You are here: Home - Uncategorized -

Post Office branches face the chop

0
Written by:
14/12/2006

The fate of the Post Office hangs in the balance as the Government is set to announce its plans for the future of the national PO branch network.

Trade and Industry secretary, Alistair Darling, will reveal the level of UK investment it intends to make in running the network, especially rural branches, but the prognosis is not good for best investment hopes.

However, it is believed by many observers that up to 3,000 branches could be closed in the new funding package. The Department of Trade and Industry (DTI) has described the current network of 14,000 branches as “unsustainable”.

The Royal Mail receives £150m at the moment and this level of support is set to continue to 2008. But the network is currently losing £4m a week, up from £2m last year, as a result of losing key business contracts and UK investment experts say this is too much.

Post offices havce also been hard hit by the Government’s decision to pay pension and child benefit directly into people’s UK current accounts. The sale of driving licences, TV licences and passports has also been switched to the online market or other retailers.

Many sub-postmasters have said that the strain of not knowing who will be axed or who will stay is adding intolerable pressure to their daily working lives.

Prime Minister Tony Blair said: “You cannot carry on putting a massive amount of public subsidy in the form of UK investment into this. We will look for ways in which we can hopefully stabilise the situation, and give the majority of post offices a way forward.”

 

 

Related Posts

Tagged:

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • RT @procopywriters: Self-employed workers lose an annual average of twenty days chasing unpaid invoices. As the growth of the #freelance la…
  • RT @procopywriters: Self-employed workers lose an annual average of twenty days chasing unpaid invoices. As the growth of the #freelance la…
  • Self-employed workers lose an annual average of twenty days chasing unpaid invoices. As the growth of the… https://t.co/uRgjaZXQ9z

Read previous post:
‘Expensive’ PPI sales lambasted

Overpriced and unnecessary payment protection insurance (PPI) is a burden many consumers unfairly have to shoulder and underhand ways of selling it...

Close