(qlmbusinessnews.com Wed. 13th Nov, 2024) London, UK —
UK Post Office Plans Major Overhaul – Branch Closures and New Deals for Sub-Postmasters
More than 100 Post Office branches and hundreds of head office roles may face closure in a sweeping reorganisation of the UK’s Post Office network. The proposed changes include plans to close 115 loss-making Crown Post Offices, which are fully owned and operated by the Post Office and located mainly in urban centres. Approximately 1,000 jobs could be affected by these closures, with additional head office staff also facing uncertainty.
Nigel Railton, the new interim chairman of the Post Office, will address employees this Wednesday to outline the findings of an ongoing strategic review initiated earlier this year. This review, aimed at strengthening the financial sustainability of the Post Office, could also involve franchising out certain locations to third-party operators.
This restructuring comes amid scrutiny from the Horizon IT scandal inquiry, which highlighted wrongful prosecutions of hundreds of sub-postmasters due to a flawed computer system that incorrectly flagged financial discrepancies. Railton has emphasised the need for a new agreement prioritising sub-postmasters, positioning them more centrally within the Post Office's business model.
Currently, the UK has a network of 11,500 Post Offices, most of which are independently owned franchises. Crown Post Offices, the branches now under threat, are among the few directly staffed by Post Office employees. The restructuring announcement follows statements by Post Office minister Gareth Thomas and Business Secretary Jonathan Reynolds, who called for a modernised Post Office better aligned with public needs, especially in the wake of High Street bank closures.
Reynolds also suggested that the Post Office could offer banking services to fill the void left by bank branch closures, potentially expanding its role in local communities. He further acknowledged public support for the Post Office and indicated that a more streamlined headquarters with better compensation for sub-postmasters is essential to the organisation’s long-term success.
The Post Office is set to announce a “new deal” on Wednesday, which is expected to increase sub-postmasters' revenue shares and reinforce the branch network for communities across the UK. This decision has seen support from the Department for Business and Trade, with ongoing discussions between Railton and government officials about fortifying the Post Office network to ensure its future viability.
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