Postmasters predict cuts and closures in the new year

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Leanne Main and Caroline Cochrane at their Selkirk branch of the Post Office.
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Leanne Main and Caroline Cochrane both have other jobs as well as running their Selkirk branch of the Post Office

Postmasters across the country are predicting a year of cutbacks and branch closures as overheads rise and income falls.

Many have already taken on second jobs and reduced staff hours this year in a bid to keep their businesses open.

A campaign group for the self-employed postmasters was formed last month to lobby Post Office bosses for greater support.

Post Office Ltd said that help was already being provided.

Caroline Cochrane and Leanne Main both have other jobs as they struggle to keep the doors of their Selkirk post office open.

They claim that a steady reduction in footfall, due to traditional services being offered online and elsewhere, and a refusal by Post Office Ltd to increase rates for transactions has put them on the brink of closure.

Ms Cochrane, who also works as a local councillor, said: "The only thing that has stopped us from closing is that we feel we are providing a service to the community.

"There are no banks in the town any more and many people, particularly the vulnerable, rely on us for helping with their finances and obtaining cash.

"The pressure is on us to make the business work, but the financial restrictions put on us by the Post Office make it almost impossible."

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Lynn Fergusson has been postmaster at the Denholm branch for 18 years

She said they had already had to cut hours and she could not see things improving.

"We make sure the staff are paid every month, and that's about all we can do right now," she added.

Since a campaign group was formed on social media last month, more than 700 self-employed postmasters have joined to vent their frustrations.

Lynn Fergusson has been behind the counter of the Denholm branch, near Hawick, for the past 18 years.

She is in the process of selling her corner store and said she did not know if the village would have the service by next year.

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Postmasters claim Royal Mail promotions are also taking business away from their branches

"It is a three-way slip with the demise of the high street, the decline of government services, and competition from Royal Mail attempting to take our customers away by online offers," she said.

"The Post Office seem to think we should be working harder to increase footfall, but there's no recompense from them.

"They need to look at what they are paying us per transaction. It is a struggle just to pay the bills before you start taking a wage."

Another postmaster from the Borders, who did not want to be identified, said that she took on a job in a care home as she was unable to pay herself.

She said: "I was working in the Post Office during the day and the care home at night just so the staff could get paid from the takings.

"The people at the top of the Post Office are all on salaries and they don't seem to care about the struggles of the self-employed postmasters.

"I don't think I'll still be here in a year, and the other postmasters I speak to all say the same."

Call for government help

The Post Office said that it did increase remuneration rates in August to help their postmasters, and that a new partnership with Amazon, DPD and DHL Express would lead to increased footfall.

However, it did warn that without further UK government support for business costs as energy prices rise, the struggles would intensify.

In a statement it said it fully recognised the pressures postmasters faced in a "challenging economic climate" to keep branches open.

It said the Energy Bill Relief Scheme announced in September was "not only welcome but vital" but additional help would be needed from the UK government.

"Postmasters demonstrated through the Covid-19 pandemic that they are there in person to help every community in the country," said a statement.

It added they continued to provide "essential services" but any loss of support with business energy costs could "significantly affect" their ability to stay open.