How postmasters lost £112m in fees

Plummeting payments revealed amid demand to strip £3.7m boss of her CBE

ThE fees that sub-postmasters are being paid to provide essential services have plummeted by £112million since 2012 – despite a crisis that threatens the future of the network.

The National Federation of Sub-postmasters has called for renumeration to be increased as many of their members are struggling to make ends meet.

The row comes after the Mail reported that former chief executive of Post Office Limited, Paula Vennells, was paid £3.7million over six years – leading to calls for her to be stripped of her CBE.

Every time a branch provides a service such as selling stamps, processing passport applications or handing out benefits, they get paid a levy by central company, Post Office Limited.

But the total amount of fees paid to struggling sub-postmasters has fallen from £483million to £371million since 2012, accounts reveal.

The sub-postmasters claim that although part of this fall is due to customers heading online, it is mainly because the individual fees they are paid for providing some of these services have actually been cut.

They say it is outrageous that some of these fees have been reduced at a time when their members are struggling to survive financially.

The Mail has been campaigning for better protections for Britain’s post office network, with thousands facing the threat of closure. Many subposters say that the money they make is so low, that they are not even earning the minimum wage for the hours they work.

Former Post Office chief executive Mrs Vennells, 60, received over £3.7million over six years – this included her salary, bonuses and cash in lieu of penfor sion and benefits. Last year, she was awarded two hefty bonuses adding up to £390,000 on top of her £225,000 base salary. her total pay jumped 7 per cent to £720,000 – nearly five times Theresa May’s £150,402-a-year salary.

Sub-postmasters yesterday voiced their support for Mrs Vennells’s CBE to be taken off her.

Last week, MPs were told changes to prevent post office closures had been an ‘unmitigated disaster’ and left the network ‘looking over the precipice’.

In the face of mounting opposition, the Post Office has now been forced to launch a ‘special review’ into the fees paid to sub-postmasters. Last night, campaigners and politicians called an immediate promise to boost these payments to ensure the network is sustainable.

Calum Greenhow, of the National Federation of Sub-Postmasters, said: ‘We would like to see a commitment now that remuneration will be increased. The Government must also give the customers the chance to access services in the post office if they don’t want to go online.’

Labour whip Chris Elmore said: ‘Many post offices rely on postmaster commission to remain financially sustainable. The £112million black hole... has left many post offices struggling yet further. It’s clear the Government isn’t doing enough to ensure the Post Office delivers for the people who need it most. Ministers must act swiftly and decisively to ensure the Government invests in our community post offices.’

The Post Office Limited has also been forced to renegotiate a deal with high street banks over the fees paid to sub-postamsters for banking related services. From October they will increase fees paid to postmasters for processing an £8,000 deposit from £3.12 to £8.16. The company said it had invested heavily in postmasters’ retail business as part of a recent transformation plan.

A Government spokesman said: ‘It is crucial that running a post office is attractive and sustainable... the Post Office will be undertaking a wide review of postmaster remuneration.’