The Post Office has announced a significant overhaul, with the closing of 115 branches and hundreds of jobs at risk.
The move forms part of a transformation plan announced this morning. The plan aims to boost the income of the UK’s postmasters by up to £250m annually by 2030.
The Post Office branches under review are its 115 centrally owned Crown locations, found in high-traffic areas and run by direct employees.
These branches have over 1,000 staff in total.
Post Office branch changes
For the past few years, the Post Office has tried to move towards franchise models with companies such as Tesco and WH Smith. Around 2,000 branches are run by such commercial partners, and some 9,000 are run by independent operators.
The Guardian reported that head office job cuts could result in a further 1,000 job losses, while the Post Office hopes the 115 branches will be franchised within five years.
Nigel Railton, who was appointed chair in January of this year after his predecessor Henry Staunton was fired, has led potential closures.
He stated that the organisation was in desperate need of a ‘fresh start’, 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 for the benefit of all postmasters.”
The transformation plan is hoped to increase the share of revenue postmasters receive, and envisions postmasters gaining an extra £120m in the first year alone, marking a 30 per cent uptick in revenue share.
Over the next few years, the Post Office aims to double the average annual branch remuneration, boosting earnings for postmasters who often operate on increasingly slight margins.
Railton emphasised the need for this change, as he said: “The value postmasters deliver in their communities must be reflected in their pockets.”
The new deal also sets to make automation improvements to reduce manual tasks in its cash and mail services, allowing postmasters more time to serve their customers.
The Horizon scandal
This announcement comes at a time of scrutiny for the organisation, which has faced both public and government-led pressure due to the Horizon scandal.
Between 1999 and 2015, hundreds of sub-postmasters were wrongfully prosecuted due to faulty software that led to financial inconsistencies.
The current inquiry is nearing its end after two and half years, urging Railton to reset the organisation’s reputation.
He claimed that this structure, which will integrate postmasters into decision-making processes through a newly formed Postmaster Panel and Consultative Council, will lead to a ‘new phase in partnership’.
He said: “We can, and will, restore pride in working for a business with a legacy of service, rather than one of scandal.”
A Department for Business and Trade spokesperson told the Guardian: “The government is in active discussion with Nigel Railton on his plans to put postmasters at the centre of the organisation and strengthen the post office network for its long-term future.”
But the chief of the Communication Workers Union (CWU), Dave Ward, called on the government to intervene over what he said was a “shambolic decision” and “tone deaf as it is immoral”.
He said: “CWU members are victims of the Horizon scandal – and for them to now fear for their jobs ahead of Christmas is yet another cruel attack… it seems the Post Office has learned no lessons from its chaotic and uncoordinated mistakes of the past.
“We call on the Post Office to immediately halt these planned closures and the attached consultations… and engage with the CWU on protecting jobs and services.”