Victory for Mail as rural postmasters get pay rise
Branches’ £2k a year boost in battle to halt network crisis
STRUGGLING rural postmasters will be handed a 12 per cent pay rise to stem the crisis in the beleaguered network.
Following the Mail’s campaign to save vital services, the men and women who run 2,500 remote branches will see pay go up by an average £900 a year.
In a further boost, the Post Office said a £1,000-per-year rise for processing banking deposits will be brought forward from October to later this month. The double announcement means postmaster salaries will be lifted by £14.8million in total – with some pocketing an extra £2,000 per year.
Postmasters’ leaders last night said they are pushing for at least £50million of pledges for pay increases and investment in branches by the end of the year.
Yesterday’s announcement is the first milestone in a Government-backed pay review, which kicked off seven weeks ago. The news will lift towns and villages that fear losing their only post office.
Calum Greenhow, of the National Federation of SubPostmasters (NFSP), said: ‘We’re pleased to have secured these much-needed “quick wins” and we’re very thankful for the Daily Mail’s support.
‘These announcements are only the first outcomes of the pay review. Sub-postmasters can expect further positive news later in the year.
‘In the coming months, Post Office Ltd expect to report profits in the region of £50million-£60million. The NFSP is looking for the majority of that profit to be invested back into the network.’ In May postmasters told MPs that the 11,500-branch post office network was ‘looking over the precipice’ with thousands warning they could close or downsize in the next 12 months.
It also emerged more than 1,000 post offices had closed already. There has since been a series of promises from Post Office Ltd and the Government, who are the company’s sole owners.
Post Office minister Kelly Tolhurst pledged to fight for a £50million lifeline to rural post offices to be extended past 2021 and she kicked off the major review into postmaster pay. It is expected a full raft of changes to pay will be announced in the autumn, and implemented fully in April 2020.
The increase in payments to remote post offices will put an extra £2.2million in postmasters’ pockets. This represents an average increase of £880, or 12 per cent. The remote post offices are often the last shop in the village and are seen as irreplaceable.
The increase in fees for banking payments will add another £12.6million to postmasters’ takehome pay. In practice, the amount they receive for processing an £8,000 cash deposit will increase from £3.12 to £8.16.
That rise means each post office will get an extra £1,100 per year. However, critics point to the fact £110million has been wiped off postmaster pay since 2012.
Andy Furey, of the Communication Workers Union, said: ‘It’s a step in the right direction but it needs to be much more substantial. There’s got to be a lot more put on the table.’
Earlier this year, there were calls for former chief executive Paula Vennells to be stripped of her CBE after raking in £3.7million in pay and bonuses as postmasters struggled.
The Mail campaign is demanding that sub-postmasters are paid fair fees to reflect the vital services they provide and their long hours.
Miss Tolhurst said yesterday’s announcement ‘will make a real difference to postmasters’ incomes. I look forward to seeing further positive outcomes as it [the review] continues in the coming months.’
The Post Office said: ‘We are determined to secure and enhance the post office network for the future.’