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Two Nottinghamshire post offices have been described as being “at risk” due to a change in a compensation scheme for those running them. The Post Office first started a scheme in 2011 to modernise all of its branches, but an option was created for postmasters who did not want to change their contract by signing up to one of these new operating models.
The Post Office said those who chose to left the network would be entitled to a leavers payment worth 26 months pay under the ‘Hard to Place’ scheme. This pay was set to be given when a new postmaster had come forward to run a new branch in their place.
But the National Federation of Sub Postmasters (NFSP), a trade association representing post office operators, says this pledge has been changed. It says the Post Office has written to the 130 remaining branches who opted to leave the network offering them 12 months of compensation pay rather than 26.
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The NFSP says this puts the post office operators affected, including in Giltbrook and Underwood, in a “vulnerable” position. The association said: “The NFSP believes that this decision is morally wrong, as it may deprive many colleagues, of funds to ease their financial position through retirement.”
The Post Office says omore than 7,900 branches were modernised between 2011 and 2023 and that those who opted to leave the network were only entitled to an exit payment when a replacement branch was found. It says in the majority of the 130 cases, no retailer or independent businessperson has come forward to take on a Post Office.
These 130 postmasters have therefore been given three options, one of which is to continue trading on their existing contracts. Another option is to convert to a new style contract with an upfront compensation payment worth 12 months’ pay.
They can also leave the network with an exit payment worth 12 months’ pay, with postmasters being given six months to choose between the three options. The Post Office says if any replacement branches are secured within the next six months, the original postmaster concerned can still get the 26 month payment.
In a recent letter to those affected subpostmasters, NFSP Chief Executive Calum Greenhow wrote: “The Post Office are willing to treat postmasters today in the same manner in which they treated them throughout the Horizon scandal. Government consistently state that they have provided funding to the Post Office of £2.4bn, which should have included ring-fenced funds to allow all those colleagues from 2015 to exit the network with 26 months Leavers Payment.
“Our question remains, what has happened to that ring-fenced money?” The NFSP also says the Post Office made certain roles redundant, meaning there was “no dedicated team within the Post Office looking to find a replacement postmaster. This has left this group of postmasters in limbo since.”
Broxtowe’s Conservative MP Darren Henry, whose constituency includes Giltbrook, said: “I was today made aware of the changes being made to the ‘Hard to Place’ scheme. I am contacting the Giltbrook Post Office to enquire further.”
A Post Office spokesperson said: “Following a programme that first started over a decade ago, there are around 130 Post Offices, out of a network of over 11,500 branches today, that constitute a hard to place branch. Under the programme’s arrangements, agreed with the Government of the time, postmasters who wanted to leave the network were only entitled to an exit payment if and when a replacement branch was found.
“We have provided these 130 postmasters with three different options to consider and they have six months to tell us how they would like to proceed. We have dedicated colleagues able to support and provide advice on their options. We fully recognise that for these Postmasters this is a difficult time, but with limited funds we need to ensure we prioritise maintaining access in the areas our communities and customers need it most.”
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