Post Office signs new contract with DVLA - message from Deputy CEO to Postmasters

Message from Owen Woodley, Deputy CEO at Post Office, to Postmasters announcing that Post Office has signed a new contract with DVLA:

I am pleased to announce that following intensive negotiations with DVLA, Post Office has now agreed and signed a new contract that allows Vehicle Tax and Ten-Year Renewal products to be sold in Post Offices until 31 March 2025.

Although the contract is for an initial term of 1 year from 31 March 2024 until 31 March 2025, we will meet with DVLA each year to discuss extending the contract which can run for a maximum of 3 years, until 31 March 2027.

We made a commitment to keep you, our Postmasters, updated in a timely and transparent way. As Post Office is bound by confidentiality restrictions in our contracts with Government, despite a prolonged period of negotiations, we have been unable to share this fantastic news with you before now.

The negotiations haven’t been easy. Our aim throughout has been to ensure that Postmasters receive fair remuneration for DVLA transactions and that Post Office’s associated costs for providing the services are covered. I’m pleased to let you know that we have been able to achieve this.

We had already extended our contract with DVLA earlier this year which resulted in improved remuneration for our Postmasters. This deal means that we will maintain this level of remuneration for Vehicle Tax and Ten Year Renewal transactions.

To ensure you are kept informed with the ongoing contract with DVLA, we commit to letting you know, in October each year, if extension periods are agreed. This will give you at least 6 months’ notice of any extensions, or indeed if there is any risk of this contract exiting.

We recognise that this has been an extremely unsettling time and we want to thank you for everything you and the NFSP have done to highlight how important our Government Services products are to our customers, and the fantastic job you do in serving them.

The vital role that Post Office plays in providing in-person DVLA services in our branches has been a key element of these negotiations and we look forward to continue providing these services which are so important to you and our customers.