The Ipsos Mori report, Sub-postmaster Income, suggested sub-postmasters were operating on tight margins, with decreasing income and increasing costs.Sub-postmasters had become "heavily reliant" on income from the Post Office card and bill payments, both of which were under threat and the new services were bringing in low levels of income "or in many cases nothing at all."Postcomm says the Post Office is right to try to find new ways of keeping rural services going, through mobile post offices and by installing post offices in other concerns such as libraries and pubs. Some 39 per cent polled for the National Federation of Sub-postmasters could see "no future whatsoever" for their business. The Government must take action "quickly." It warned: "Postcomm has seen a distinct change for the worse over the past year in the mood and expectations of those involved in the Post Office network, reflecting a recognition that without clear direction from the Government the problems will escalate."What is the future?Grim for sub-postmasters. Postcomm says the Government should balance the wider social role of the post office network with the "imperative" of establishing a sustainable business.
Of 400 old people polled for its report, Stamped Out, 87 per cent used the local post office once a week; 14 per cent used it daily.Almost 400 MPs have signed a House of Commons Early Day Motion calling for the Post Office card to be kept. Equally, however, we have to make sure that the network is sustainable."He said it was "inconceivable" that the Government would not pay any subsidy to maintain branches, but said the amount would depend on the future of the network.What does the Post Office say?Very little. It says the state of the network is "a matter for the Government."What does everyone else say?Consumer groups are upset. Citizens Advice says post offices provide vital services and strengthen communities, acting as a lifeline for pensioners and disabled people Age Concern makes a similar point. Alistair Darling, the Secretary of State for Trade and Industry, said: "We recognise that some offices, maybe, will never be commercially viable but play an important social role.
In January, the average take-home income of a sub-postmaster was £31,116, before running costs and staff wages. Eight per cent of postmasters - almost certainly in rural post offices - received less than £6,000 a year before costs 40 per cent of postmasters are failing to cover their costs, according to the research.What does the Government say?The taxpayer cannot go on supporting "uneconomic" post offices indefinitely.Downing Street says the Government has invested £2bn in the post office network, including £750m for rural branches. The Post Office believes these could be the salvation for branches but three of them - banking, other financial services and home telephony - make only £58 a month for the average postmaster, rural and city Pay is falling. But the remaining are run by the country's 13,000 or so sub-postmasters and mistresses who are fighting the Government every step of the way and who have enlisted the support of MPs, charities and consumer groups. The National Federation of Sub-postmasters says the Government should reverse the decision to axe the Post Office card and safeguard the network."Already we are seeing postmasters using their savings to keep post offices open," Colin Baker, the organisation's general secretary, warned after he handed in the petition.According to research by Ipsos Mori for the organisation, new services have failed to make up for the loss of revenue from benefits payments. Despite the subsidy post offices lost the national Post Office Limited (one third of the Royal Mail Group, along with Royal Mail and Parcelforce) £111m last year. According to the postal watchdog Postcomm, only 1,500 of the UK's 6,000 rural post offices make money for the Post Office.Is there a revolt by postmasters?About 500 big post offices are run by the Post Office.
