Press Release: State aid: Commission endorses public service compensation for UK Post Office Ltd

The European Commission has authorised UK plans to grant a £1155 million (around €1383 million) network subsidy to the UK Post Office Ltd aiming to keep open and modernise non-commercially viable offices. The Commission found the measure to be in line with EU state aid rules, in particular because the aid does not exceed the net cost for providing the public service mission entrusted to the Post Office Ltd.

The Commission also endorsed the continuation, under stricter conditions, of a working capital facility of up to £1150 million (around €1377 million) which will provide the Post Office Ltd with sufficient liquidity to carry out its public service obligations. The Commission concluded that this liquidity facility is provided on market terms and therefore does not constitute state aid within the meaning of EU rules.