Ritika Janiya
The Post Office recently revealed plans to close 115 of its branches, a decision that could impact about 2,000 jobs across the UK. Unions and workers have responded with strong criticism, labeling the decision as “immoral” and “tone deaf,” especially as it comes shortly after the fallout from the Horizon IT scandal.
The Horizon scandal, which led to wrongful convictions of several postmasters due to errors in the IT system, is still under public investigation. Many feel the Post Office’s decision to downsize so soon after the scandal shows a lack of empathy for affected employees. This recent announcement has raised fears among Post Office workers and their families, especially as the holidays approach.
Why Is the Post Office Closing Branches?
The Post Office currently operates several types of branches. While some are directly owned, known as “crown” branches, others are managed by partner companies, such as Tesco, WH Smith, and Morrisons. These partners operate around 2,000 branches, while approximately 9,000 are independently run under contracts with the Post Office. The plan to close 115 crown branches is part of the Post Office’s long-term strategy to transition to a fully franchised model. This means independent business owners will run most branches, instead of the Post Office itself.
Nigel Railton, the chair of the Post Office, stated that closing these branches is necessary for the organisation’s future. According to Railton, directly managed branches are not making enough profit, and the change to a franchise model will allow the Post Office to focus on supporting branch operators rather than bearing operational costs. By doing this, the Post Office aims to maintain its 11,500 branches across the UK while reducing financial losses.
Concerns About Job Losses and Community Impact
The announcement has sparked significant concern among workers, union members, and communities. Dave Ward, General Secretary of the Communications Workers Union (CWU), voiced strong opposition, calling the decision “immoral.” Many CWU members were directly affected by the Horizon scandal, and now, these same employees fear for their jobs. Ward condemned the timing of the closures, especially as they come just before the holiday season, describing it as “another cruel attack.”
Union leaders also argue that closing branches will disproportionately impact vulnerable community members, including the elderly, who rely on local post offices for essential services. Many are now urging the government and Labour party to take action to protect these services. They are concerned that without local branches, people may face increased challenges in accessing postal and financial services.
Future Plans and Support for Branch Owners
Despite the job cuts and closures, the Post Office has outlined plans to improve financial support for branch owners. The Post Office aims to increase the share of revenue that branch operators receive by 30% in the first year, adding up to £120 million in extra income. By 2030, they hope to increase operator earnings by £250 million each year. This initiative, however, depends on funding from the government, as the government owns the Post Office.
Railton emphasized that the changes are intended to secure the Post Office’s future while learning from past mistakes. “The Post Office has a 360-year history of public service, and we are committed to ensuring it has a positive future,” he said. According to Railton, this new direction aims to bring pride back to working with the Post Office, moving away from a past shadowed by scandal.
Additionally, the Post Office plans to create a “postmaster panel,” which will include branch owner-operators. This group will give feedback and suggestions on how the Post Office can better support its postmasters, helping to improve training and address the needs of branch operators.
Government’s Role in the Post Office’s Future
The government has responded to the announcement, acknowledging the essential role of post offices in local communities. A spokesperson from the Department for Business and Trade said the government is actively discussing the plan with Railton and is exploring ways to secure funding for branch operators.
Business Secretary Jonathan Reynolds expressed his commitment to the long-term future of the Post Office, recognizing its significance as a public institution. Reynolds said that despite the Horizon scandal, the Post Office remains highly valued, both as a brand and as a service. He also suggested that changing the structure of the Post Office could be beneficial and hinted at the possibility of turning it into a mutual organisation, where branch operators would have greater control.
Public Reaction and the Impact of the Horizon Scandal
The Post Office’s decision to close branches and cut jobs comes at a sensitive time, as the Horizon scandal is still fresh in public memory. The Horizon IT system, introduced in the late 1990s, led to the wrongful accusations of hundreds of postmasters. They were falsely blamed for financial shortfalls that were actually caused by the faulty system. For years, many postmasters suffered job losses, financial ruin, and even jail time due to the errors, making the scandal one of the largest miscarriages of justice in UK history.
The inquiry into Horizon is ongoing, and many believe the Post Office should prioritize repairing its reputation with the public. Critics argue that closing branches and reducing job opportunities does not align with that goal. Instead, they feel the organisation should focus on rebuilding trust and offering stable jobs, especially for those who were wrongly affected by the Horizon scandal.
Looking Ahead
The Post Office’s transition to a franchised model marks a significant change for both employees and the communities it serves. While the organisation hopes this move will make its network sustainable and profitable, the immediate impact on jobs and community access is concerning to many. With the government still in talks about funding and the public inquiry into the Horizon scandal ongoing, the future of the Post Office and its workforce remains uncertain.
