London (Parliament Politics Magazine) – UK Post Office prepares to shut 115 branches and expresses almost 2,000 jobs are in danger as part of a strategy that will result in post office operator pay rising by £250m over the next five years.
The Post Office confirmed on 13 Nov 2024 that it was aiming to offload 115 branches, known as crown post offices, it centrally holds, but said it expected to keep the total network at 11,500 branches across the UK.
How many jobs are at risk from the closures?
The plans come against the backdrop of the public inquiry into the Horizon IT scandal, defined as one of the most flawed miscarriages of justice in UK history. The move puts at risk around 1,000 jobs, although the Post Office expects that all the branches will be refranchised to the latest owners over the next five years.
Around 2,000 branches are operated by partners including Tesco, WH Smith and Morrisons, and nearly 9,000 are run by independent operators that have an agreement with the Post Office.
The Post Office is also “streamlining” its central functions, with speculation that this will lead to nearly 1,000 further job cuts.
The projects also include expanding post office branch owner remuneration by £250m annually by 2030, with up to £120m in additional revenue by the end of the first year of the five-year plan, a 30% increase in revenue share.
What is the government’s stance on post office closures?
“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,” stated Nigel Railton, the chair of the Post Office. “We can, and will, restore pride in working for a business with a legacy of service, rather than one of scandal.”
The government stated it was in “active discussions” with the Post Office about the submitted cuts. “Post offices are an integral part of the communities they serve and the services they provide for local people,” a spokesperson for the Department for Business and Trade stated. “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.”