Post offices to open longer hours but 7,500 branches remain at risk

SCOTLAND’s 1,400 post offices could all benefit from a £1.3 billion UK-wide package to help transform branches across the country.

The deal means that around 6,000 post offices will be converted into more modern branches over the next three years in what was described as a “once-in-a-generation” opportunity to revitalise the network.

However, critics said that the package will do little to save up to 7,500 unprofitable branches across the UK which have been put in peril by the privatisation of Royal Mail and its separation from the post office network. The Post Office said all its 11,800 UK branches will benefit directly or indirectly from the investment, which is subject to European Union state aid clearance.

Almost half of post offices will convert to a “new operating model”, covering either larger branches, which will offer extended opening hours, or “local style” offices, where a post office counter will operate inside a convenience-type store, also with longer hours.

Sub-postmasters will be offered up to £45,000 to help the change, while those opting for a local style will have access to investment of up to £10,000.

Paula Vennells, chief executive officer of Post Office Ltd, said: “This is a once-in-a-generation opportunity for the Post Office.”

Postal affairs minister Norman Lamb said: “This government has made a commitment that there will be no closure programme and invested £1.34bn to secure the long-term future of the Post Office.”

However, Scottish Labour MP Gregg McClymont, who led the attack on the government reforms, said: “In the end the government’s reforms have signed the death knell for thousands of post office branches despite this money. Royal Mail’s directors will get bonuses from making cuts and the easiest way to do this is to renegotiate the contract with the post office network and force it to cut its unprofitable branches, putting around 7,500 of them at risk.”

George Thomson, general secretary of the National Federation of Sub-postmasters, said: “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.”

Communication Workers Union general-secretary Billy Hayes said: “The Post Office is taking a major gamble with our postal service and the livelihoods of postmasters with today’s announcement – which is deeply one-sided and full of spin.”

Mike O’Connor, chief executive of Consumer Focus, said: “The post office network needs to be put on a firm footing for the future, so it can continue to serve communities who rely on their local post office. Many post offices are economically unsustainable and the network as a whole needs improvement and investment.”