Thousands of post offices are struggling to survive, with some sub-postmasters having to rely on their savings because they are not making any money, a new report warned today.
A study of 750 sub-postmasters showed two-thirds have seen their income fall or stay the same in the past year, and over half are taking home under £1,000 a month.
The National Federation of Sub-postmasters said services designed to boost incomes are failing to deliver, and called on the UK Government to introduce “tangible new work” for them.
It follows this week’s announcement by Business Secretary Lord Mandelson that the government was not going ahead with its plan to part-privatise Royal Mail.
The recent spate of post office closures and attempts to boost sub-postmasters’ incomes had delivered little or no new money, said the report.
Federation general secretary George Thomson said: “This situation is not sustainable. Our survey shows that the post office network is not out of the woods despite the recent closure programme, and the livelihoods of sub-postmasters remain at risk.
“Unless new sources of work are urgently found we will be facing more post office closures, depriving local communities of vital services and much-needed local retail.”
Four out of five of those polled reported an increase in overheads in the past year and two-thirds said staff costs had risen.
One in four said they were taking less from their post office pay as salary than a year ago while 14% were taking nothing at all, instead drawing income from pensions, savings or their retail business.
The average sub-postmaster salary is now £12,300 before tax, said the federation.
Many traditional income streams were declining, including payments from processing state pensions and benefits, while new areas such as financial services were producing “minimal” levels of income.
Apart from payments for using the Post Office Card Account, 41% of sub-postmasters earned nothing from government services, said the federation, adding that this “seriously jeopardised” government claims that post offices could become the “front office” for all government departments and agencies.
The survey also highlighted a “serious threat” to local retail in communities.
Most of those polled said they would close a shop which ran alongside the post office if the postal side of the business closed.
Only 10% said an attached business would definitely remain open if the post office closed.
Lord Young of Norwood Green, minister for postal affairs, said: “With the Post Office being awarded the government contract for pay-ment and benefits, and the new driving licence renewal contract, things are looking brighter for the network.”