THOUSANDS of post offices are to be modernised under a £640 million investment boost aimed at maintaining the network over the next few years.

The Government said the current number of 11,500 branches will be maintained until 2018, services will be improved and a "new style" of branch introduced.

The Communication Workers Union said 4000 postmasters faced compulsory redundancy under the plans while the postal consumer group said it will pave the way for compulsory changes to thousands of post offices and will "radically reshape" the network.

Post Office chief executive Paula Vennells said: "The additional funding confirmed today allows us to develop our branch investment programme and bring its benefits to more customers. Customers have been clear, that they want Post Office services in their communities and on high streets; we want this too whilst also meeting their changing needs, and in turn helping subpostmasters thrive."

But Billy Hayes, general secretary of the Communication Workers Union, said: "Thousands of long serving and very experienced postmasters and their staff will be put on the scrap heap, and the public will lose forever the dedicated and professional Sub Post Office service, that has stood the test of time."

National Federation of SubPostmasters General Secretary George Thomson said the new money would "allow many subpostmasters to build and enhance their retail business and give their post office a chance of a more viable future".