The Post Office is attempting to secure more government work by offering the full range of DVLA services.
Following the Department of Transport’s decision to put DVLA work out to tender, the Post Office is one of several groups looking to win the £450m contract.
Currently the Post Office network offers some DVLA services such as providing tax discs and processing driving licences.
According to Andy Burrows, head of Post Offices at industry watchdog Consumer Focus, the DVLA contract would be “a huge shot in the arm” for the network and that given the geographical reach of the Post Office, it would be “extremely well placed to handle the contract”.
National Federation of SubPostmasters general secretary George Thomson said the failure to secure the DVLA contract would result in thousands of branch closures.
“If that contract was not to come to the Post Office then we are talking about significant closures,” he said. “In all truthfulness, 5,000 post offices will easily close.”
Thomson added that the Post Office network did not win the contract then “work would start disappearing by 2013”.
Post Office Limited has submitted an initial pitch for the DVLA contract with a formal application to be made in August. A decision by the DVLA will be made later in the summer.