“Posting letters and parcels is an essential service and consumers are looking much harder at value for money and quality of service, even on the price of a stamp.

“This year’s freeze on stamp prices for letters, following the big rise last year, is welcome news. The simplification of the pricing structure for parcels also makes sense, although consumers will need to be aware that the new medium parcel price may be more expensive than the current price.

“Hopefully the changes to the parcels services will make choices simpler for consumers. However we all know that any change can be confusing, and so we would hope to see very clear information about the new services parcels displayed in every post office and for counter staff to provide consumers with the correct advice, so they choose the product and price that is right for them.

Also it would make good sense to identify every parcel posted over the counter with a simple mark to show that the consumer had made every effort to get it priced correctly.”

Notes to editors:

1. In April 2012, the price of a 1st class stamp rose from 46p to 60p and 2^nd class from 36p to 50p.

The consultation sets out the proposed objectives and priorities over the next financial year, and leading up to the expected transfer of the RIU to the Citizens Advice service and to the Consumer Council for Northern Ireland in autumn 2014.

The proposed priorities are informed by the experience of Consumer Focus, an assessment of the greatest economic, regulatory and social policy challenges in relevant markets and by the contributions of stakeholders during the consultation on the design of the RIU.³ The consultation addresses issues that affect consumers in different parts of the United Kingdom or where the policy environment in Northern Ireland, Wales, Scotland and England, require a particular national or regional focus.

The work of the RIU will include the role of the Consumer Focus Extra Help Unit which provides support to consumers at risk of disconnection from energy supply or for those vulnerable consumers who may not be able to make an effective complaint themselves. It is also expected that the Extra Help Unit will transfer to Citizens Advice and Citizens Advice Scotland in 2014.

During 2013/14, it is proposed that the RIU should prioritise work in the following themes:

• Understanding and tackling consumer vulnerability and disadvantage in essential markets
• How to meet the costs of infrastructure, resilience and renewal
• The challenges and opportunities of complex markets in a digital age.

Mike O’Connor, Chief Executive of Consumer Focus said:

‘The next few years will be tough for consumers who are likely to face a growing bill for essential services at a time when most incomes remain under pressure.

‘The need for investment in infrastructure in essential markets, such as energy, is one of the reasons why costs are rising and where the consumer voice on how these costs are met needs to be heard more clearly than ever.’

The RIU has core responsibilities in energy, postal services and water in Scotland.  At the same time it will be a unit whose impact will be greater than the sum of its parts. This consultation document sets out key consumer priorities for the unit and how these priorities will vary between markets and between England, Scotland, Wales and Northern Ireland.

In April the RIU will launch with a new name, a new identity and a confirmed set of priorities. It will continue the best traditions of Consumer Focus but will bring a new cross sector mission that is a unique and exciting prospect for consumer representation in the UK.

Gillian Guy, Chief Executive of Citizens Advice said:

‘We are working closely with Consumer Focus to get the RIU off to a good start with a strong programme of work for consumers. The new roles for the RIU and Citizens Advice will give all consumers a stronger voice. This consultation is an important step to getting the new consumer landscape arrangement up and running so that people can benefit from a one stop shop for consumer advice and advocacy.’

Margaret Lynch, Chief Executive Citizens Advice Scotland commented:

‘We have worked with Consumer Focus over the past months on designing the RIU and we look forward to responding to this consultation. Consumers in Scotland need a strong voice in relation to these essential markets. People in rural and remote communities in particular can pay more and get a poorer service in these essential markets because they are at the end of the line. I am pleased to see this given due prominence in these proposals.’ 

The consultation on the work plan will run until 4 March 2013.²

Notes to Editors

1. As part of the Government’s reforms of the consumer landscape, Consumer Focus will establish a new Regulated Industries Unit to identify and represent consumers’ interests in complex, regulated sectors, including energy and postal issues and, in Scotland, water.   The Government’s intention is that this Unit will transfer to Citizen’s Advice, Citizen’s Advice Scotland and, in respect of post and post offices in Northern Ireland, to the Consumer Council for Northern Ireland.  Subject to Parliament, the expected date of transfer is October 2014.
    
