Yesterday it was announced that the Post Office has extended its contract with Driver and Vehicle Licensing Agency. The contract was to have been terminated at the end of March 2024 leaving Postmasters losing yet another source of income. The new contract was greeted with relief and will sustain one stream of income for Somerset’s Postmasters.

The new contract is a three year deal with a rolling annual contract renewal. The first year’s renewal will start on 1 April 2024. At the end of each year both sides will reconvene and decide if they wish to renew for a further year.

Postmasters will receive the same income as they received under the previous contract. Over 6 million people use their local Post Office annually to access DVLA services.

Under the new contract, customers can choose to visit relevant branches of the Post Office to tax a vehicle or renew a 10-year photo card driving licence. However one service will be lost to the Post Office. Under the terms of the existing contract, which runs until 31 March 2024, Post Office Ltd provide International Driving Permits (IDP) to those who need them to travel abroad. IDPs are not included in the new contract and are subject to a separate ongoing procurement exercise, the outcome of which is expected in January 2024.

There has been significant reorganisation of postal services in Somerset over the past year. As well as the loss of several Post Offices in the county. Maintaining as many income streams as possible is essential to making each Post Office viable.