Post Office receives £227m settlement

In addition, the Post Office will receive a £50m subsidy next year, protecting access to essential services in commercially challenging locations. In total, it will receive £227m from the UK government.

The Post Office says the capital investment will be used to invest and improve products and services available to customers such as ‘Drop & Go’ and the introduction of automated cash deposits at branches. The investment will also go towards developing its support services available to postmasters.

Nick Read, chief executive at the Post Office, said: “I am delighted the government has recognised that post offices are a critical part of the country’s essential infrastructure, supporting millions of people and small businesses with access to everyday banking, mails and parcels services.

“The work postmasters have done throughout the Covid-19 pandemic is a powerful reminder just how important having a post office is not just to people in local communities but to the thousands of small businesses which keep the economy going.

“This important funding settlement will enable us to invest in our products and services and maintain our presence on high streets and in rural communities right across the UK helping fuel economic recovery.”