Cuts in post office workers’ wage bills threaten to put branches across the Midlands out of business, staff have warned.

The National Federation of Subpostmasters has warned of a ‘double squeeze’ of falling income from Post Office Limited, and soaring staff and utility bills.

Roger Millwater, who has been a sub-postmaster for 18 years and heads the Bristnall Fields Post Office in Pound Road, Oldbury, says workers are being left in an impossible position.

The 58-year-old said: “The cost of living has gone up again and my wages have been cut. We may see increases in National Insurance, minimum wage has increased, staff receive more holiday pay and my clerks are paid while they attend courses – I pay for all that myself and I am now getting paid less.”

Post Office Limited pays all the country’s 9,000 sub-postmasters a fixed income, known as a ‘core tier payment’. Although the amount varies according to the size of the business, all receive a minimum of £10,000 a year.

But the National Federation of Subpostmasters says this is set to drop this month by an average of £100 a month, or £1,200 a year. At the same time, the second tranche of sub-postmasters’ income – the commission paid on each transaction — is also being slashed.

Mr Millwater, whose wife Anne Millwater runs the Dog Kennel Lane Post Office, in Londonderry Road, Oldbury, said: “We are aware how much people rely on us and I think Royal Mail group know that and are playing on that.”

Surinder Panesar, aged 62, a subpostmaster at the Wolverhampton Road post office in Walsall, said: “It is affecting us quite a bit. Postmen get a pay rise and we don’t, it’s completely unfair to the postmasters.”

Narinder Devgun, the subpostmaster at Heath Hayes Post Office in Hednesford Road has worked for the Post Office for more than 25 years. He said: “Effectively, they’ve got us over a barrel.”