The Post Office has unveiled comprehensive reform proposals as part of its response to a Government consultation that concludes next week, which could see it Digital ID services at its more than 11,500 branches.
Following the consultation, the state-owned organisation is advocating for its branches to become hubs for expanded services, including the collection of pharmacy prescriptions and the provision of digital identification services.
The proposals also encompass offering business advisory services to small enterprises, marking a significant diversification from traditional postal operations.
These recommendations form part of the Post Office's submission to the Government's review process, which began with a green paper published in July examining the future operational structure of the institution.
The Post Office has proposed a rollout of Digital ID services
|GETTY / PA
The organisation is requesting a more adaptable regulatory structure that would enable its branch network to adapt in response to shifting consumer preferences.
This includes potential modifications to the composition of its branch portfolio, particularly given the expansion of banking hubs operated by the Post Office.
In its response, the Post Office has urged ministers to consider implementing bespoke business rates relief, which would provide property tax reductions that acknowledge the significant role these branches play in local communities.
Neil Brocklehurst, the Post Office's chief executive, acknowledged the organisation's nearly four-century presence in British society whilst stressing the necessity for modernisation.
Digital ID rollout has officially been announced despite significant public backlash | X"Post Office has been part of the everyday fabric of British life for almost 400 years. But we cannot afford to stand still," he stated.
He highlighted how digital innovations, including Digital ID services, have fundamentally altered shopping, financial transactions and communication patterns.
"And like any modern retailer, we must evolve to meet customer demand and sell the products and services which will drive revenue for the postmasters and partners who operate our branch network," Mr Brocklehurst explained.
He expressed optimism about collaborating with stakeholders to ensure the network's longevity.
The organisation's transformation strategy involves potentially divesting 115 branches currently under direct ownership.
These locations may be transferred to retail partners or independent postmasters, with some facing possible closure.
This restructuring forms part of broader efforts to reposition the Post Office following the Horizon IT controversy, which resulted in numerous subpostmasters being unjustly prosecuted.
The scandal has prompted significant organisational changes as the institution seeks to rebuild trust and modernise operations.
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"I look forward to working with our postmasters, partners, customers and government as we continue to transform this vital organisation, and I'm confident we will see a strong and vibrant Post Office network across the UK for decades to come," Mr Brocklehurst added.
As part of his appointment as chief executive, Mr Brocklehurst confirmed a new banking deal that extends essential cash services in Post Office branches to 2030.
Referred to as Banking Framework 4, this deal is a pillar of the Post Office's "New Deal for Postmasters" with the aim of strengthening the role of postmasters post-Horizon.
This deal is an arrangement between 30 banks and building societies.