Post Office to offload all directly-owned branches

The Post Office has said it will offload the remaining 108 branches it directly owns and will move to a fully franchised network.

About 1,000 staff working in these branches will be offered a choice to move to work for any new owner or take voluntary redundancy.

It is understood the Post Office has received interest from potential retail partners including Tesco and Ryman, as well as sub-postmasters, to take on the loss-making branches.

The Communication Workers Union (CWU) called for the government to intervene immediately and examine alternative options.

CWU general secretary Dave Ward said: "The Post Office's claim that these community services will be maintained by their failed franchising model is laughable to anyone who has seen their local Post Office services reduced to the back of a shop.

"The sell-off of WH Smith last week shows just how fragile and ill-thought out this model is. This is the full privatisation of the Post Office via the back door."

The Post Office confirmed last November that the future of the these sites would be under review as part of a five-year plan to overhaul the business.

A decision on who will take them over will be made in the coming weeks. The Post Office will stop running them by the autumn, subject to government funding.

Post Office chairman Nigel Railton said the 108 branches will either stay in the same location or be relocated nearby so customers continue to have access to the services.

He said moving to a fully franchised network was one part of enabling the Post Office to deliver a new deal for postmasters.

"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%," he said.

He said over the coming months the Post Office would continue to work with unions to consult with staff in the 108 branches and support them through the transition.

The Post Office said it would work with franchise partners with a clear track record of successfully running Post Office services or similar customer-focused retail to ensure customers continue to receive a high level of service once the branches are franchised.

The company said it remained committed to meeting the current requirement to have a minimum of 11,500 branches across the UK and to meet the six access criteria set by government.

Further details on proposals will be shared with local communities and stakeholders for individual branches in the coming weeks.