Risk of branch closures if government ends its energy bills support, Post Office warns

Energy bills for the average post office have jumped 249 per cent and are set to rise by £6,000-£8,000 next year, putting them at risk of closure, Post Office said, calling on the government to continue to support the branches by extending the Energy Bill Relief Scheme beyond 31 March.

The call comes in the backdrop of new research from London Economics that has revealed that Post Office Ltd. and its 11,500 branches contribute £4.7 billion to the UK economy per year.

The research finds that post office branches play a significant role in supporting other livelihoods in the area, with visits to post offices generating over £3 billion a year of spending in nearby shops and businesses, helping keep local high streets alive.

“With over 11,500 branches across all four nations of the UK, post offices are catalysts for social but also economic activity. Together we generate almost £5bn in economic impact nationwide, supporting businesses of all sizes, thousands of jobs and delivering vital services,” Nick Read, Post Office chief executive, said.

“But our postmasters are not immune to the profound cost-of-living crisis and escalating energy bills, and they need help to survive this winter and beyond. [The] government should not overlook the important role they play in the economy and in keeping us all connected – both nationally and in every local community across the country – and we strongly urge them to extend the Energy Bill Relief Scheme support in place for post offices beyond 31 March 2023.”

Post Office further noted that millions of people across the country also rely on their community post office to access the support the government is already making available to them towards monthly energy bills. Between October 2022 and March 2023, post offices are expected to issue around 7.8 million Energy Bill Support Scheme vouchers to 1.3 million pre-pay energy customers.

Post office closures would be particularly harmful for rural communities, where over a quarter of post offices are considered the last shop in the village and the only accessible option for people to receive government support, it added.

To date, the Energy Bill Relief Scheme has helped cap the increase in energy bills for post offices, which has been a lifeline for thousands of Postmasters. The government is now reviewing the scheme to determine which businesses are most vulnerable and merit continued support, with a decision expected by the end of December.

Local postmasters express concerns

Postmasters across the country are struggling to cover their energy bills already and will be pushed further to the brink as energy prices continue to rise if government support ends.

“Our post offices are a lifeline for the local communities we serve, keeping businesses and people connected. Every single day people come through my doors looking for a friendly face, a chat, or help with everything from accessing cash, paying bills, topping up electricity and gas meters, and sending packages to loved ones,” Azim Shaikh, postmaster of Blackpool and Whalley post offices, commented.

“My energy bills have doubled in the past few months and I’m now struggling to pay staff wages – we need the government to do more to help support us by extending its energy support to help keep us alive.”

Shaikh, like thousands of other small business owners running Post Office branches, stayed open throughout the pandemic lockdowns to ensure his community could keep connected with his essential services.

He is committed to continuing keeping his doors open again so his community can continue to access vital services, including government pay-outs that many people, particularly the most vulnerable in his community, rely upon. However, his energy bills have doubled in the past few months, stretching the business thin and aithout an extension of the government’s energy support, his post offices will be at risk of closure.

Scott Benton, MP for Blackpool South, has called for support to post offices after visiting Shaikh’s Blackpool Post Office branch last week.

“It was great to visit my local post office in Blackpool, where I saw first-hand the amazing work that Azim, like many postmasters across the country, do for the local community. Post offices will be vital to thousands of customers over the winter who rely on its essential services but it is clear that post offices need our support too,” Benton said.

“Branches, like Azim’s, contribute so much to the national and regional economies and we are all grateful for the service of postmasters here in Blackpool, and across the UK.”