PLANS for mobile post offices to replace many branches being axed are likely to fail because of a lack of cash, a committee of MPs warns today.

The verdict is a blow to the government’s pledge that postal services will survive in far-flung areas through the creation of “outreach” outlets.

A total of 500 have been pledged across England – in village halls, community centres and pubs – to calm public anger at the loss of 2,500 sub-post offices.

Those 2,500 earmarked for closure include 38 in Merseyside and Cheshire – nine in Liverpool, five in Wirral, five in Warrington and five in Chester.

The government has insisted the closures are necessary to stem Post Office losses running at £4m a week and to save the rest of the network.

But today’s report, by the Commons business and enterprise committee, questions those figures by suggesting Post Office Ltd is starved of cash by Royal Mail Group, its parent company.

But the warning that outreach funding is “inadequate” – and should be investigated by the National Audit Office – will cause most alarm.

The committee was told outreach projects would be paid no more than £3,000 per year – £12 per day, for up to 10 hours work.

Peter Luff, the committee’s Conservative chairman, said: “We remain concerned that funding for outreach services may be inadequate.

“If this is the case, outreach services will fail and the network be diminished.

“A significant amount of funding is provided to sustain the network.

“We need to be confident the public receives services this is meant to secure.”