Post Office to move to fully franchised network

The Post Office has announced that it is moving to a fully franchised network as part of its commitment to deliver a ‘New Deal for Postmasters.’

Subject to Government funding, the last 108 directly managed branches which are operated by the Post Office will be franchised by the autumn.

The decision forms part of its five-year Transformation Plan to deliver a ‘New Deal for Postmasters’. While subject to Government funding to enable the Post Office to deliver its plan, Postmaster remuneration is expected to increase by an additional £250m a year by 2030.

The Post Office confirmed in November that the future of its directly managed branch network would be under review, with these branches generating a fully allocated loss (including central and support costs) of over £40m each year.

Post Office added that it will work with franchise partners with a clear track record of successfully running Post Office services or similar customer-focused retail to ensure communities in these 108 locations will continue to receive a high quality of service once their directly managed branch is franchised. Further details on proposals will be shared with local communities and stakeholders for individual branches in the coming weeks.

Commenting on the decision, Post Office chair, 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. By franchising these branches, we are protecting access to our services for communities right across the UK and realising £40 million worth of savings that will enable us to uplift postmasters’ remuneration by up to 10%.

“Over the coming months, we will continue to work with our unions to ensure that we treat our staff working in these 108 branches with care and respect through this transition, consulting with them on proposed changes. The 108 Post Offices will either stay in the same location where possible or be located close to the existing location, meaning customers will continue to have access to a full suite of products and services.”