115 Post Offices are facing the axe in a major overhaul of the Post Office business. This move is part of a “transformation plan” which could result in the closure of 115 branches and the loss of 1,000 jobs, including hundreds at its head office. The Post Office chairman, Nigel Railton, shared that the plans aim to provide a “new deal for postmasters” by increasing their share of revenue and involving them more in the business operations. The company is looking to move beyond the Horizon IT scandal that wrongfully convicted several subpostmasters.
Mr. Railton made the announcement at the company’s headquarters in London, stating, “The Post Office has a 360-year history of public service, and today we want to secure that service for the future by learning from past mistakes and moving forward.” The 115 branches at risk are Crown Post Offices situated in city centres and operated by Post Office employees. These are the only remaining branches directly owned by the Post Office, decreasing from nearly 400 in 2010. The aim of the plan is to franchise the branches or transfer ownership to retail partners such as WH Smith, Tesco, Morrisons, and the Co-Op, who already operate around 2,000 Post Offices nationwide.
The Communication Workers Union (CWU) has raised concerns about the plan, calling on the Post Office to halt the closures and for government intervention. CWU general secretary Dave Ward expressed that the closure announcements following the Horizon scandal were insensitive and urged to protect the jobs of its members. However, the Post Office insists that the strategy is to strengthen the Post Office network by franchising branches or transferring ownership, aiming to support postmasters more effectively through a new postmaster panel and a consultative council.
The Department for Business and Trade acknowledged the importance of Post Offices in communities and their services for local residents. They stated being in active discussions with Nigel Railton on the proposed changes to enhance the involvement of postmasters in the organization. The full list of branches at risk includes various locations across the UK. Nevertheless, the Post Office reiterated its commitment to creating a new operating model to ensure organisational effectiveness.
As part of the transformation plan, the Post Office aims to double average branch pay by 2030 and provide £120 million in additional pay by the end of the first year. The company seeks to restore pride in working for a business with a legacy of service, rather than scandal. With a history of public service spanning centuries, the Post Office is determined to evolve and adapt to secure its future while prioritising the interests of postmasters and the communities they serve.