A Chester-le-Street sub-post office is facing closure as part of a national shake-up of the service.

Post Office Ltd is carrying out the restructuring because it says there are too many branches in many towns and cities for the amount of business there is.

Government plans to pay benefits directly into recipients' bank accounts will mean that some businesses are no longer viable.

The sub-office in Picktree Lane is set to close in August.

David Mellows-Facer, Head of Area for Post Office Ltd, said: "Proposals to close Post Office branches are not made without considerable research and discussion. We are anxious that customers and all relevant organisations understand our rationale and have the opportunity to give us their views.

"We have a responsibility to ensure that customers in Chester-le-Street will continue to have reasonable access to local Post Office products and services.

"Even after any changes are made, well over 95 per cent of customers will still live within a mile of a Post Office branch.

"Having met with the sub-postmaster and other local sub-postmasters, we have concluded that if the Picktree Lane branch was to close, it would improve the long-term prospects of the other branches in the area.''

He added that the town's main post office in Front Street and the South Pelaw sub-office would be 'fully geared up' if the closure proceeds.

No final decision will be taken until managers have considered the views of people in the area.

The public are being encouraged to write to Mr Mellows-Facer at National Consultation Team, PO Box 641, St Albans, AL1 5XN by Tuesday, June 24.