A VILLAGE postmaster has warned that his business will definitely be forced to close because of the Government's new electronic pension payments system.

Arthur Sanders, who is the 67-year-old sub-postmaster at Sadberge, near Darlington, says his business is already struggling and will no longer be viable when he eventually decides to retire.

"There is no maybe about it. It is a serious problem and it is a fact of life that this post office will definitely close," he said.

The post office is the only shop in the village. It serves as a newsagents, grocery store and prescriptions service for the local doctor's surgery.

But the Government's decision to pay benefits directly into bank accounts, which was introduced last month, will mean a steep decline in customers for Mr Sanders' business.

"The Government's new system is just done to save money," he said.

"But it doesn't make sense, because they are the owners of the post office and rural post offices all over the country will be unable to survive.

"I open at nine in the morning and close at 5.30pm six days a week and my post office salary is less than £12,000 a year. The post office pays for nothing and if I decided to retire next year nobody would buy it."

Mr Sanders estimates that about half the village's 1,000 population are pensioners.

"The old ones won't know where they are without the post office," he said.

"It is the hub of the village."

The threat of the post office closure comes less than six months after villagers were told Sadberge Primary School may have to shut.

Sadberge ward councillor Brian Jones said: "There are a lot of elderly people and it will cause problems for them if the post office shuts.

"It's very sad, but I think it is inevitable."

A spokesman for Post Offices Ltd said: "If a postmaster does resign then we do our utmost to ensure a post office service continues in the area.

"We advertise and look for someone with suitable premises.

"But in these circumstances we are very much in the hands of the local community."

* Villagers who still want to collect pensions and benefits at the post office can opt for a new Post Office Card Account.