Post Office Crisis Deepens: 115 Branches Face Closure in Historic Restructuring
In a significant development that marks one of the most substantial changes to Britain’s postal network in recent years, the Post Office has announced plans to close 115 branches, putting approximately 1,000 branch workers and hundreds of head office positions at risk. This dramatic restructuring comes as the organization grapples with financial losses and the ongoing fallout from the Horizon IT scandal.
Breaking Down the Changes
The state-owned institution, which has served communities for 388 years, currently operates 11,500 branches across the UK. The planned closures specifically target loss-making Crown Post Offices—branches directly owned and operated by the Post Office rather than franchised locations. These branches, typically located in city centers, represent some of the network’s most visible presence in urban areas.
Key points of the restructuring include:
- 115 Crown Post Offices have been marked for potential closure.
- Around 1,000 branch employees are affected.
- There are hundreds of additional head office jobs at risk.
- Focus on finding alternative franchise arrangements where possible.
Financial Context
The restructuring comes against a backdrop of significant financial challenges:
- In 2022-23, there were pre-tax losses of £81 million.
- There was an improvement from the £131 million losses in the previous year.
- The state continues to rely on millions in subsidies.
- Increasing competition in parcel delivery services
Leadership Changes and New Direction
Nigel Railton, the Post Office’s new interim chairman, is spearheading this transformation after the controversial departure of his predecessor, Henry Staunton, in January 2024. The organization is also preparing for a leadership transition as CEO Nick Read announced his upcoming departure in March 2024 after a five-year tenure.
Union Response and Controversy
The Communication Workers Union (CWU) has strongly opposed these changes. Dave Ward, the union’s general secretary, called the timing “immoral” and “tone deaf,” particularly given the ongoing Horizon IT scandal inquiry. The union has demanded an immediate halt to the planned closures.
Government Involvement and Future Plans
The Business Secretary, Jonathan Reynolds, has acknowledged the need for significant changes, highlighting that:
- Subpostmasters require better compensation.
- The central organization needs downsizing.
- Post Office branches could help fill gaps left by bank closures.
- The government is exploring potential ownership transfers to sub-postmasters.
A new deal for the Post Office
The Post Office has promised to announce a “new deal”.
- Increase postmasters’ share of revenues
- Strengthen the branch network.
- Improve operations for local communities
- Better serve independent postmasters and partners
Looking Ahead
This restructuring represents more than just branch closures; it signals a fundamental shift in how the Post Office operates in modern Britain. While the organization seeks to adapt to changing consumer needs and digital transformation, it must balance this against its historic role as a crucial community service provider.
The success of these changes will largely depend on:
- We are seeking suitable franchise partners for the affected branches.
- Managing the transition without disrupting essential services is crucial.
- Rebuilding trust has been damaged by the Horizon scandal.
- Developing new revenue streams is crucial to ensure long-term sustainability.
As this story continues to develop, communities across the UK will be watching closely to see how these changes affect their access to vital postal and banking services.