Vital role of urban post offices

The post office network is losing £200m a year

The vital role played by post offices in deprived urban areas has been overlooked, according to research.

The New Economics Foundation (nef) report says there are significant knock-on effects for businesses, community groups and local people.

More than eight urban post offices have closed for every rural PO closure in the past two years.

And one in six of the urban closures took place in deprived areas, where their role is "particularly valuable".

The research was carried out for Manchester City Council after 20 post offices were closed in the Manchester metropolitan area last year.

Closure can trigger a 'tipping point' leading to a downward cycle that leaves ghost communities with very few shops and services left Guy Rubin, nef

Evidence from the Trade and Industry Select Committee last month showed that subpostmasters in urban areas are also under greatest threat from withdrawal of the Post Office Card Account in 2008, used by millions to access pensions and benefits.

The account is currently worth £403 a month to subpostmasters in urban deprived areas, compared with a national average of £249 and nef believes this lost income could prove to be the "tipping point" at which many post office are no longer viable.

The report highlights the impact of the Manchester closures on local businesses, schools, community groups, the local economy and the most vulnerable local people.

Guy Rubin, senior researcher for nef, said: "In urban areas post office closures deal a double blow as they are not only an anchor for the local community, but also for local enterprise.

"Their closure can trigger a 'tipping point' leading to a downward cycle that leaves ghost communities with very few shops and services left."

In October, a four million name petition was handed into Downing Street, calling for action to safeguard the network of rural post offices.

The post office network is losing £200m a year and the government is widely expected to require some closures as part of a subsidy renewal agreement.

Trade and Industry Secretary Alistair Darling has said doing nothing was not "sustainable" and the Post Office needed to adapt.

The postal services watchdog, Postwatch, says the number of post offices has fallen from 18,393 in 1999 to 14,376 in 2005.