Respite for 8,000 post offices

A PLEDGE by the Government to extend an annual £150m subsidy has lifted the immediate threat of closure for 8,000 struggling rural post offices.

The grant was introduced last year to prevent thousands of loss-making post offices going to the wall.

Funding was secure until 2006, but Ministers have now decided to extend support for a further two years.

Many small post offices in outlying rural areas have fewer than 20 customers a week and are hopelessly uneconomic.

Under the terms of the subsidy, rural sub-post masters are entitled to grants from three funds.

One hands out money on the basis of branch size and opening hours; another helps fund infrastructure costs such as computer systems; and the third helps sub-post masters develop innovative ways to provide services.