2. Organisations or individuals wishing to respond to the consultation on the Regulated Industries Unit work-plan should email: workplan@consumerfocus.org.uk or can post their responses to Pernille Thomsen, Consumer Focus, Victoria House, Southampton Row, London, WC1B 4AD.

New research¹ by Consumer Focus Post reveals that last Christmas:

• almost two-thirds (63 per cent) of people did not know the last posting dates for items to arrive on time
• approximately 90,000² people across Northern Ireland finished their Christmas online shopping after 20 December
• one in 10 only allowed four days for their Christmas cards and presents to arrive before the big day.

If consumers plan ahead they may also be able to save money by sending all of their Christmas items Second Class. According to Royal Mail, hundreds of million cards are posted to family and friends in the run up to Christmas. With First Class stamps costing 60p and Second Class 50p, savings can add up. Second class post also has a better delivery record – last Christmas only just over a half of items sent First class arrived the next day, but over ninety percent of items sent using Second class arrived on time within three days.³

Michael Legg, Policy Manager at Consumer Focus Post, said:

‘Last year a lot of people left their Christmas post to the last minute.  With only a month to go  we’d urge people to think about their Christmas post now. Another benefit of posting early is that you can make savings by using Second Class mail.’

‘Posting early also gives the local postie a helping hand to deliver the huge surge in Christmas post on time, especially if we experience bad weather conditions that may cause problems with the delivery of mail.’

To help consumers avoid any festive slip-ups with their post this year, Consumer Focus Post is publishing some top tips: 

1. If you are eligible, make the most of Royal Mail’s Christmas stamps offer.⁴ If you receive Pension Credit, Employment and Support Allowance or Incapacity Benefit you can buy 36 First and Second Class stamps from your local post office at 2011 prices – 46p for First Class and 36p for Second Class.
2. Post as early as possible using second class. This will save money and cut stress by ensuring items are delivered well in time for the big day. The last recommended postal dates for the UK include: Standard Parcels – Thursday 13 December; Second Class – Tuesday 18 December and First Class – Thursday 20 December 2012. The last recommended postal date for some international airmail is as soon as Wednesday 5 December. ⁵ 
3. If you are sending presents, ask for a free proof of posting (available from Post Offices), it will be required for compensation for loss, damage or delay to your gift.⁶ 
4. Avoid queuing at the Post Office if you can – avoid them by buying and printing off postage online or using one of the automated kiosks in a main Post Office. But remember if the item is valuable and you need a certificate of posting, you will still need to go to the Post Office counter 
5. This is the first Christmas when undelivered post can be left with neighbours. This can cut down the inconvenience of having to collect mail from a delivery office if you aren’t in to receive it but you can opt out if you don’t want to be part of the Delivery to Neighbours scheme.⁷ 
6. Avoid simple common errors:

• Pay the right postage. If in doubt check the card – most will be marked if you need a Large Letter stamp. Cards longer than 24cm, wider than 16.5cm, thicker than 5mm or heavier than 100g will need a Large Letter stamp.
• Ensure presents are carefully packaged and fragile items are marked. If it is valuable, send it Special Delivery – with the correct level of compensation cover.
• Make sure the address is correct and easy to read including a post code⁸ and return address on the back.
• If you are sending cash or vouchers mail them using Special Delivery, if you use any other service you can’t claim compensation if they go missing.

ENDS

Notes to editors:

1. Consumer Focus Post commissioned research undertaken by Perceptive Insight.  1,000 face to face interviews took place between 30 January and 20 February 2012 across a representative sample of the Northern Ireland adult population.
2. Estimate calculated using Consumer Focus post research and the 2011 Census estimates showing that there were 1.811 million people living in Northern Ireland in March 2011. The Consumer Focus Post survey shows that last year 5 per cent of the Northern Ireland adult population did not finish their online Christmas shopping until after 20 December.
3. Royal Mail’s Quality of Service percentages show the probability that an item will arrive when it is due. Normally, first class items are due to arrive one day after posting with a 93 per cent probability, and second class items are due to arrive three days after posting with a 98.5 per cent probability (at Christmas time these targets do not apply due to the massive volume of mail in this period).

