New deal for postmasters

Late last year the Post Office announced changes to postmaster commission, so what does it mean for c-store retailers?

Post Office
The Post Office will pay out 10% more in fees to postmasters through 2020/21.

POST Office retailers should expect to see the fees they receive for transactions increase this year, as a new beefed up structure comes into force.

Last year, the Post Office announced plans to increase the amount of cash it pays out in fees to postmasters by 10%.

The move represents a £37m increase in remuneration for retailers through 2020/21.

There will also be additional fees paid to smaller rural Post Office; increased payments for handling digital passport applications; and increased payments for handling online travel currency purchases that are collected in branch.

As well as the fee increase, the Post Office has promised to give every postmaster access to a dedicated area manager.

The area manager will be responsible for supporting postmasters in all aspect of their business.

Goals for area managers will include improving footfall, increasing store revenue and maintaining high standards of customer service.

Nick Read, chief executive of the Post Office said that he was determined that the new fee structure would “genuinely reflect” the hard work carried out by postmasters.

“The retail landscape is tough, and the dedication and hard work postmasters show day-in, day-out, must not only be acknowledged, but be properly remunerated too.

“We are putting our customers and the postmasters who serve them front and centre of our future business,” he said.

Fee hike by the numbers


Increase in the fees paid to postmasters for Providing Post Office services in their branches in 2020/21. This is 10% higher than 2018/19.

Face time

Every postmaster will now have a dedicated area manager tasked with supporting them across the business – not just Post Office services.


The number of UK banks the Post Office reached an agreement with last autumn, enabling postmasters to provide banking services to customers.


The number of locations on the Post Office network at present. This includes individual business owners as well as larger multiple operators.