Post offices cannot survive cannot survive further damaging cuts warns MS and MP

Plaid Cymru Senedd Member for Dwyfor Meirionnydd, Mabon ap Gwynfor and MP Liz Saville Roberts have warned that accessing services at local post offices will become increasingly difficult if the Westminster government doesn’t take immediate steps to strengthen the network.

Mr ap Gwynfor recently met representatives from the National Federation of Sub postmasters (NFSP) at the Senedd, where concerns were shared about the future viability of the network and a need to safeguard key services such as banking and over-the-counter driving licence renewals.

Plaid Cymru Senedd Member for Dwyfor Meirionnydd, Mabon ap Gwynfor and MP Liz Saville Roberts have warned that accessing services at local post offices will become increasingly difficult if the Westminster government doesn’t take immediate steps to strengthen the network.

Mr ap Gwynfor recently met representatives from the National Federation of Sub postmasters (NFSP) at the Senedd, where concerns were shared about the future viability of the network and a need to safeguard key services such as banking and over-the-counter driving licence renewals.

The Driver and Vehicle Licencing Agency (DVLA) intend to end its contract with the Post Office in March 2024, raising significant concerns about the UK government's commitment towards the Post Office network and the viability of the entire service.  

There are 969 post offices in Wales supporting 2,830 jobs. Of the 11,500 post offices in the UK, less than 9,500 are full-time, full-service branches. Over the past decade, Post Offices' share of DVLA work has dropped from 70% to around 7%.

There are mounting concerns at the pace at which post office services are being digitalised with access to face-to-face, over-the-counter services diminishing. Mr ap Gwynfor and Mrs Saville Roberts say it is vital that local post offices and the services they provide rural communities are safeguarded.

Mabon ap Gwynfor MS said: 

'Post Offices play a vital role in our communities, particularly in more rural, hard-to-reach areas. Sadly, many rural branches have now closed, and we are witnessing the rapid decline of over-the-counter services at remaining branches.'

'Many high street banks have turned their backs on our towns and tell their customers to use the post office to carry out financial transactions. This, despite the Financial Conduct Authority (FCA) now limiting the amount of cash people can deposit at their local post office branch.'

'These limits impact on the amount personal and business banking customers can deposit at post office counters. This will significantly harm small businesses and charities and organisations such as chapels and churches.'  

'To compound the pressure on post offices, the NFSP have been informed that the DVLA contract is also now under threat of non-renewal. This would result in all DVLA transactions being withdrawn by 2024. Currently, the Post Office carries out over 6 million DVLA transactions annually.'

'If the DVLA contract is lost, this will have a huge impact on renumeration and the viability of the entire post office network. Furthermore, over half of DVLA transactions made over post office counters are paid for in cash. If the contract is lost then the only option left will be online payments.' 

'The digitally excluded and the most vulnerable are the groups most impacted by this lack of face-to-face presence and I share concerns voiced by the NFSP whether this could lead to a breach of the Equality Act 2010 and the government’s own policy on access to cash and social inclusion.'

'Post offices providing these important services locally must be safeguarded and I call on the UK government to ensure that the post office network isn’t further reduced and that the service provided at local branches such as cash deposits and driving licence renewals, continue.' 

Liz Saville Roberts MP added:            

'The DVLA contract, which presently pays post offices to offer this vital service over the counter, will come to an end in March 2024. This is a potentially catastrophic move which will inevitably result in post offices closing.' 

'The Post Office carries out over 6 million DVLA transactions every year, contributing around £3.2m a year to postmaster renumeration.  If the DVLA contract is lost, this will be yet another blow upon remuneration and the viability of the entire network.' 

'Successive governments have asset-stripped the post office network of products and services over many years, denying the most vulnerable in our communities access to essential services.' 

'I call on the UK government to urgently intervene to ensure postmaster remuneration is not again stripped to the bone, which may result in postmasters around Wales no longer being able to provide Post Office services in our communities.'


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  • Shane Brennan
    published this page in News 2023-09-21 15:33:31 +0100

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