The National Federation of SubPostmasters has attacked Post Office Ltd managers for building profits and funding their bonuses through slashing subpostmasters’ pay.

In its annual report and accounts, Post Office Ltd (POL) reports a £33m increase in operating profit.

But National Federation of SubPostmasters (NFSP) says its own figures show this growth has been achieved through a direct combination of increased Government subsidy payments of £30m and a £5m reduction in payments to subpostmasters.

The NFSP warned that POL’s reports of growth mask a deepening crisis on the ground for post offices.

And it states that post offices would close without urgent Government intervention to reverse the decline in subpostmasters’ income and protect payments placed in jeopardy by the proposed sell-off of Royal Mail.

Honley sub-postmistress Brenda Bodenham, who is Assistant Branch Secretary of the West Yorkshire NFSP, said: “I get members coming to me on a daily basis getting very, very upset that their income is being slashed day in and day out particularly when it’s because of a ‘champagne culture’ at the top of the Post Office.”

NFSP General Secretary George Thomson said: “These figures once again expose the continued decline in pay to subpostmasters which has now reached a point where the future of thousands of post offices is at risk.

“There appears to be a culture within POL of deliberately and actively choosing to grow profits and justify management bonus payments through reducing pay to the very people who run our post offices.

“Subpostmasters are being starved out of their investments and out of the post office network.

Mr Thomson said the next year is looking even bleaker for post offices. POL has already slashed by half payments for DVLA services at post offices and has unilaterally cut a £2.2m payment for sorting mail received at post offices.

A Post Office spokeswoman said: “These are challenging times for all businesses operating on the High Street, but with developments such as our plan to launch a current account the Post Office is confident about growing our business.

“Our figures show that half of Sub Postmasters have seen the pay they receive for selling Post Office services increase during 2012/13.

“In 2012/2013 we have transformed 500 post offices, meaning longer opening hours and improved environments for customers.”