Christmas Quality of Service performance 2005–2012

* Please note exceptional weather conditions that winter contributed to delays in Christmas post.

4. Royal Mail has already posted a leaflet to every UK household with further details of the scheme including a voucher. To benefit from the Christmas offer, customers need to take the voucher and a letter from the Department for Work and Pensions showing that they are in receipt of at least one of these benefits, to a UK post office. This will enable them to buy up to 36 stamps at 2011 prices – 46p for First Class and 36p for Second Class.  

Vouchers are also available from local Age UK offices or through Royal Mail’s Customer Service Team on 08456 016 248 or www.royalmail.com/stampoffer

5. Check the last recommended post dates at http://www2.royalmail.com/greetings

6. Royal Mail does not automatically issue proof of posting for First Class, Second Class or standard parcels, so people need to remember to ask for one at the Post Office counter. Without proof Royal Mail will only pay a minimum of 6 first class stamps in the event of loss or damage, but with proof of postage and evidence of value customers are entitled to a postage refund plus compensation up to the value of the item, or £46, whichever is the lowest.

7. If no-one is available to take delivery of mail that is either too large to fit through the letterbox or requires a signature, then items can be left with a neighbour of the recipient. Items include parcels and Recorded Signed For items, but not Special Delivery or international items requiring a signature. More information on Royal Mail’s Delivery to Neighbours scheme can be found on its website.

If you or your neighbour are not available to accept delivery you may wish to consider using a suitable alternative delivery address. This could save you time and the costs associated with collecting the item from the local Delivery office. You can also have mail redelivered free to your home or a different address within the same postcode area. Alternatively, you can collect the item from your local Delivery Office or for £1.50 from a local post office.

8. Customers can check up to 15 postcodes free every day on Royal Mail’s website or by calling 0906 302 1222 (Monday to Friday, 8am to 5pm; calls charged at 50p/minute). Alternatively call Royal Mail on 08457 111 222 (Monday to Friday 5pm to 7pm, Saturday 9am to 2pm; calls charged at local rate).

‘This is a win-win decision for consumers and the Post Office. Winning the DVLA contract will help to secure the sustainability of the Post Office’s network and maintain the service customers need. There is a lot of talk about the potential benefits of the Post Office being the Front Office for Government, but this is only as good as the actual contracts won.

‘Forthcoming UK-wide Consumer Focus research shows clear consumer appetite to access central Government services through post offices. Post offices are trusted to provide expert, specialist services at locations which are convenient for their customers. Growing Government business is critical to turning the network around and hopefully this will be the first of many.’

Notes to Editors

Soon to be published UK-wide Consumer Focus research reveals that:

Car tax

-       62 per cent per cent said they would be likely to use a post office to apply for or renew car tax in future

-       Of these 80 per cent said they were likely to use a post office for car tax because it was a convenient location for them

Wider Government services

-          83 per cent say it’s important for everybody that they can access Government services, face to face, at the post office

‘This is good news for consumers. Missed deliveries are an increasing inconvenience for many people and giving postmen the option to leave undeliverable post with a neighbour is one way to tackle this issue.

‘This moves reflects our changing lives – more of us live alone or have entire households at work during the day and need alternative ways to receive our mail. We are also becoming a nation of internet shoppers meaning an increase in the number of larger parcels and packages which we need to be delivered.

‘Not all customers will want their mail to be left with a neighbour, but as long as the scheme is well-publicised, carefully monitored to identify potential issues and it’s clear that people can opt out, we fully support this scheme. However, Royal Mail must also continue to explore alternative ways of delivering undeliverable post such as locker banks, time-slot deliveries and text delivery alerts. ‘Delivery to Neighbours’ should not be seen as a universal solution to the issue of delivery convenience. 

