Post offices face new axe

More than 30 of Shropshire's remaining post offices could close – hitting the poor and elderly in rural areas – under a new financial threat facing the service, it was claimed today.

The National Federation of Subpostmasters fears a quarter of the county's branches will find it impossible to survive if Post Office Ltd loses a vital account.

And it warns that widespread closures – hot on the heels of the previous round of cuts – would have a devastating impact on Shropshire communities.

The threat follows uncertainty over who will win a contract for a replacement for the Post Office Card Account, a scheme used nationally by four million people a week to access their pensions and benefits.

The Government has put it out to tender and, although a decision was due in the summer, none has yet been made.

And there is increasing concern from subpostmasters about the impact there could be on the network if the service does not win it.

In Shropshire, the loss of the contract could mean 33 post offices closing, on top of the 27 which have recently been closed or replaced by outreach services.

George Thomson, general secretary of the national federation, said businesses would become "unviable in a very short period" if the contract was lost as it brought in vital income to small shops.

He said: "At a time when the Government is talking about local communities it becomes a nonsense that we could lose a quarter of the remaining network."

Susan Brookes, Shropshire branch secretary of the federation and subpostmistress at Hanwood Post Office, said people relied on post offices in many areas.

She said: "In a lot of cases where there's a lot of elderly people, the subpostmaster might realise that somebody hasn't come in and raise the alarm. It's very much a community thing as well. It's a lifeline for people."

A spokesman for Post Office Ltd said: "This crucial decision is clearly central to the future of the branch network and Post Office Ltd has submitted a very competitive bid."

Earlier this week the Department for Work and Pensions said no decision on the contract had been made and an announcement would be made as soon as possible.

By John Kirk