The Post Office has announced plans to hand over its remaining 108 directly-owned Crown branches to franchisees by this autumn. This strategic move is part of the company’s efforts to generate additional cash to support higher pay for postmasters. The change could see some branches taken over by other businesses, while others may face closure as franchises are moved to new premises.
Why the Change?
The decision to offload these branches aims to secure the long-term sustainability of the Post Office network. The organisation is aiming to increase postmaster remuneration by £250 million per year by 2030. This restructuring is expected to save £40 million, enabling the Post Office to increase postmasters’ pay by up to 10%.
Post Office chairman Nigel Railton said:
Moving to a fully franchised network is one part of enabling the Post Office to deliver a New Deal for Postmasters, helping to create a long-term, sustainable future for the Post Office.
Impact on Employees and Customers
The transition affects around 1,000 workers currently employed across the 108 affected branches. These are directly-owned Crown branches, which means they are run and operated by the Post Office rather than franchise partners. While some branches may continue to operate under new management, others may be relocated or closed.
This transition marks a significant change for the Post Office, which has been under pressure to modernize and improve profitability while maintaining essential public services across the UK.
