Referral of the proposed network subsidy to Post Office Limited for 2026 to 2029 by the Department for Business and Trade
The Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to the Department for Business and Trade (DBT) concerning its proposed Post Office Limited Network subsidy for 2026 to 2029.
Administrative timetable
| Date | Action |
|---|---|
| 27 March 2026 | SAU’s report to be published |
| 27 February 2026 | Deadline for receipt of any third-party submissions |
| 16 February 2026 | Beginning of reporting period |
Request from the Department for Business and Trade
13 February 2026: The SAU has accepted a request for a report from DBT concerning the proposed Post Office Limited Network subsidy. This request relates to a Subsidy of Particular Interest.
The SAU will prepare a report, which will provide an evaluation of DBT’s assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.
Information about the subsidy provided by the Department for Business and Trade
Post Office Limited (POL) is a Public Non-Financial Corporation (Public Corporation). It was constituted under the 2000 and 2011 Postal Services Acts and is wholly owned by the Secretary of State for Business and Trade. Through POL, the government ensures the provision of a network of Post Office branches, delivering essential services to customers across the UK. These services that POL delivers via its network are services of public and economic interest (SPEI). They include:
- access to postal services
- universal access to basic cash and banking facilities
- universal payment facilities for public utility services
- provision of services on behalf of central and local government
The government requires POL to deliver these SPEI across specific access criteria. This includes maintaining a network of at least 11,500 branches, and ensuring that 99% of the UK population to be within 3 miles of their nearest post office outlet. This is a larger network than the commercial optimum for the company.
Due to this, the government has been providing POL with a subsidy to support the post office network and the delivery of these SPEI since POL was established as a result of the Postal Services Act 2011. DBT is proposing to award POL a grant of up £180 million to support the continued delivery of the SPEI across the UK, over 3 financial years: 2026 to 2027, 2027 to 2028 and 2028 to 2029. This subsidy will allow POL to continue to meet the operational costs of delivering government policy.
DBT, which is also the sole shareholder of POL, will continue to provide oversight of the company to ensure that government policy requirements are met. The subsidy will be ringfenced for the purposes of delivering government policy via the network and may not be used for supporting other activities undertaken by POL. Grant payments will be released via quarterly instalments.
Information for third parties
If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the proposed network subsidy, please send your comments on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Please send your submissions to us at sau-pol-spei-2026@cma.gov.uk, copying the public authority: postofficepolicyandfunding@businessandtrade.gov.uk
Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).
Notes to third parties wishing to make a submission
The SAU will only take your submission into account if it can be shared with DBT. The SAU will send a copy of your submission to DBT together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with the DBT using the email address provided above.
The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.
For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Contacts
- SAU project team: sau-pol-spei-2026@cma.gov.uk
- CMA press team: 020 3738 6460 or press@cma.gov.uk