Severance package of GBP 180M for sub-post offices
A COMPENSATION package worth Pounds 180 million has been earmarked by the Government for sub-postmasters whose businesses face closure. The scale of the package, which has been detailed at recent talks, suggests that more than 2,200 sub-post offices will close, mainly in urban areas.
Sub-postmasters will be entitled to 28 months of gross pay, which can be based on their best earning year out of the previous three years. Some could receive severance of more than Pounds 100,000, although the average figure is likely to range from Pounds 70,000 to Pounds 80,000.
The Government will attempt to describe the shake-up of the network as “mergers” rather than closures. No sub-postmaster will be forced to leave but some will be told that they are entitled to severance if they choose to go. They will then be asked to encourage their customers to go to other post offices.
The Department of Trade and Industry yesterday disputed the Pounds 180 million figure, saying no final decision has been made. However, three separate industry sources confirmed that this amount has been outlined by the Government. The package needs to be approved by the European Union.
The Pounds 180 million is part of a Pounds 270 million package announced by the Chancellor 18 months ago to “reinvent the network”. Reinvention (making sub-post offices more accessible) is now expected to be done at the sub-postmasters’ expense.