Consumer Focus Post welcomes the fact that Ofcom has recognised that additional monitoring should take place in Northern Ireland, particularly as Northern Ireland was not included in one of the six trial areas across Great Britain, which took place earlier this year. During the roll out, Consumer Focus Post considers it would be sensible for Royal Mail to take any steps necessary to ensure that specific issues are identified as quickly as possible and to share that information with its regulator Ofcom.’ 

ENDS

In June 2012 Consumer Focus published consumer research which showed that consumers welcomed a wider roll out of the ‘Delivery to Neighbours’ scheme after a number of regional trials in GB.

‘As we do more of our shopping online, missed deliveries are becoming an increasing inconvenience for customers. Many people will be at work when deliveries are made and need alternative ways to receive their mail. Leaving post with a neighbour is a good option, and research by both Royal Mail and Consumer Focus during trials earlier this year in Great Britain showed a positive response from customers, and the neighbours their mail was left with.

‘Not all customers will want their mail to be left with a neighbour. But we welcome this extra delivery option, as long as Royal Mail ensures customers are aware they can opt-out and that staff adhere to the scheme’s guidelines. It is also vital that key safeguards around these changes are included in Royal Mail’s terms and conditions so that consumers’ rights are protected.¹’

Consumer Focus Post has made the following recommendations to make sure the delivery to neighbours initiative meets customers’ needs:

• Post men/women must be fully aware of guidelines including what items can be left with neighbours and correct use of ‘Something for You’ cards
• Consumers must retain the right to opt-out if they wish. Royal Mail should investigate the needs of these people who have undeliverable mail but do not wish to have it delivered to a neighbour
• Royal Mail must continue to explore alternative ways of delivering undeliverable post – delivery to neighbours is not the universal solution to the issue of delivery convenience.
• Due consideration should be given to a trial period of the Delivery to Neighbours initiative in Northern Ireland, which will help support the future roll-out of the scheme.

ENDS

 Notes to editors:

1. The legal terms and conditions for residential consumers and many small businesses are set out in Royal Mail’s postal schemes. In its consultation Ofcom recognised key safeguards must be in place around a national roll-out of the Delivery to Neighbour scheme. These safeguards must be accurately enshrined in the terms and conditions that govern how Royal Mail interacts with consumers, in language that customers can easily understand.

This means changing the wording of the schemes so that they:

• Enshrine the ability of consumers to opt out of the service by reasonable means, which may include the display of an opt-out sticker in a prominent place at their address on or near their letterbox
• Allow delivery officers to choose an appropriate ‘neighbour’
• Require Royal Mail to pay compensation for lost and/or damaged mail until the point at which the addressee receives the item, even when items are delivered to a neighbour

The report is intended to encourage debate on how the postal service should change to meet the needs of consumers in the digital age, as use of mobile phones and the internet replaces letter writing. In particular it explores the possible implications for the universal postal service obligation¹.

 The research² revealed that consumers’ habits when communicating for personal and business reasons have changed over recent years and are continuing to change, and that in the future they will use the postal service in a different way. Consumers are placing a different emphasis on the service, with a shift from sending letters to receiving parcels, which means a greater interest in making deliveries more convenient. E-retail is a significant growth sector and the postal service has a key role to play for businesses, especially small and medium enterprises (SMEs) ³.

 Key findings from the research also showed that:

• residential consumers may be willing to accept a reduced number of postal deliveries during the week, although SME consumers would only be willing to accept losing the Saturday delivery
• residential consumers are also prepared to see the removal of the distinction between First and Second Class post as they see little meaningful difference in service quality between the two
• consumers want several ‘paybacks’ for a reduction in service frequency:

- greater innovation in delivery options for packets and parcels

- extending the number and range of pick up points to include longer opening hours and more convenient locations

- maintaining the current pricing structure (‘one price goes anywhere’)

- regulation of reliability and punctuality

• the majority of consumers felt that vulnerable groups, such as low income households, older people or those with disabilities, would be further excluded by wider use of electronic forms of communication and wanted the postal regulator, Ofcom, to be given powers to protect these consumers.

