Leigh Post Office at risk of closure as company announces plans

The Post Office confirmed on Wednesday, November 13 it could close 115 branches, within its 11,500 network across the UK, putting thousands of jobs at risk.

Chairman Nigel Railton made the announcement saying the decision came as the group looks to boost postmaster pay by £250 million over five years.

This could see these branches transferred to retail partners or postmasters, or potentially closed.

Leigh’s Post Office branch, on Silk Street, is one of the 115 branches that are at risk of closure.

What the Post Office has said

A Post Office spokesman said: “We are considering a range of options to reduce our central costs.

“This includes considering the future of our remaining directly managed branches (DMBs), which are loss-making.

“We have had long held a publicly-stated ambition to move to a fully franchised network and we are in dialogue with the unions about future options for the DMBs.”

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Post Office chairman Nigel Railton said the shake-up will also offer a “new deal for postmasters” by increasing their share of revenue and giving them a greater say in the running of the business as it looks to move on from the Horizon IT scandal that saw hundreds of subpostmasters wrongfully convicted.

The plans, which are subject to government funding, would see average branch pay doubled by 2030, with £120 million in additional pay by the end of the first year.

Mr Railton made the announcement at the company’s headquarters in London on Wednesday in a speech to postmasters across the country, as well as retail partners and Post Office staff.

The Post Office has announced it is offloading 115 branches (Image: Stock)

He said: “The Post Office has a 360-year history of public service and today we want to secure that service for the future by learning from past mistakes and moving forward for the benefit of all postmasters.

“We can, and will, restore pride in working for a business with a legacy of service, rather than one of scandal.”

He added the overhaul also “begins a new phase of partnership during which we will strengthen the postmaster voice in the day-to-day running and operations of the business, so they are represented from the frontline to the boardroom”.

It follows a strategic review launched by Mr Railton in May, but is reliant on funding talks with government, which the Post Office said were “positive and ongoing”.

The Government is also said to have been consulted on the possibility of handing ownership of the network to thousands of subpostmasters across the country.

The 115 branches put at risk are Crown Post Offices located in town and city centres and staffed by Post Office employees.

They are the only remaining branches directly owned by the Post Office, down from close to 400 in 2010.

CWU brands plans as 'tone deaf'

The Communication Workers Union (CWU) union called on the Post Office to halt the plans and for the Government to intervene.

CWU general secretary Dave Ward said: “For the company to announce the closure of hundreds of Post Offices hot on the heels of the Horizon scandal is as tone deaf as it is immoral.

“CWU members are victims of the Horizon scandal – and for them to now fear for their jobs ahead of Christmas is yet another cruel attack.”

But the Post Office insisted that aims are to franchise the branches or transfer ownership to other parties, such as its network of retail partners.