New danger for rural post offices


19 June 2000



New danger for rural post offices


RURAL post offices will come under renewed threat when the organisation announces huge losses of 250 million on Monday (19 June), reports The Daily Telegraph.

The Post Office losses – the first in 25 years – are blamed on the governments decision to pay benefits directly into bank accounts, instead of over the counter.

Many rural post offices rely on the fees earned for processing benefit claims. This will be phased out by 2003.

There are fears now that some of Britains 18,500 sub-post offices could be reduced, and campaigners say 20,000 jobs could be lost.

Earlier this year Barclays caused outrage when it closed 172 rural branches.

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