 Kellin McCloskey, Head of Postal Policy, Consumer Focus Post said:

‘The communications market is changing dramatically and quickly, and post cannot be left behind. Consumers tell us that post will still have a role in their lives in five years’ time and the postal service must reflect their changing needs. We know that this will require a difficult debate that potentially involves changes to existing regulation and legislation, but that is all the more important that we begin this discussion now.

 ‘There is a growing tension between the substance of the universal postal service and its sustainability. Consumers should not be obliged to pay a premium for a ‘gold-plated’ service.  But that means that policymakers will need to think long and hard about how to ensure that technological advance and changing markets deliver good value and service to consumers, particularly the most vulnerable.’

 ENDS

 Notes to editors:

• Following the Government’s consumer advocacy reforms, Consumer Focus will continue to act in the consumer interest across a wide-range of sectors until our general advocacy role passes to Citizens Advice in April 2013. As part of the reforms, Consumer Focus will establish a new unit to identify and represent consumers’ interests in complex, regulated sectors, including energy and postal issues and, in Scotland, water. Our Annual Plan for 2012-13 is available online.
•  Consumer Focus intends to use the findings from this report to feed into Ofcom’s consultation on the extent to which the postal market is meeting the current needs of consumers, which is anticipate to start in the autumn.
• Consumer Focus has also put together some video clips from Big Sofa to illustrate these findings.

1. The Universal Service is specified in legislation and regulated by Ofcom. It is defined by:

-       The delivery of mail to every UK address

-       The collection of mail from every post office and postbox

-       Service six days a week for letters (including Saturday)

-       Service five days a week for parcels (Monday to Friday)

-       Affordable prices

-       ‘One price goes anywhere’: anyone in the UK can send post to any other part of the UK at the same price

2. Undertaken by Accent, the research comprised 28 focus groups across the UK with small and medium enterprises (SME) and residential customers, including four sessions with under-18s.

3. The postal service is facing two fundamental changes which are driven by technology. Mail volumes are falling significantly every year due to increased use of mobile phones, email and social networks. However, increases in online shopping mean an rise in ‘fulfilment’ mail volumes i.e. packets and parcels ordered online which need to be delivered. See Ofcom’s Communications Market report (2012) for further information about the changing communications market.

 Mike O’Connor, Chief Executive of Consumer Focus said:

‘We welcome the Select Committee’s report. The Post Office network needs to undergo substantial reform if it is to thrive in the 21^st century as we all want it to. 

‘The new PO Local model offers some benefits for consumers, including much longer opening hours than a traditional sub-post office. However, greater accessibility will only fully benefit consumers if the services that they need are available.

‘Getting the correct balance between what consumers need and what might be attractive to potential operators of the new model is not straightforward. The need for change is pressing, but getting the programme right at the beginning is critical to its long term success.

‘More needs to be done on the range of products available, staff training and the advice given to consumers, privacy and availability of cash if we are to maximise the chances of success for the programme.

‘It is vital that POL takes this opportunity to transform the network to ensure its millions of customers receive the good quality and reliable service they expect from their post office.’

ENDS

 Notes to editors:

• From summer 2012, the Post Office’s Network Transformation will see more than half of traditional sub-post offices convert to new operating models as part of the largest set of planned changes in the Post Office’s history. By 2015, out of the total 11,800 branches, around 4,000 will become Post Office Mains and a further 2,000 will become Post Office Locals.

•  The Post Office Locals model will see post office services delivered by trained shop staff from the main counter of retail outlets such as convenience stores or petrol stations, rather than from a separate dedicated post office area. This is opposed to the currently position where most sub-post offices operate as part of a small shop, but have a separate post office counter with dedicated staff.

• Post Office Mains is a new operating model for High Street branches and are expected to be the largest and busiest branches in the network. Post Office Mains should offer extended opening hours, increased automation and investment to tackle service standards, including queue times.

Based on Consumer Focus mystery shopping, Open All Hours issued in May 2012, highlighted consumer research looking at PO Locals trial branches. Areas that the watchdog called on POL to address included:   

• Advice – The report highlighted widespread evidence of inconsistent, and often inaccurate, product and pricing advice. For example, second class postage was sold correctly in only one in five visits; large or heavy parcels were refused in a quarter of cases; and in two-thirds of cases, researchers were sold Special Delivery without staff asking the questions necessary to determine if it was the most suitable and suitably priced product.

• Product availability – More than one in six customers (17 per cent) were told they couldn’t access a service which actually should have been available. Not every consumer expected to access all post office services at their PO Local outlet.   However, for a significant number of those surveyed, some of the services they said they needed and which are currently available across the network, wouldn’t be available at most PO Locals. These include Local Collect services (52 per cent). Although 75 per cent of customers said their perception of the  knowledge of counter assistants was good, this mystery shopping show there appears to be a significant problem.

• Privacy – Over a third of users (34 per cent) found the privacy available in a PO Local to be poor. Of all Locals users asked, 41 per cent said the privacy was worse than in sub-post offices.  Almost one in five (19 per cent) also said they were reluctant, because of concerns over the perceived unreliability of staff, to undertake high-value, personal or confidential transactions at PO Locals.

• Consistency of service – The report outlines problems with the reliability of the service at many branches, such as trained staff being unavailable or the demands of the associated business taking priority. Mystery shoppers also reported that PO Locals were not always open when scheduled, particularly during extended hours.

• Cash withdrawals- The research also found some PO Locals were capping the cash or benefits a consumer can withdraw, or were unable to make any cash payments. In branches that do not receive cash supplies from Post Office Limited (POL), mystery shoppers were unable to withdraw cash in 10 per cent of visits (approximately 33 per cent of the current Locals pilots operate without cash supplies from POL – all sub post-offices receive cash supplies from POL). This poses a potential risk for older and vulnerable consumers, who rely on post offices to access their cash.

• Consumer Focus also issued Local but Limited? in April 2011 which highlighted consumer experiences of PO Local branches.

‘We welcome today’s consultation of a wider roll-out of the delivery to neighbours scheme, as long as it is well promoted and consumers retain the right to opt out if they want to.

‘Today’s consumers post fewer letters, but parcel volumes are rising as we order more goods online and through catalogues and have them delivered to our homes. Royal Mail is right to see delivery to neighbours as one way to make life easier for its customers in the face of these changes.

‘Independent consumer research in the areas where Royal Mail trialled the scheme across Great Britain showed a lot of support from customers involved¹. However, this is not the single solution to the issue of delivery convenience, and we call on Royal Mail to explore other ways of making it easier for customers to receive goods that need to be delivered.’

 Notes to Editors

1. Last month Consumer Focus undertook some independent research looking at how consumers felt about the recent ‘Delivery to Neighbours’ trials which took place in six areas across Great Britain.

From summer 2012, the Post Office’s Network Transformation will see one in five sub-post offices convert to the PO Local model as part of the largest set of planned changes in the Post Office’s history.  Most sub-post offices currently operate as part of a small shop, but have a separate post office counter with dedicated staff. The Locals model will see post office services delivered by trained shop staff from the main counter of retail outlets such as convenience stores or petrol stations, rather than from a separate dedicated post office area.

Many post offices are economically unsustainable, so Consumer Focus recognises a new approach is needed. With around 2,000 PO Local conversions across the UK, these changes provide a major opportunity for improvements. The watchdog’s report shows that PO Locals offers many positives for customers with greater convenience and extended opening hours, which were welcomed by the vast majority of consumers (eight out of ten of those surveyed).¹ However, based on customer research and mystery shopping at 105 branches currently trialling the model across the UK, the research also shows a number of areas which must be addressed if the new model is to meet consumers’ needs and deliver a consistent and reliable service.

