The Post Office plans to close 115 branches and says about 2,000 jobs are at risk as part of a plan that will result in post office operator pay increasing by £250m over the next five years.
The Post Office confirmed on Wednesday that it is seeking to offload 115 branches it currently centrally owns, known as crown post offices, but said it expects to maintain the total network at 11,500 branches across the UK.
The plans come against the backdrop of the public inquiry into the Horizon IT scandal, described as one of the worst miscarriages of justice in UK history.
The move puts approximately 1,000 jobs at risk, although the Post Office expects that all the branches will be refranchised to new owners over the next five years.
Approximately 2,000 branches are operated by partners such as Tesco, WH Smith and Morrisons, and about 9,000 are run by independent operators that have a contract with the Post Office.
The Post Office is also “streamlining” its central operations, with speculation that this will lead to about 1,000 further job cuts.
The plans also include increasing post office branch owner remuneration by £250m annually by 2030, with up to £120m in additional remuneration by the end of the first year of the five-year plan, a 30% increase in revenue share.
“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,” said 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 Post Office said that the planned increase in the operators’ share of revenue remained subject to securing funding from the government, which is the sole shareholder, but that it would double the average remuneration at each branch by 2030.
The government said it is in “active discussions” with the Post Office about the proposed 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 said. “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.”
Part of the “new deal” also includes establishing a new postmaster panel consisting of serving branch owner operators to “help the business to improve the support and training it provides to postmasters”.
The Post Office currently has two postmaster non-executive directors on its board – Saf Ismail and Elliot Jacobs – a measure introduced in 2021 in a move to repair relations and improve oversight as part of an attempt to overhaul the organisation and “right the wrongs of the past” in the wake of the Horizon scandal.
“The last few years have been challenging for many retailers and postmasters are no exception,” said Jacobs. “It’s vital that the Post Office embarks on this major transformation plan so that we have a sustainable financial future, and one that benefits the thousands of postmasters who work tirelessly day-in, day-out to support the local people and businesses who rely on us for essential everyday services.”
The full list of the 115 branches at risk
Bangor
Belfast City
Edinburgh City
Glasgow
Haddington
Inverness
Kirkwall
Londonderry
Newtownards
Saltcoats
Springburn Way
Stornoway
Wester Hailes
Barnes Green
Bransholme
Bridlington
Chester Le Street
Crossgates
Eccles
Furness House
Grimsby
Hyde
Kendal
Manchester
Morecambe
Morley
Poulton Le Fylde
Prestwich
Rotherham
Salford City
Sheffield City
South Shields
St Johns
Sunderland City
The Markets
Birmingham
Breck Road
Caernarfon
Didsbury Village
Harlesden
Kettering
Kingsbury
Leigh
Leighton Buzzard
Matlock
Milton Keynes
Northolt
Old Swan
Oswestry
Oxford
Redditch
Southall
St Peters Street
Stamford
Stockport
Wealdstone
Barnet
Cambridge City
Canning Town
Cricklewood
Dereham
Golders Green
Hampstead
Harold Hill
Kilburn
Kingsland High Street
Lower Edmonton
Roman Road
South Ockendon
Stamford Hill
Bideford
Dunraven Place
Gloucester
Liskeard
Merthyr Tydfil
Mutley
Nailsea
Newquay
Paignton
Port Talbot
Stroud
Teignmouth
Yate Sodbury
Baker Street
Bexhill On Sea
Cosham
Great Portland Street
Croydon High Street (10)
Kensington
Knightsbridge
Melville Road
Paddington Quay
Portsmouth
Raynes Park
Romsey
Westbourne
Windsor
Worlds End
Aldwych
Brixton
Broadway
City of London
East Dulwich
Eccleston Street
High Holborn
Houndsditch
Islington
Kennington Park
London Bridge
Lupus Street
Mount Pleasant
Vauxhall Bridge Road