚ as in rural areas‚ the post office is an essential part of the community and there are fewer banks‚ so access to cash and benefits is an issue. We are concerned that closures could leave many older people increasingly financially and socially excluded.

The government must develop a positive‚ coherent and sustainable rural strategy‚ and provide a lasting solution for the post office network informed by those who use and depend on it. Current plans for the network do not appear to take factors such as the availability of public transport and the impact on social inclusion into account‚ or go into any detail about how local communities affected by the closures will be consulted. We are very concerned that the 2‚500 closures announced will be a minimum rather than a maximum figure‚ and that decisions will be based purely on the distance to the nearest alterative post office.

Age Concern’s key recommendations

The criteria for restructuring the post office network must include access to public transport‚ which can be as much of a barrier as distance‚ particularly for older people.
The restructuring process of the network must be longer than 18 months to allow time for thorough local consultation.
If a post office has to close the replacement service should be available immediately to ensure no gap in service provision.
The government must put pressure on banks to ensure all bank accounts are accessible through post offices.
The Post Office Card Account (POCA) must be replaced by a better product and must remain post office based.
If a post office must be relocated within another business to avoid closure‚ the same level of expertise and skills of staff must continue to be provided and the services must be in an accessible position.

FACTFILE

Key Age Concern statistics

99% of older people in rural areas consider their local post office to be “a lifeline”
Over half (56%) of over-60s in the countryside fear that post office closures would leave them more isolated
76% of older people are worried about losing essential services if their post office is forced to close
73% feel that they wouldn’t be able to access similar services in their local area
88% would have to make special travel arrangements to reach alternative services

Other key statistics

There are around 8‚037‚ post offices in rural areas
Approx. 90% of rural post offices are subsidised
The rural subsidy is £150 million per year and runs out in March 2008
Only 4% of villages have a bank‚ compared to 60% with a post office
Almost 2‚500 urban post offices closed between 2002 and 2005 as part of a scheme to make the network more viable