Post Office branches at the heart of communities across the county could be at risk if subsidy from Government is not renewed.

This is the stark warning from sub-postmasters and unions who say without the continued Core Tier Payment many in Kent would simply close because they would no longer be economically viable.

The current subsidy arrangement is due to finish at the end of March, leaving the future of many branches uncertain beyond that point.

A Whitehall spending review this autumn was expected to decide on the continuation of the funding, but there are doubts as to whether the exercise will now be completed because of the Covid-19 economic crisis.

State aid for the post office network is also covered by rules previously agreed with the European Union, meaning uncertainty over Britain's withdrawal terms is also impacting the decision on the continued payments.

Tim Chapman, sub-postmaster in Yalding, receives around £1,000 per month in subsidy, which is taxed as earnings, to help keep his branch open. But he says without it he would have little choice but to shut his doors for good.

"If we closed a lot of people would be severely impacted and inconvenienced," he said.

"We have quite an elderly population here who don't necessarily have use of a car, or are not happy riding the bus, they like to use the post office.

"The Post Office would likely arrange an outreach facility for the village, a four-hour session once a week in the village hall or similar. Many villages now have this service operating.

"Since Covid our mail volume has increased by about 300%, every post office in the land will tell you the same, and will probably remain high for the foreseeable future as more and more shopping moves online.

"Our nearest ATM is in East Peckham. So we are the only source of cash in the area.

"So if we closed it would be a double whammy for our village. I don't want to close, but I do need to make a living."

"The threat is very real..."

Government subsidy is paid to Post Office Ltd and is designed to cover the operating costs of the post office network. According to the National Federation of Sub-Postmasters, the total amount of subsidy has already been cut from £210m in 2012/13 to £50m in 2020/21.

Mark Baker, Communication Workers Union branch secretary for postmasters, said: "The threat is very real."

"Rural post offices will not be top of the Government's list," he added, reflecting on the increased pressures brought about by the coronavirus pandemic.

The economic hit caused by the pandemic has knocked Post Office income as branches are selling fewer travel-related products and banking activity, seen as the future for the network, has decreased as a result of restrictions on businesses.

Geoff Crouch, sub-postmaster in Cranbrook, told us the future looks bleak for many branches if funding is not in place after March 31.

He said: "I would have to consider closing, as it cannot be subsidised by our retail business, and in many places the post office is the last bank in town."

A Post Office spokesman said: "Postmasters across Kent have been going the extra mile for their communities throughout the Covid-19 pandemic and we're pleased that so many have keep operating so that customers can access vital banking, mails and bill payment services.

"We are working closely with our shareholder, UKGI, regarding future funding for the Post Office network."

The Department for Business, Energy and Industrial Strategy - which is responsible for the Core Tier Payment - has been approached for comment.

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