SUB-POSTMASTERS at post offices in Colchester have been left in a "vulnerable position" after learning payments to them could be slashed by more than half - which could spell the closure of two branches.
The post offices in Shrub End Road, Shrub End, Colchester, and High Street, Nayland, are currently named on a ‘hard to place’ register because they haven’t found a replacement sub-postmaster following changes designed to modernise the business.
The Post Office began its network transformation programme in 2011, offering a 26 month, increased from an initial 18 month, leavers' payment to sub-postmasters who did not want to change their contract.
The National Federation of Sub-Postmasters has expressed concern for its members after the company wrote to the remaining sub-postmasters but now offering a reduced 12 month payment.
A spokesperson for the NFSP explained: “Many of the sub-postmasters are past the state retirement age. Yet they continue to keep their offices open, serving their community while waiting, in vain, for someone to take over the business.”
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The trade association, which compares this incident to the Horizon accounting scandal which saw some postmasters go to prison, fears this will leave colleagues with very little remaining after they pay other expenses.
Post Office acknowledged it is “a difficult time” for its affected colleagues and emphasised leaving with a 12 month payment is not the only option.
A Post Office spokesperson said: “Following a programme that first started over a decade ago, there are around 130 post offices that constitute a hard to place branch.
“Under the programme’s arrangements, agreed with the government of the time, postmasters who wanted to leave the network were only entitled to an exit payment if and when a replacement branch was found.
“We have provided these 130 postmasters with three different options to consider, and they have six months to tell us how they would like to proceed.”
The other options offered are to continue trading on existing contracts with variable remuneration, an upfront compensation payment, and investment to modernise their branch.
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