A transition plan for the future operation of the Post Office counters network is due to be announced shortly.

The move follows the pending loss of two major agency contracts relating to Treasury’s scrapping of the MiCard system in December and the digitising of driver and vehicle licensing services by the Department of Infrastructure.

These two agency contracts accounted for more than 75% of non-postal transactions at sub post office counters during the last financial year - and had been a vital part of their financial sustainability for both Isle of Man Post Offices and its independent retail partners.

In a statement, a spokesperson for the Isle of Man Post Office said: ‘I can confirm that we are preparing to formally announce our retail services transition plan.

‘The aim is to provide a smooth glidepath for customers that reflects evolving customer needs and the changing commercial landscape for compliant counter services delivered on behalf of third parties.

‘This includes the planned withdrawal of cash benefit payments by Treasury later this year, and driving and vehicle licensing services by the Department of Infrastructure early next year.

‘We expect to retain cash and card payment options for the counter services we continue to offer throughout and beyond the transition period.

She added: ‘A formal communication will be issued in due course.’

he Manx government announced in October last year that the MiCard system, which allows individuals to collect their benefits or pension in cash at post office branches, will no longer be available by the end of 2025.

It’s a move that is estimated to save Treasury at least £500,000 a year.

There has been a phased withdrawal of MiCard with new customers no longer having had the option to collect payments in cash since the end of January.

Existing MiCard users are able to continue using the service until the end of the year, but they are being encouraged to switch to direct payments into their bank or online accounts before then.

Meanwhile the DoI’s ambition to streamline driver and vehicle licensing services by making them available online moved a step closer this summer.

For a number of years, residents have been able to apply for driving and vehicle tests online, as well as pay vehicle duty and parking tickets.

But since July you have been also able to renew or apply for a duplicate driving licence via government Online Services.

Driver and licensing services will continue to be available at Post Office branches until early next year, and at the Vehicle Test Centre in Braddan, while the project roll-out takes place.

Earlier this year, Post Office chairman Stu Peters MHK said: ‘One of our long-term ambitions is to successfully transition our retail network to provide enhanced and innovative access for our customers.

‘The planned withdrawal of agency services from sub-Post Office counters has enabled us to introduce new opportunities more quickly to offer greater convenience for customers needing to send letters or parcels.’