Post Offices (POs) face cuts to ATM fees and postage remuneration as part of changes under way in the organisation’s banking and mailings arms.
NFSP president Calum Greenhow warned that the one in seven postmasters with a high ratio of large letters to parcels would lose out through the new mails distribution agreement (MDA) set to come into effect in April 2022. PO chief executive Nick Read had told Better Retailing the MDA would create ‘winners and losers’ but promised ‘transition payments for those that may struggle’.Commenting on Post Office proposals for Mails-related remuneration following its new MDA with Royal Mail, a Post Office spokesperson said: “We have consulted with almost 8,000 Postmasters on a one-to-one basis about what the new agreement with Royal Mail could mean for them. The vast majority will benefit, and overall Postmasters will receive an estimated additional £10 million worth of remuneration compared with the financial year 2020-2021 consistent with market performance. With mails products and services, alongsixe banking services, making up the bulk of Postmasters’ remuneration, we know just how important this is for Postmasters.
“Over the summer we are working through consultation feedback and are providing further support to branches that could potentially see a bigger impact as result of our proposed changes in advance of new rates coming into effect in April 2022.”
Post Office vows to pay external ATM rates for Scottish stores
Meanwhile, several PO retailers confirmed rival ATM firms Cardtronics and NoteMachine had approached them to win their business, amid discontent over PO’s new ATM terms. CWU subpostmaster branch secretary Mark Baker said PO’s new contract was ‘less money for the same work’ for stores with fewer than 10,000 monthly transactions.
The Post Office spokesperson responded: “Last year we committed to save around 1,400 ATMs from disappearing from the High Street following Bank of Ireland’s decision to withdraw from the UK ATM market.
“Initially taking over the Bank of Ireland ATMs commencing in September of this year, we will subsequently replace all ATMs over a two year period, providing Postmasters with a brand-new ATM equipped with the latest cash dispensing technology, enhanced security features and anti-fraud protection. Additionally, we are introducing a new service model that will see improved operational processes.
“We have also reiterated our commitment to maintaining our ATMs as free-to-use, thereby encouraging larger volumes of transactions.”
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