Postmasters fear electronic stamps will kill off their businesses

Sub-postmasters across the UK have seen a slump in trade following the abolition of pension books and a move to pay benefits direct into bank accounts.

The number of people visiting their shops, often vital community stores selling groceries and other goods, has fallen dramatically.

Now the launch of a new system by the Royal Mail allowing people to buy an electronic stamp over the internet, which can be printed by a home computer, threatens to take away even more trade.

Thousands of sub-postmasters have closed over the last few years because they can no longer make ends meet.

Losing the trade and income generated from people buying stamps could now pull the rug from under many more.

The new online postal service has already caused controversy because the new electronic stamps do not include the Queen's head.

This ends a tradition dating back to the world's first stamp, the Penny Black, which featured an image of the young Queen Victoria and was first issued in May 1840.

The Daily Mail and its website received a huge and critical reaction to the decision not to include the monarch's image on the electronic stamps, which will be a barcode.

Now the National Federation of SubPostmasters is taking up the attack on behalf of its members. It has opened talks with the Post Office to try and win a handling fee for sub-postmasters who process letters and packages where the public has bought the postage over the internet.

The federation's general secretary, Colin Baker, said: "If unaddressed, online postage could have a damaging impact on our members by forcing work out of post offices.

"Sub-postmasters are paid for selling stamps, and are not paid for simply accepting mail over the counter. However, we are addressing this issue. We are in negotiation with Post Office Limited for sub-postmasters to be paid for accepting mail.

"We do not want to appear to be stopping progress but we want progress in a way that adds to Post Office Limited's portfolio of services, and which helps sub-postmasters.

"We are in discussion with Post Office Limited and we have some firm commitments but we are continuing with our negotiations."

One sub-postmaster, who contacted the Daily Mail, described the changes as "driving an extra nail into the post office networks coffin". He accused the government and Royal Mail of "killing the network".

He added: "There will very soon come a time when I will have to let my staff go in order to earn a salary to put food on the table at night."

The Royal Mail said: "Royal Mail has had very constructive negotiations with the NFSP on remuneration aimed at providing the best possible support to sub-postmasters, who perform a vital role in serving customers."

However, the organisation refused to guarantee that this would include any extra money for handling items where customers have bought postage online.