3,000 axed sub-postmasters to be offered two years pay
Sub-postmasters will be offered two years’ pay to leave the business under “vital changes” to the postal network which will involve the closure of up to 3,000 post offices, it was announced today.
Investment grants of up to £10,000 will be offered to remaining branches to help improve facilities such as more counter positions and longer hours.
The changes will be made under a £210 million Government aid scheme which is expected to be given the go ahead by MPs tonight.
David Mills, chief executive of the Post Office, said the money will be used to restructure and modernise the network of post offices in towns and cities.
This will involve closing under-used branches, investing in others and preventing “random” closures.
Mr Mills said the network lost £163 million last year and had to adapt to survive. He added: “Now that Parliament is due to give a final decision, we will be able to deal with the problems facing the Post Office branches in towns and cities.
“Although we don’t want Post Office branches to close, the harsh reality is that many are struggling to survive.
“Many urban postmasters can’t make a profit because there are too many branches for the amount of business available.”
Mr Mills said that despite the closures, 95% of people in towns and cities would still live no further than a mile from their nearest post office.
Sub-postmasters will be offered two years’ pay in compensation if they decide to leave the business.
Mr Mills said rural post offices were not part of the closure programme, even though many were not breaking even.
There are 17,500 post offices in the UK, visited by 28 million people every week, including 9,000 urban branches.
Around a third of these are set to close over the next three years, starting in the New Year.
Consumer watchdog Postwatch said today it would examine every proposed closure to make sure customers had adequate access to services.
Chairman Peter Carr said: “The urban post office network has suffered from years of decline and sub-postmasters are leaving. We recognise that action must be taken to ensure that the network survives into the future.
“This should include bigger branches with more flexible opening hours.”
