The Post Office (PO) has promised branch owners a combined £17m payment boost across April and May, equivalent to around £1,500 extra for the average site.

In his speech at the PO’s Postmaster Conference on 4 March, interim PO chair Nigel Railton announced the uplift and was optimistic that more increases would follow.

The extra £17m, equivalent to a 25% year-on-year remuneration increase will be paid out based on each branch’s performance, the same as December’s £20m branch pay bump.

The move will kickstart the new 2024/25 financial year for the PO in which it has promised branch owners a combined £100million pay uplift. Explaining the PO’s path to the remaining £83m of the increase, the interim chair said there would be ‘incremental announcements over the next 12 months’ as new agreements with banks, government departments and other partnered firms are signed.

Update on government funding for Post Office expected soon

The strategy represents a U-turn on outgoing CEO Nick Read’s policy of all changes to branch pay being announced at once as part of an ‘annual review’.

One of Railton’s incremental announcements will be on additional government funding. Railton said he would provide an update on this critical finance stream ‘in the next few weeks’ with a final decision ‘likely’ in June. The chair previously warned the PO’s ability to hit the £100m target is dependent on this Government support.

While describing discussions with the government as ‘positive’ he also stressed that they are taking place during a ‘challenging financial environment’.

Increase on remuneration on banking services promised

Acting CEO Neil Brocklehurst also promised PO retailers a ‘significant increase in remuneration’ on banking services from January 2026 onwards – the start date of the group’s next agreement with banks, which is yet to be signed.

“Negotiations with the banks have now largely concluded,” he revealed, adding that the deal would also see 6,000 extra note counters being given to branches alongside 400 teller cash recyclers and 400 self-serve cash deposit machines in the busiest branches.

Describing another major event that will shape the future of the PO, Railton said it expects the Government to publish a ‘green paper’ on potential network size, ownership models and funding agreements to be published ‘in the summer.

Responding to the conference, Brent Jay of campaign group Voice of the Postmaster told Better Retailing: “We’re grateful for the funding, but it is short term, we’ve got greater ongoing commitments through minimum wage and national insurance increases and we need the long-term stability in funding for us to plan. This was certainly alluded to very strongly but until the Government decides how it wants to fund and utilise the Post Office, there won’t be a clear answer.

“The Government will have lots of options, but they all come with a bill attached, but the cost of inaction will be far greater.”

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