Post Office close to losing benefits contract

[TrueBlueTerrier]

http://www.guardian.co.uk/business/2010 ... s-contract" onclick="window.open(this.href);return false;

Post Office's survival threatened by loss of benefit giro contract after PayPoint undercuts bid, despite pledges to protect network

The Post Office is close to being beaten by a private-sector rival to a contract to distribute welfare payments, despite ministers' claims that the network's future would be secured by becoming the "front office for government".

The bill-payment processor PayPoint is favourite to land the £70m, five-year contract, having submitted a bid that is thought to have substantially undercut the Post Office. A decision is due this year.

The revelation comes as the minister, Ed Davey, prepares to give more details on Tuesday on the future of the Post Office, which will remain in public ownership after its owner, Royal Mail, is privatised.

The National Federation of SubPostmasters (NFSP) is concerned that the network of 11,000 branches will not be able to survive if it is independent of the Royal Mail and unless the government continues to use them to process benefit payments and government services.

The Post Office has processed benefit payments such as giros for the government for more than 40 years. But two years ago, the contract to pay out 400,000 "green giros" a week was put out to tender for the first time, inviting bids from the private sector, which were submitted about four months ago. Worth about £15m a year to the winner, it will also hugely increase footfall to the winning bidder's outlets, encouraging firms to make low bids.

George Thomson, general secretary of the NFSP, said: "We are increasingly worried that the government's reluctance to go public with its decision means that the Post Office is on the verge of losing the contract. Does the government want a Post Office network which has a viable future by retaining such key contracts or are they going to let it go down the plughole?"

[kingofmcr]

oh i will be gutted ,,if i cant deliver those wonderful brown evelopes ..the joy of giro hunters pursuing me..will be gone boo hoo

[borders]

helps pay our wages

[Guevarista]

Couldn't agree more, borders. Perhaps kingofmcr will acquire a little more compassion and humility when it's his giro being delivered by one of his former giro recipients, working on minimum wage, for the newly privatised Royal-Deutsche-Dutch Post!

[POSTMAN]

R.I.P Post Office.

[subbie]

So when Mr Patel at the corner shop runs out of cash, but he has half a dozen folk who want to cash their giro, what happens then Mr Paypoint?

Subbie

[fishtank]

So when Mr Patel at the corner shop runs out of cash, but he has half a dozen folk who want to cash their giro, what happens then Mr Paypoint?

Subbie

Err...they go to the next Paypoint....usually about 300 yards down the road.
Mr Paypoint don't care...he gets paid either way.

[kingofmcr]

Couldn't agree more, borders. Perhaps kingofmcr will acquire a little more compassion and humility when it's his giro being delivered by one of his former giro recipients, working on minimum wage, for the newly privatised Royal-Deutsche-Dutch Post!

am not critisisng anyone on the dole ..just the pains in the arse ..who follow me round the streets looking for their dole cheques

[DGP1]

So when Mr Patel at the corner shop runs out of cash, but he has half a dozen folk who want to cash their giro, what happens then Mr Paypoint?

Subbie

Err...they go to the next Paypoint....usually about 300 yards down the road.
Mr Paypoint don't care...he gets paid either way.

Not true, in order to pay out the money you need to have a supply of cash available and most PP outlets have drop safes that they put the money in on a regular basis, when I did retail we dropped money when it reached £50 (and due to the robberies, every £20 that came in was instantly dropped).

[Stormproof]

I don't think there is much to keep PO's going anymore. Now they've lost the benefits contract there is not a lot customers will be going in for apart from posting items large cards/packets/Specials. You can buy postage at virtually every other shop now. Road Tax/TV licence etc does'nt need to be purchased at PO Counters. I can see 100's of redundancies at Crown Offices because people won't go in there because of the 'sell' on insurance/loans.

[fmrPOSTIE]

Well all the tories are doing is let the market have its way. I beleive Labour refused to put this out to tender when in power. The only positive is that POL will remain in govt hands and will be protected from major branch closures if they do lose the contract.

[BELIAL]

Well all the tories are doing is let the market have its way. I beleive Labour refused to put this out to tender when in power. The only positive is that POL will remain in govt hands and will be protected from major branch closures if they do lose the contract.

Think you will find that the exact phrasing was "there will be no PROGRAM of closures" , So they may well close them all at once or just in quick but random succession , or you could be correct and might be able to take this politician at the spirit of his word

[Lounge Lizard]

oh i will be gutted ,,if i cant deliver those wonderful brown evelopes ..the joy of giro hunters pursuing me..will be gone boo hoo

Surely we will deliver them as before, then the spongers take them to a Paypoint not a Post Office to get their money.

[POSTMAN]

oh i will be gutted ,,if i cant deliver those wonderful brown evelopes ..the joy of giro hunters pursuing me..will be gone boo hoo

Surely we will deliver them as before, then the spongers take them to a Paypoint not a Post Office to get their money.

Na,aint it the bank acount and card thing.