In a major shift that could impact around 1,000 workers, the Post Office has announced its intention to franchise its remaining directly managed branches. The decision marks the final step in the organisation’s long-term transition towards a fully franchised business model.
The 108 “crown” branches—currently under the direct ownership and operation of the Post Office—are set to be transferred to franchise partners by the autumn. These branches may be taken over by large retail franchise businesses or independent postmasters, depending on local arrangements.
Although the Post Office has reassured the public that services will remain available either at or near the current locations, there is still concern for employees whose futures remain uncertain. The franchising process may result in some branches being relocated, which could lead to closures and job losses.
The Post Office commented that communities impacted by these changes “will continue to be able to access Post Office services either at, or near to, the same location”.
The organisation is understood to prefer retaining the current sites for ongoing operations, but the logistical realities of franchising mean some branches might shift to new premises, affecting staffing and continuity.
This restructuring move is part of a broader strategy to strengthen the Post Office’s financial position, particularly following the fallout from the Horizon IT scandal, which saw hundreds of subpostmasters wrongfully prosecuted over accounting errors.
The organisation, now focused on rebuilding trust and delivering fairer pay, has positioned the franchising effort as key to its “New Deal for Postmasters”. By reducing the operational costs of directly managing branches, the Post Office aims to channel savings into boosting postmaster remuneration.
Post Office chairman Nigel Railton emphasised the rationale behind the decision, stating: “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%.”
The Post Office added that, pending Government support, the plan could unlock an additional £250 million in funding to enhance pay for postmasters by 2030.
As the autumn deadline approaches, affected staff and communities await further details on how the transition will be implemented and whether their local branches will remain in place under new management or face closure.
