Gov pledges £370m Post Office funding as network becomes ‘most stable in decades’

The Government has this morning (December 20) announced plans to secure the future of the UK’s Post Office network with £370m funding.

Of that figure, £210m will be used to modernise the network so it can continue providing essential services while introducing additional benefits, such as extended opening hours and shorter queue times.

The remaining £160m will be invested to protect Post Office branches most at risk of closure, including those serving smaller villages and rural communities.

According to new government data, the network has expanded for two years running, with 99.7% of people in the UK now living within three miles of a branch and the number of rural Post Offices rising to 6,185.

The funding agreement will run between April 2018 and March 2021.

The Post Office moved into profit in 2017 – the first time its books have been in the black for 16 years.

Business Secretary Greg Clark MP said: “The Post Office is at the heart of communities across the UK, with millions of customers and small businesses relying on their local branch every day to access a wide range of important services.

“With the network at its most stable in decades, this £370m of government funding will ensure it can continue to modernise and bring further benefits to customers across the UK.”

Post Office chief exec Paula Vennells commented: “Making a profit for the first time in 16 years is a major milestone in the Post Office’s journey to a sustainable and successful business.

“We’re fulfilling the promises we have made, and this is recognised by the Government’s further investment in the Post Office, which will enable us to continue transforming the business to meet our customers’ changing needs – a transformation that has already seen us make significant progress.”

She continued: “We are committed to making the Post Office matter as much tomorrow as it does today. For over 370 years, the Post Office has stayed relevant to communities the length and breadth of the UK by changing and adapting.

“With the Post Office now trading at a profit, we are better placed than ever to embrace the future.”