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Post Office extends deal with DVLA until March 2024

'For the duration of this extension period there will be improved remuneration that will be backdated to 1 April 2023'

The Post Office (PO) has confirmed it has temporarily extended its contract with the DVLA until next March, after previous “ongoing talks” failed to reach an agreement.

Last month, the PO revealed both parties had yet made an agreement as it fought for “fair” remuneration for postmasters. In an update issued this week, the PO explained how it had finally achieved both objectives of ensuring fair remuneration for DVLA transactions, and that associated costs would be covered.

In the message, group chief commercial officer, Owen Woodley, wrote: “For the duration of this extension period there will be improved remuneration that will be backdated to 1 April 2023. This equates to an average increase in remuneration of 81% across all DVLA products and includes International Driving Permits.”

DVLA services enable customers to pay vehicle tax, renew driving licenses, and apply for international driving permits. In April, journalist Victoria Coren Mitchell tweeted that on a recent letter she’d received, the only way to carry out any DVLA services was online. “Sorry, just clarify for me again: what is it I do if I haven’t got a computer?” she said.

Woodley advised postmasters to speak to their area manager if they have any questions about the potential impact of the service withdrawal on their branch.

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