Why do post offices matter?

Richard Brown looks at how changes to local post offices affect consumers and describes the role of Citizens Advice in monitoring them

This article was originally published in the July 2017 issue of Adviser magazine and was correct at the date of publishing.

Post offices deliver essential services to communities, including universal access to mail and parcels, but also access to benefits, bill payment and banking services. They are particularly important to consumers in deprived urban areas and rural areas with limited access to alternative services.

Recent Citizens Advice research indicates that 88% of British consumers think their local post office is of the same or more importance to their local community than it was five years ago. Around 17 million people visit one of the UK’s 11,600 post offices each week. Despite this, the post office network has been loss-making since 2000 due to a decline in customer visits, a fall in revenue from government services, the loss of key contracts and increased competition.

Since 2010, the government has invested £2 billion to convert around 7,500 traditional sub-post office branches into new operating models as part of the Network Transformation Programme (NTP), which is due to end in April 2018. Under the NTP, many branches have moved into other local business premises in order to reduce the need for future network subsidy. There are now two new models of post office sub-branch:

• Post Office Mains are located in larger town and city centre stores. They provide a broad range of products at a dedicated post office counter during normal working hours. They may also provide a reduced range of products and services at the retail counter outside of normal working hours.
• Post Office Locals are situated in a variety of retail outlets, such as convenience stores, off licences, petrol stations, pharmacies and pubs. They provide a reduced range of products, excluding some banking and international parcel services, at the retail counter over longer opening hours.

While the majority of consumers will benefit from the extra opening hours, customers wishing to access some additional services may have to travel to alternative branches. The government has committed to protect 3,000 ‘community branches’, located in the most rural outlets or in the last shop in the village. This, combined with investment in the NTP, has meant that fewer than 300 branches have shut since 2010.

Crown post offices are the largest branches directly operated by Post Office Ltd in flagship stores on the high street. They provide a full range of products and access to government and identity services. There are around 300 Crown branches today, compared with 600 in 2000. Since January 2016, Post Office has announced plans to franchise or relocate approximately 33% of the Crown network to alternative local retailers, such as WH Smith, to reduce operating costs. The Post Office will consult with the public in each of these cases.

The role of Citizens Advice

Post Office Ltd separated from Royal Mail in 2012 and is owned by the government. Unlike Royal Mail, which is regulated by Ofcom, there is no regulator for the post office’s network. In April 2014, Citizens Advice inherited the role of consumer watchdog in the postal sector from its predecessor organisation, Consumer Futures. This means we have a legal mandate to monitor and advocate for postal consumers, including access to essential services such as letters and parcels, through the post office network. We also have a legal duty to monitor the number and location of post offices in England, Wales and Scotland.

We work towards a sustainable post office network that is accessible for all and that meets the needs of current and future consumers by monitoring the impact of local changes, policy and research. We advocate for the needs of all consumers and small businesses and promote consumer-centred decision-making. We have particular regard for vulnerable consumers, including those who are older, disabled, on low incomes and living in rural and remote areas.

Our case handling function

Citizens Advice scrutinises every Crown franchise and NTP relocation proposal to help mitigate any risk of detriment and limit the inconvenience caused to local consumers. Our case handling team carry out detailed analysis of proposals, this includes: GIS Maps, Google Street View, availability of public transport, location of bus stops and demographic data on the local population. We receive all customer consultation and engagement feedback from Post Office Ltd and meet with them each week to recommend improvements before a final decision is made. We cannot stop a proposal from going ahead, but we can seek a further review where evidence shows that significant consumer detriment could be caused; for example, if older or disabled people will struggle to access the new location or if they will incur unnecessary cost to access their benefits.

In the last financial year (2016–17), we agreed improvements with Post Office Ltd in 88% of cases, having reviewed 8,542 consultation responses and petitions signed by over 6,000 people. The improvements fell under three broad categories:

• Access into or inside the premises: in 42% of cases we agreed specific improvements, such as adding a permanent ramp or temporary ramp, increasing door width, easing of heavy doors, changes to the store layout to increase aisle widths and providing sufficient turning circles.
• Access to the new premises: in 54% of cases the new operator agreed to pursue further improvements to assist customers with access. These include additional lighting and security CCTV or engaging with the Local Authority to review dropped kerbs, provide designated disabled parking or pedestrian crossings.
• Access to products and services: in 8% of cases Post Office Ltd agreed to enhance the products and services to limit the impact on consumers, who would otherwise have to take multiple bus journeys.

One example is the case of a branch in Staplehurst, Kent. In May 2017, Post Office Ltd proposed to move the branch 0.7 miles from the main High Street to a new location at the edge of the village.

Post Office Ltd received 206 responses to the consultation, including five from local representatives and a 496-signature petition. Citizens Advice raised significant concerns about the negative impact that the proposal would have on local consumer access to essential services, with limited direct public transport and restricted vehicle access to the proposed new location. After reviewing the responses received as part of the consultation process and the concerns raised by Citizens Advice, Post Office Ltd decided not to proceed with the relocation.

A formal role in post office changes

It might come as a surprise that Post Office Ltd must inform the nearest local Citizens Advice and other named local representatives of any post office changes and public consultations, according to their Code of Practice. This is agreed with Citizens Advice (and consumer groups in Scotland and Northern Ireland), and sets out how Post Office Ltd communicates and consults on network changes. It also sets out a two-stage process for resolving complaints, which can be raised with Post Office Ltd and then Citizens Advice for independent assessment.

Next steps

Our formal case-handling role will conclude in April 2018 with the NTP. Citizens Advice will review the Code of Practice with Post Office Ltd to determine whether changes could be made to streamline consultation processes while continuing to safeguard the interests of consumers. Our view is that consumer bodies should maintain a role in delivering proportionate oversight of future changes beyond April 2018. But we would welcome your feedback on how local changes have affected consumers.

We are starting a pilot in Wales with local Citizens Advice to review post implementation changes and the consumer experience. Please contact us if you would like to hear more about this or would like to provide feedback. You can reach us via email at postofficechanges@citizensadvice.org.uk or on Twitter @cabpost.

Please also contact us if you would like to know more about any post office changes in your area, or if you need further information or support following a local branch closure.