Post Office to franchise remaining 108 branches

The Post Office will franchise its remaining 108 directly managed branches by autumn 2025.

The move followed a board decision to transition to a fully franchised network as part of its commitment to deliver a ‘New Deal for Postmasters’.

The organisation said it would work with unions and consult with affected employees throughout the process.

It stated that staff would be treated “with care and respect” during the transition.

Branches will either remain in the same location or move nearby to maintain access to services.

Directly managed branches currently generate a fully allocated annual loss of over £40m.

Franchising these branches aims to help realise savings to fund an increase in Postmasters’ remuneration by up to 10%.

The organisation plans to raise Postmaster pay by an additional £250m a year by 2030, subject to Government funding.

Nigel Railton, chair at The Post Office, 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 £40m worth of savings that will enable us to uplift postmasters’ remuneration by up to 10%.”