MPs have been warned that the Post Office network could collapse within the next 12 months, with the loss of around 2500 branches.
This comes, after it has been found that over a fifth of sub-postmasters plan to resign or downsize, due to increased financial pressures. Additionally, the UK government is preparing to end their subsidy of the network in 2021.
The loss of many Post Offices will be blow to local communities – especially those in rural areas.
The National Federation of SubPostmasters (NFSP) has called for a ‘’rural proofed’’ subsidy to be guaranteed beyond 2021, helping to protect village branches. They demand help, to prevent these Post Office closures. They want greater governmental services and banking services to be offered by post offices. They believe this will help the network from being eroded and extend its viability, by offering more services.
Revenue has fallen from £576m in 2005, to £99m in 2018.
Royal Mail have an agreement with the Post Office, yet this ends in January 2022. Therefore, they are encouraging customers to use Royal Mail services directly rather than through the Post Office Network. Additionally, consumers with a Post Office card account are being encouraged by the Department for Work and Pensions, to switch to a bank account.