More than 100 Post Office branches, currently employing about 1,000 workers, are set for closure amid an overhaul of the service.
The government-owned Post Office announced the changes on Wednesday, amid plans to boost postmasters’ pay by more than £250 million annually over five years.
There are around 11,500 Post Office branches across the UK, with most branches run by franchises or by independent subpostmasters.
The company is looking to offload some of its directly-owned branches that are loss-making and boost annual postmaster incomes in a “new deal.”
Speaking to postmasters on Wednesday, Post Office chair Nigel Railton said the company needs to learn from “past mistakes” and move forward.
“The value postmasters deliver in their communities must be reflected in their pockets, and this Transformation Plan provides a route to adding more than £250 million annually to total postmaster remuneration by 2030, subject to government funding.
“It begins a new phase of partnership during which we will strengthen the postmaster voice in the day-to-day running and operations of the business, so they are represented from the frontline to the boardroom,” he said.
The “New Deal for Postmasters” is subject to funding negotiations with the government, which Railton said are “positive and ongoing.” It accounts for up to £120 million in additional remuneration by the end of the first year.
‘Tone Deaf’
Post Office acting CEO Neil Brocklehurst said the overhaul will help serve customers who choose to shop on their local high street. But the 115 branches—the only remaining branches directly owned by the Post Office—located in city centres and serving customers in person remain at risk of closure.The Communication Workers Union (CWU) union called the plan to close Post Office branches “hot on the heels” of the Horizon scandal “as tone deaf as it is immoral.”
“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,” said CWU General Secretary Dave Ward.
Government Position
Speaking at the House of Commons on Wednesday, business minister Gareth Thomas said that no decisions have been made to close any or all of the directly managed Post Office branches.“The Post Office will continue to deliver on the 11,500 minimum branches requirement set by government. We have made clear to the Post Office that we expect them to consult with postmasters, trade unions, and other stakeholders before any individual decisions are taken.
He told MPs that ministers will consult with the public on the long-term future of the company and its management after a “decade of decline.”
“Doing nothing at the Post Office is simply not an option. There is more work to be done but there has to be change,” said Thomas.
The minister said there needs to be a “significant cultural change” at the Post Office and a transformation of its IT system.
Plans to set the company on a commercially sustainable footing come amid government changes to spending plans, which may prove to be a challenge for the Post Office.
Serving postmaster and a non-executive director on the Post Office Board, Elliot Jacobs, said in a statement that hikes in minimum wage and national insurance contributions have driven costs up.
“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,” he added.
