In a surprise move, earlier this year, the government announced its decision to discontinue all DVLA services by 31 March 2024.
Both NFSP and Retail NI are concerned that the elimination of face-to-face transactions will have a severe impact on vulnerable and digitally excluded customers. Furthermore, this decision could also jeopardize the livelihood of approximately 50,000 full-time equivalent employees working in post offices across the UK. They added that losing this over-the-counter service is yet another blow to the use of cash.
Currently, six million customers across the UK utilize DVLA services through Post Office counters, with half of them paying in cash.
In Northern Ireland alone, there are around 500 Post Office branches, conducting approximately 40,000+ DVLA transactions at post office counters each month. Total customer numbers per month are estimated to be around 350,000 – 400,000.
Jim McCafferty, NFSP non-executive director for Northern Ireland, criticized the DVLA withdrawal on behalf of customers who prefer paying their Road Fund Licence (Car Tax) with cash. He believes that the government’s decision to provide this service solely online is unfair to communities across the country and further weakens the financial position of struggling subpostmasters.
He stated, “It appears the government has an undisclosed strategy to close numerous post office branches at no cost to themselves, leaving communities without a local post office – ‘stealth closures’. This is just the latest removal of a government service supposedly intended to save taxpayers money but goes clearly against the wishes of the public.”
Glyn Roberts, chief executive of Retail NI, expressed his concerns and asserted, “Post Offices should be receiving more government services, not fewer. They play a vital role in driving footfall for our members, supporting local high streets, and providing a crucial community service.”
He urged the government to rethink its decision and instead invest in local Post Offices.
Jim Moan, the owner of Howard Street Post Office in Belfast, voiced his dissatisfaction with the government’s promise of increased work for post offices. He feels that the decision to remove another service is crippling his business, which was already struggling, and calls on others to take a stand.
In response to the government’s decision, the NFSP has launched a campaign to raise awareness and collect signatures for their petition, ‘Prevent Government from removing DVLA services from the post office from April 2024.’
Members of the public can sign the petition here. However, the NFSP strongly encourages customers to physically visit their local post office and sign an offline petition, as this will not only support their local post office but also preserve this essential community service.
The NFSP aims to gather a significant number of signatures by 1 November this year to present to government officials and MPs. They hope this will initiate a debate in Parliament and be taken to Downing Street to persuade the government to reverse their decision.
Last year, the network earned over £3m from providing DVLA services. Considering the current cost-of-living crisis, the NFSP firmly believes that the loss of DVLA income will significantly impact postmasters and their ability to retain staff.