Politicians and councillors are campaigning for post office services to be retained as Post Office Ltd announced the potential closure of its 115 branches to make it more financially sustainable.
The state-owned company says these directly owned branches currently employ about 1,000 workers and are making a loss.
The other 11,000 post offices across the country are franchises.
Railton says it will deliver a new deal for postmasters that “significantly increases their total annual income through revenue sharing and strengthens their role in the direction of the organisation”.
But Torridge and Tavistock Conservative MP Sir Geoffrey Cox is seeking assurances that the full range of services on offer at Bideford Post Office will not deteriorate and the Liberal Democrats have set up a petition to save the branch.
Torridge District Councillor for Bideford NorthTeresa Tinsley (Lib Dem) said any threat to the post office in Bideford was “a kick in the teeth for regeneration”.
“The Post Office has been filling a vital gap left by bank closures, it provides vital services to the community and drives footfall in the town centre,” she said. “We need to safeguard the full range of services at the heart of our community.’
Cllr Teresa Tinsley Outside Bideford Post OfficePhoto: Torridge And Tavistock Liberal Democrats
Sir Geoffrey said: “There is no doubt that the Post Office has long pursued the strategy of replacing its directly managed offices with franchised operations.
“The Crown Post Office in Tavistock was replaced some years ago by a franchise, which operates a very wide range of services for the town.”
A move to franchisees would result an additional £250 million extra revenue to sub postmasters, claims the Post Office, but the MP added:
“The quality of a franchise will often depend on finding a suitable partner, and the investment that partner makes in it, and I have sought assurances that the Crown Post Office will remain open for the foreseeable future or at least there will be no deterioration of services in Bideford.”
He said he would be monitoring the situation “very closely”
‘Move rather than closure’
Brigg and Immingham’s Conservative MP Martin Vickers has urged the Post Office to consider a move rather than closure of its central Grimsby postal branch. A government minister said it would be “completely unacceptable” for no Post Office counter services in the town’s commercial centre.
During a debate on the future of the Post Office, Vickers directly raised the Grimsby branch’s possible closure, and suggested it should move to smaller premises, rather than resort to closing it altogether.
“The Minister rightly says that Crown post offices are more costly. I can assure him that the one in Grimsby, for example, could easily operate in much smaller premises or in premises shared with other businesses in the commercial centre of the town. Will the Minister give an assurance that he will ensure the Post Office looks at operating out of alternative premises, and cuts its costs before considering closures?”
Martin VickersPhoto: UK Parliament
The Liberal Democrat MP Tim Farron told parliament he was ