The Post Office plans to close 115 branches and says about 2,000 jobs are at risk as part of a plan that will see post office operator pay increase by £250m over the next five years.
The Post Office confirmed on Wednesday that it is seeking to offload 115 branches that 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, WHSmith and Morrisons and about 9,000 are operated by independent subpostmasters 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.”
More details to follow