A new Government consultation has revealed 'nearly half' of the 11,500 Post Offices currently open are no longer profitable
Almost 6,000 Post Offices face being closed down for good under plans for a major shake-up.
A new Government consultation has revealed “nearly half” of the 11,500 Post Offices currently open are no longer profitable. Those that only open part-time or share a space with other businesses are also at risk of being axed.
The consultation admits that elderly people living in rural areas would be hit the hardest. The Future of Post Office consultation closes today and has been analysing ways to "modernise and strengthen" the postal network.
The document also suggests the Government could redefine what is considered a Post Office “branch” in the future - meaning “drop and collect” boxes could count as Post Offices.
A Department for Business spokesman told the Mail: “It is right to consider a range of options to secure the organisation's long-term future but our preference is to keep the overall size and shape of the network the same.”
The Government launched a green paper in July looking at how the organisation should be run.
The Post Office is proposing that its stores are used for more services such as pharmacy prescription collection, digital ID and business advice.
However, it has also called on the Government to look at tailored tax relief for Post Offices. The business also called for the Government to allow it to extend its enhanced banking and parcel services with new services, such as advice for small business.
The Post Office is also pushing forward with plans to offload 115 directly owned branches, known as crown Post Offices, which could see them transferred to retail partners or postmasters, or potentially closed. These are largely located in city centres.
The majority of Post Offices are run by independent postmasters, while some are operated by retailers such as WH Smith, Tesco, Morrisons and the Co-Op.
Neil Brocklehurst, Post Office chief executive, said: “Post Office has been part of the everyday fabric of British life for almost 400 years. But we cannot afford to stand still. Digital technologies have transformed how we shop, transact and communicate.
“And like any modern retailer, we must evolve to meet customer demand and sell the products and services which will drive revenue for the postmasters and partners who operate our branch network.
“I look forward to working with our postmasters, partners, customers and government as we continue to transform this vital organisation, and I’m confident we will see a strong and vibrant Post Office network across the UK for decades to come.”