The Post Office has announced plans to close or transfer 115 of its Crown branches, potentially affecting around 1,000 jobs, as part of a broader transformation initiative.
The branches targeted by this announcement, including the St Aldate’s Post Office in Oxford, are owned directly by the Post Office, and most are located in city centres.
The Post Office has 11,500 branches across the UK, most of which are run as franchises by retail partners like WHSmith or independent postmasters, and these remain unaffected.
This move is part of a strategy to address financial losses and to double postmaster pay by 2030, with an additional £250 million proposed for postmaster remuneration over the next five years, pending government funding.
The restructuring aims to rebuild trust following the Horizon IT scandal and involves reducing central office staff.
Business Minister Gareth Thomas emphasised the need for cultural change within the Post Office to better serve postmasters and customers. The transformation plan is also designed to provide postmasters a greater voice in operations, from the frontline to the boardroom.
Business minister Gareth Thomas pointed out that nearly half of the Post Office’s branches are not profitable or make a small profit, highlighting the need for transformation in their operational model.
Post Office chair Nigel Railton emphasised the necessity of reflecting the value that postmasters provide to their communities in their compensation, indicating that the transformation plan aims to increase postmaster remuneration significantly.
The Post Office is considering a fully franchised network as part of its restructuring and is currently in dialogue with unions regarding the future of directly managed branches, which are primarily loss-making.
The transformation plan includes introducing a lower-risk IT system for postmasters to prevent issues like those seen in the Horizon IT scandal, which had previously led to wrongful prosecutions.
Responding to the closure of St Aldate’s Post Office, Councillor Susan Brown, Leader of Oxford City Council, said: “Oxford City Council strongly opposes the proposed closure of the St Aldate’s Post Office.
“This essential facility serves as a crucial resource for local residents and businesses alike, providing vital services that support the daily needs of Oxford’s community.
While we recognise the challenges facing Post Office Ltd, we urge them to reconsider the significant impact of this decision and work with us to explore viable alternatives.
“The Council is committed to advocating for accessible local services that strengthen Oxford’s communities and economy.”
