Deal gives postmasters certainty

The long-term arrangements between the Post Office and the Royal Mail will be reached before the two are separated under the Government’s controversial privatisation plans.

Sub-postmasters welcomed the move, but the Communication Workers Union said it was the end of an era for a fully publicly-owned postal service.

Postal Affairs Minister Edward Davey said: “On coming to office, we found a demoralised Post Office, still losing substantial sums despite years of cutbacks and closures.

“So, a year ago, I set out a radical plan to transform Post Office’s future, with £1.34bn of Government support and investment but without any closure programmes.

“Since then the Post Office has made good progress to become more competitive, building on its strengths.”