HC Deb 16 January 2003 vol 397 cc776-7W
Ms Munn

To ask the Deputy Prime Minister what assistance he is giving to post offices in low income areas of cities. [90941]

Mr. McNulty

The £15 million Deprived Urban Post Office Fund was launched by the Office of the Deputy Prime Minister on 30 December 2002. It provides grants of up to £50,000 to sub-postmasters in the most deprived urban areas of England to modernise their branches as part of the Government's long-term drive to regenerate impoverished urban communities.

The grant can be used on new retail facilities, shop alterations or improved security. The aim is to reduce the risk of closure of those branches in deprived urban areas, which are not closing as part of the Post Office Urban Network Reinvention scheme. In order to secure funding sub-postmasters will need to show that they are at risk of closure and that the grant will significantly reduce this risk.

More than 400 post office branches in the 10 per cent. most deprived wards without an alternative branch for more than a half a mile will be given priority under the fund. Initially only they will be able to apply for funding. After six months other post office branches in the 10 per cent. most deprived wards will be able to apply and after one year branches in the rest of the 20 per cent. will also become eligible.

Separate schemes have been announced for the rural network and the Welsh network, with schemes under development in Scotland and Northern Ireland.