Post Office issues update on future of 108 branches as 1,000 jobs at risk of being axed

The Post Office has made a huge announcement which will affect 108 branches across the UK. The postal group confirmed that all of its remaining directly managed branches will be franchised as part of a "New Deal for Postmasters".

The Post Office said the branches would be franchised by autumn, although noted that this was subject to government funding. The group said that the move would allow the communities to keep their local Post Office branch. Although, it is understood some closures could occur as franchises are moved to different premises.

The Post Office stressed that communities affected “will continue to be able to access Post Office services either at, or near to, the same location”.

Over 1,000 workers are set to be affected by the move. A franchise is a company that gives another person or business the right to sell goods under the company's name and branding. So, the process could see the sites taken over by large franchising businesses or postmasters themselves.

The Post Office says it remains committed to meeting the current requirement to have a minimum of 11,500 branches across the UK. Further details on the proposals will be shared with local communities and stakeholders for individual branches over the coming weeks.

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Last November, the group announced that the future of its directly managed branches would be reviewed, as these branches were losing the Post Office over £40million each year. The move is part of efforts by the Post Office to generate cash to help it increase pay for postmasters affected by the Horizon IT Scandal.

The Post Office said the plan, which is subject to government funding, will help it to increase postmaster remuneration by an extra £250million a year by 2030.

Nigel Railton, Post Office Chair, said: "Moving to a fully franchised network is one part of enabling the Post Office to deliver a ‘New Deal for Postmasters’, helping to create a long-term, sustainable future for the Post Office.

"By franchising these branches, we are protecting access to our services for communities right across the UK and realising £40 million worth of savings that will enable us to uplift postmasters’ remuneration by up to 10%.

“Over the coming months, we will continue to work with our unions to ensure that we treat our staff working in these 108 branches with care and respect through this transition, consulting with them on proposed changes.

"The 108 Post Offices will either stay in the same location where possible or be located close to the existing location, meaning customers will continue to have access to a full suite of products and services.”

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