The current trials are intended to identify areas which need attention as the Locals model develops and Consumer Focus has carried out this research to assist Post Office Limited in this endeavour and we recognise that it is taking action on some of our findings.  We will continue to monitor and report to consumers on its actions.  

Key findings from Consumer Focus’s research showed improvements are needed in PO Locals on:

Advice – Consumer Focus mystery shopping showed widespread evidence of inconsistent, and often inaccurate, product and pricing advice.² For example, second class postage was sold correctly in only one in five visits³; large or heavy parcels were refused in a quarter of cases; and in two-thirds of cases, researchers were sold Special Delivery without staff asking the questions necessary to determine if it was the most suitable and suitably priced product.⁴

 Product availability – More than one in six customers (17 per cent) were told they couldn’t access a service which actually should have been available.⁵ Not every consumer expected to access all post office services at their PO Local outlet.   However, for a significant number of those surveyed, some of the services they said they needed and which are currently available across the network, wouldn’t be available at most PO Locals. These include Local Collect services (52 per cent).⁶ Although 75 per cent of customers said their perception of the  knowledge of counter assistants was good.

Privacy – Over a third of users (34 per cent) found the privacy available in a PO Local to be poor. Of all Locals users asked, 41 per cent said the privacy was worse than in sub-post offices.  Almost one in five (19 per cent) also said they were reluctant, because of concerns over the perceived unreliability of staff, to undertake high-value, personal or confidential transactions at PO Locals.

Consistency of service – The report outlines problems with the reliability of the service at many branches, such as trained staff being unavailable or the demands of the associated business taking priority. Mystery shoppers also reported that PO Locals were not always open when scheduled, particularly during extended hours.

Cash withdrawals – The research also found some PO Locals were capping the cash or benefits a consumer can withdraw, or were unable to make any cash payments. In branches that do not receive cash supplies from Post Office Limited (POL), mystery shoppers were unable to withdraw cash in 10 per cent of visits (approximately 33 per cent of the current Locals pilots operate without cash supplies from POL – all sub post-offices receive cash supplies from POL). This poses a potential risk for older and vulnerable consumers, who rely on post offices to access their cash.

Kellin McCloskey, Head of Postal Policy Consumer Focus Post (NI) said:

‘Changes are needed to put the post office network on a more sustainable financial footing. Communities rely on their local post office, so everything possible must be done to make sure that all elements of Post Office Locals are working well for customers, given the planned national roll out of such major changes. This report shows a mixed picture and that further work is needed to make sure the millions of customers who will be affected receive a good quality and reliable service. 

‘Some aspects of the new Locals model could be great news for consumers. Everyone will welcome longer opening hours, but they would also expect most core post office services to be available. 

‘We want Post Office Locals to work well. Our concern is that Post Office Limited will be missing a golden opportunity if it does not get the PO Local model right and we hope our findings will help them in this respect.  We don’t want to see shortcomings we’ve picked up in pilot branches being replicated across two thousand PO Locals in the future. We do however want to see the advantages and benefits such as convenience and longer opening hours that our research has also identified.’

To improve the PO Local model for consumers, Consumer Focus wants to see measures including:

• Post Office Limited (POL) to raise the quality of advice given to customers – including an overhaul of staff training, stricter monitoring, support and compliance processes.
•  POL to offer a core menu of services in every PO Local branch which is well-communicated to consumers. This should include products consumers want to access which are not currently offered through PO Locals, such as paying paper-based bills, making cash deposits and withdrawals from all accounts, and a full range of parcel services. The Local Collect service⁷ could build on the convenience of extended opening hours.
• POL to address consumer concerns over privacy, the open plan counter and the knock-on impact on confidentiality when undertaking transactions.
• POL must offer a reliable service through PO Locals, comparable with other post office models. Longer opening hours are strongly welcomed by consumers and POL must capitalise fully on this key strength. Breaks in the service due to unavailability of trained staff, irregular opening hours, and conflicting business demands, must be tackled. Longer opening hours must also be better communicated in-branch – in over a quarter (29 per cent) of mystery shopping visits opening hours were not seen displayed.
• The arrangements for supplying PO Locals with cash must be reviewed, and if necessary, changed.

