Post offices need a hand up not a hand out

12.00.00am GMT Mon 2nd Dec 2002

A West Midlands Euro-MP has criticised today’s announcement by the government of a £450 million bailout to rural post offices as being too little, too late.

The money will be paid over three years in an attempt to reverse the decline of rural post offices.

Commenting on the announcement Liberal Democrat MEP Liz Lynne said:

“The Royal Mail Group is already spending £150 a year to keep rural post offices open. When the Automated Credit Transfer Scheme comes online in April next year, post offices will lose a large proportion of their income as most benefit payments get paid directly into individual’s bank accounts. From then on, the pressure on sub-postmasters will become even more intense.”

In fact, benefit payments will still be available over the counter at post offices. However, the government has restricted the way sub-postmasters can advertise this fact. In addition, earlier this year the government decided to drop it’s “Your Guide” initiative, which would enable post offices to offer a range of government and advice services, despite a successful pilot scheme run in Rutland and Leicestershire.

“Ideas such as moving post offices into pubs are all very well, but the government is not proposing any new income streams to make up for the loss of benefit transactions. Unless the government is prepared to invest in long term solutions, all the new money announced today will achieve is a delay to still further closures.”