The Post Office will double pay for postmasters as part of a £250m investment, promising a “new deal” in the wake of the Horizon scandal.
Postmasters will get a larger share of revenue and more say in the running of the business as part of a sweeping overhaul announced by chairman Nigel Railton on Wednesday.
However, around 1,000 jobs are at risk as the Post Office plans to offload 115 of its 11,500 branches, meaning they will either be transferred to retail partners or postmasters, or closed.
Mr Railton said the shake-up will also offer a “new deal for postmasters” as the Post Office tries to move on from the Horizon IT scandal, which saw hundreds of sub-postmasters wrongly prosecuted for errors caused by the company’s faulty IT system.
Under the plans, which are subject to government funding, branch pay will double by 2030, a jump of £250m.
Mr Railton said: “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.
“We can, and will, restore pride in working for a business with a legacy of service, rather than one of scandal.”
He added the overhaul also “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.”
However, the Communication Workers Union (CWU) criticised the plans. Dave Ward, the general secretary of the CWU, said: “For the company to announce the closure of hundreds of Post Offices hot on the heels of the Horizon scandal is 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.”
Mr Ward called for the Post Office to abandon the planned closures and urged the Government to intervene “over this shambolic decision.”