The Post Office network is on the brink of collapse unless urgent action is taken by the UK Government, according to a trade body.
The National Federation of SubPostmaster (NFSP) claims the network “has been taken beyond a tipping point” and is now facing a crisis which could prove to be “catastrophic” for local communities.
The department for Business, Energy and Industrial Strategy (BEIS) claimed the network was in its most stable position for decades, however, NFSP said around 1000 branches are said to be currently listed as closed, with a further 2500 at risk of closure over the next 12 months.
Read more Free cash machines face being wiped out, watchdog warns
According to the NFSP, which represents the businessmen and women operating post offices as a franchise, this is largely down to subpostmasters resigning as government revenue has fallen dramatically in recent years.
The government subsidy of the network is also due to end in 2012, bringing a risk of further closures as subpostmasters decide it is no longer financially viable to operate post offices.
An NFSP submissions to the BEIS select committee states: “The viability of sub post offices and the morale of subpostmasters has been eroded to the extent that the network’s resilience is extremely limited.
“We believe a tipping point has been passed and the consequences of this are now being realised.
“Subpostmasters are resigning in high numbers because it is increasingly difficult to make a decent living.
“The closure of 2,500 post offices in a year would be a catastrophic loss to communities across the UK.”
Read more Communities across Scotland invest to keep vital services going
The submission states that revenue for the network’s government services has fallen from £576m in 2004-5 to £99m in 2017-18 and there is no plan in place to replace this income.
The government subsidy of the network is also due to end in 2021, with the NFSP claiming this places 3000 community branches at risk.
A survey by NFSP also found that 22% of subpostmasters plan on closing or downsizing their post office in the next 12 months -a risk of 2500 closures.
The industry body is now calling for the government subsidy to be guaranteed beyond 2021 and an increase in remuneration rates “to prevent a mass exodus of subpostmasters”.
Read more RBS chief Ross McEwan says Post Office is 'the best solution for community banking'
A BEIS spokesman said: “We have provided over £2bn of investment since 2010; helping modernise branches and ensure the Post Office is in its most financially stable position in decades.”
BEIS also claimed the Post Office has been in profit position for two years running and modernisation added over 200,000 opening hours per week to the network, with 4,500 branches open on Sunday.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel