RURAL sub-postmasters have poured scorn on a £450m rescue package aimed at safeguarding the future of thousands of rural post offices.

On Monday, Patricia Hewitt, Secretary of State for Trade and Industry, announced a £450m national support fund to secure the viability of rural post offices over the next three years.

With £66m a year to maintain postmasters' income levels, £79m in year one and £74m in years two and three to fund front line services and IT systems and a £25m flexible fund to develop services, the package is expected to be worth £5.5m a year to the North-East and £12m a year for Yorkshire.

But the fund, which has been generated using past Post Office profits, has been dubbed a con by local sub-postmasters.

Jean Kendall, executive officer for the National Federation of Subpostmasters North East, and owner of Wolsingham Post Office, said: "The Government has made a big play about this but the £450m is coming from money paid to them out of Post Office profits.

"The money has been held on reserve in gilts while the Post Office never had enough money to invest in itself.

"This is not new money, this is the Post Office only being allowed to take back its own money and it will not put a penny piece in our pockets.

"If the Government really wants to secure our future then it must stop pushing claimants to accept payments only by bank credit transfer.

"pension and allowance payments make up 40pc of our fixed income, if we lose this we lose all the other transactions that go along with picking up cash at the counter."

The sentiments were echoed by Anne Pratt, who has run Gainford Post Office for 23 years.

She said: "It really is a bit of a con. I don't believe larger offices will see a penny. This money will only help to re-open very small community offices which serve a handful of people.

"Twisting people's arms to use banks for allowance and pension payments must stop. People don't like change and should be allowed to use their local post office without a fight."

A new post office card system with pin number will replace pension and allowances books from April next year - a move which is not welcomed by customers or staff.

Linda Marshall, officer in charge of Leyburn Post Office, said: "Nobody wants this system. Pensioners may have difficulty remembering and keying in pin numbers on the new pads and we are not allowed to help them.

"If the Government wants to keep rural offices open it should not give money in one hand and take away our business in the other."

Larry Graham, of Hutton Rudby Post Office in Cleveland, added: "Our income has been frozen by the Post Office for four years and I can't see how maintaining present income levels will make us better off.