NEW life is to be breathed into hundreds of post offices across Scotland as part of a £1.3 billion programme of investment that includes longer opening hours.

The "once-in-a-generation" opportunity to revitalise the network will see around 6000 branches across the UK upgraded.

But the Communication Workers Union (CWU) is warning the move could lead to the exclusion of many areas from full postal services – and bankruptcy and closures for postmasters.

Customers will benefit from the changes over the next three years, but it is unclear at this stage how many of the 1427 outlets north of the Border will change.

Almost half of post offices will convert either to a "main- style" branch offering extended opening hours, or a "local-style" branch in shops or garages. These will have a post office service point on their normal retail counter, and will have longer opening hours.

But these local branches will not provide certain services, including: motor vehicle licences; passport check and send services; bureau de change and travel insurance on demand.

Subpostmasters who convert to a main-style branch will be offered up to £45,000 to help them change, while those opting for a local style will have access to investment of up to £10,000.

The modernisation is voluntary, and the 5500 branches that will not become either local or main branches will retain their current operating model and be supported by subsidy payments, reflecting their key role in UK life.

The Post Office said it had to act because the number of people using its branches had fallen from 28 million customers a week in 2000 to 20 million today.

The postal affairs minister, Norman Lamb, gave a commitment there would be no closure programme. "However, change is needed to secure the long-term future of post offices," he said. "The pilots are showing the new 'locals' and 'mains' models are popular with consumers and subpostmasters."

Mervyn Jones, executive officer for Scotland for the National Federation of Subpostmasters, welcomed the news : "It provides a great opportunity for thousands of subpostmasters to modernise their post offices creating an improved, more sustainable network. I believe the significant commitment from the UK Government will help secure post office branches at the heart of our communities for the long term."

The main-style model is now operating at 16 locations throughout the UK, including Crosshill, Glasgow and in Airdrie.

The local style has also been piloted by people such as Rifiat Bibi, Subpostmaster at Craigens Road Local Post Office branch in Cumnock in Ayrshire, where he owns an off-licence and convenience store.

He said: "We did wonder how it was going to work. But we are delighted with how it's all turned out."

Trisha McAuley, deputy director of Consumer Focus Scotland, said there was no doubt many post offices were economically unsustainable and the network as a whole needed investment.

"What will matter to customers is that this programme delivers improvements and provides a sustainable and accessible local network which meets their needs" she said.

CWU general secretary Billy Hayes warned it was taking "a major gamble with our postal service and the livelihoods of postmasters". He said the announcement was "deeply one-sided and full of spin".

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