Home Business Post Office faces backlash over potential closure of 115 branches as jobs and services are at risk

Post Office faces backlash over potential closure of 115 branches as jobs and services are at risk

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The Post Office handled a record £3.7bn in cash in July as UK bank branch closures continue to rise. Explore how this shift is impacting consumers and small businesses who rely on cash transactions.

The Post Office has announced the possible closure of 115 Crown Post Office branches, putting up to 1,000 jobs at risk as a result of significant restructuring aimed at limiting losses.

The proposed changes could see franchise agreements involving third-party operators, such as WHSmith, taking over the affected sites. However, this uproar has drawn sharp criticism from unions and community advocates.

The Communication Workers Union (CWU) condemned the timing as the move coincides with the ongoing investigation into the Horizon IT scandal, labeling it ‘immoral’ and ‘tone deaf’. The Horizon scandal, in which hundreds of sub-postmasters were wrongfully prosecuted due to faulty software, is still fresh in public memory and many are calling for transparency and justice.

Under new chairman Nigel Railton, the Post Office wants to put the organization on a more sustainable financial footing amid challenges such as competition from parcel carriers and declining letter revenues. Losses amounted to £81 million in the 2022-2023 financial year, with almost half of sites operating at minimal or negative profitability.

Railton highlighted the need for a ‘fresh start’, with plans to invest £250 million annually in the network by 2030, subject to government support. This includes an improved banking offering and a modern “lower risk” IT system that addresses long-standing technology issues. Railton described the process as “right-sizing” the organization to better meet future demands.

Growing community dependence on the post office

As bank branch closures escalate across the UK, post offices have become essential for cash and banking services in local communities. If the closures continue, they will disproportionately impact rural and urban communities where alternatives are limited. In July alone, more than £3.7 billion was withdrawn or deposited at post offices, highlighting their crucial role.

Community advocates, such as Martin Quinn of *Campaign for Cash*, argue that the government should treat the post office network as essential infrastructure. “This is yet another nail in the coffin for communities that rely on the post office for access to cash,” he warned, urging the government to halt the closures.

The government has held “positive” discussions with Railton, with business minister Jonathan Reynolds suggesting post offices could step in to fill the gaps left by bank closures. However, with the rapid rise of digital banking, the feasibility of a high street-based strategy remains uncertain.

In addition, ministers are considering transferring ownership of the post office to sub-postmasters to protect local services. A government spokesperson said: “We are in active discussions with Nigel Railton to strengthen the network for a sustainable future.”

Impact on employment and local services

The proposed closure list includes sites across the UK, from major city centers to rural areas, affecting cities such as Glasgow, Oxford, London Bridge and Stornoway. The Post Office has stressed that it has no plans to reduce its overall network of more than 8,500 independently run branches. However, CWU officials claim the move risks further alienating communities that rely on the post office network.

Here is a full list of the branches affected by the Post Office closure plans:

Antrim
Bangor
Belfast city
Edinburgh city
Glasgow
Haddington
Inverness
Kirkwall
Londonderry
Newtownards
Salt coats
Springburn Road
Stornoway
West Hailes
Barnes Green
Bransholme
Bridlington
Chester Le Street
Cross gates
Eccles
Furness House
Grimsby
Hyde
Kendal
Manchester
Meercambe
Morley
Poulton le Fylde
Prestwich
Rotherham
Salford City
Sheffield city
Southern Shields
St. John
Sunderland city
The markets
Birmingham
Breckweg
Caernarfon
The village of Didsbury
Harlesden
Kettering
Koningsbury
Leigh
Leighton Buzzard
Matlock
Milton Keynes
Noordolt
Old Swan
Oswestry
Oxford
Redditch
Zuidall
Sint-Pietersstraat
Stamford
Stockport
Wealdstone
Barnet
Cambridge city
Canning city
Crackling wood
Dereham
Gouders Groen
Hampstead
Harold Hill
Kilburn
Kingsland Main Street
Lower Edmonton
Roman road
South Ockendon
Stamford Hill
Bideford
Dunraven place
Gloucester
Liskeard
Merthyr Tydfil
Mutley
Nagelzee
Newquay
Paignton
Port Talbot
Stroud
Teignmouth
Yate Sodbury
Bakkerstraat
Bexhill at sea
Cosham
Great Portland Street
Croydon high street (10)
Kensington
Knights Bridge
Melville Road
Paddington Quay
Portsmouth
Raynes Park
Romsey
Westbourne
Windsor
Worlds end
Aldwych
Brixton
Broadway
City of London
Clapham Common
East Dulwich
Eccleston Street
High Holborn
Houndsditch
Islington
Kennington Park
London bridge
Lupus Street
Mount Pleasant
Vauxhall Bridge Road


Jamie Young

Jamie is a seasoned business journalist and Senior Reporter at Business Matters, with over a decade of experience in UK SME business reporting. Jamie has a degree in business administration and regularly attends industry conferences and workshops to stay at the forefront of emerging trends. When Jamie isn’t reporting on the latest business developments, he is passionate about mentoring emerging journalists and entrepreneurs, sharing their wealth of knowledge to inspire the next generation of business leaders.

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