THE government has unveiled £640m in additional funding to completet the modernisation of the Post Office network.

The additional money – covering the three years up to 2018 to maintain over 11,500 Post Office branches – includes £20m for rural post offices.

It was announced on Thursday (28 November).

Consumer and postal affairs minister Jo Swinson said the investment will ensure Post Office branches met customer demands with longer opening hours and faster services.

For the first time, there would also be a dedicated fund of £20 million to invest in smaller community branches, said the government.

These Post Offices – around 3,000 branches – were at the heart of often deprived or relatively isolated communities, where they were most needed.

The government said it may not be suitable for these branches to under go a full conversion.

But given the crucial role played by these branches in their local communities, it was important that both they and their customers benefited from significant investment.

The money dedicated to these branches could be used, for example, to invest in new equipment, change the layout of branches and improve signs.

Ms Swinson said: "The Post Office is a vital part of our social fabric at the heart of our communities. Its network of over 11,500 branches has unparalleled reach up and down the country.

"The government is keen to maintain the key role that Post Offices play.

"Today's investment will continue to build on the success of the Post Office modernisation programme which is already well underway.

"We recognise the important service that Post Offices provide to small and often remote communities, sometimes even as the only shop in the area.

"This is why we are dedicating specific funding to support modernisation and strengthen the existence of these branches."

In the modernised branches, subpostmasters have been able to combine Post Office and retail counters rather than run a separate, standalone Post Office counter in their shops.

The government says this has created more space to sell more goods and allowed subpostmasters to staff their shops more efficiently.