ENDS

Notes to editors:

• Consumer Focus commissioned GfK to undertake two research projects in the 105 locations where PO Locals have been piloted. This included six focus groups and a face-to-face survey of 1,030 adults living in the catchment areas of these 105 branches across the UK. As part of the research, a mystery shopping exercise was undertaken with 362 visits undertaken (up to four visits to each of the 105 PO Local branches). Mystery shoppers were allocated two out of a total of five scenarios designed to test the quality of product and pricing advice they received – 724 scenarios were tested overall. Fieldwork was carried out in January and February 2012.

1. In the research, 81 per cent of users and 79 per cent of non-users said that extended opening hours at PO Locals would be useful to them. Over three-quarters (77 per cent) had visited a PO Local during extended opening hours. One in seven (15 per cent) said they now use the PO Local primarily during extended opening hours. Use of PO Locals during extended opening hours is higher among those in full-time work (84 per cent).
2. As part of the mystery shopping exercise, at each branch the researchers completed two of five scenarios to assess the quality of pricing and product advice of core PO Local products and services. The scenarios assessed were: posting a large letter; posting an item that should be sent by Special Delivery; posting a large parcel (over 6kg); enquiring about the availability of travel money and making a cash withdrawal. Visits were spread across the opening hours of PO Locals and in all 724 scenarios were undertaken across 105 pilot PO Local branches.
3. Consumer Focus mystery shoppers were correctly sold postage for a Second Class Large Letter in just 21 per cent of PO Local visits – this dropped to 15 per cent during extended opening hours. The scenario was to send a large, flat A4 envelope, with counter staff told the item was not urgent – the correct advice would have a second class large letter stamp (58 pence when research was conducted). Two-thirds of mystery shoppers were advised to buy more expensive postage than they needed and five per cent were actually charged less than they should have been. Previous research conducted by the watchdog found that in High Street, Crown and franchised branches, mystery shoppers were told the correct postage for a First and Second Class large letter in 99 per cent of cases.
4. Post Office staff should ask when an item needs to arrive, its contents and value, before they can correctly identify whether Special Delivery is the right product to meet the customers’ needs. Although Special Delivery was the right product for this scenario, there is a significant price difference if the wrong product is sold – Special Delivery is now £5.90 (£5.45 when the research was conducted, before the recent price rises.) In comparison, a first class stamp is 60p (46p before the recent price rises.)
5. Services which customers could not access included: parcels over 6kg and core services such as Special Delivery, cash withdrawals and electronic bill payments.
6. Services not offered through PO Locals, but users say they would need to use at their post office branch

Base: all users (807)

PO Locals offer a core range of post office services. They typically will not offer the above services. Most of these services are available in all 11,600 post offices, including sub-post offices. The exceptions are car tax payments, on demand currency, and DVLA or passport applications – which are only available in larger post offices – between 2,500 and 4,500 branches depending on the service.

Please note – a small number do provide the Local Collect service and it is not a service precluded from the model. Cash withdrawals or deposit can be made if a bank card is used but not without a bank card, e.g. a passbook could not be used. Paper-bill payments can also be processed if there is a bar code on the bill.

7.   The Local Collect service gives customers the option to pay a small fee for undelivered parcels or signed for mail to be redelivered to their local Post Office, rather than having to collect this from a delivery office or wait in for redelivery at home. As most PO Locals will offer extended opening hours having a parcel delivered to a local branch could provide a more convenient option for consumers to pick up undelivered mail.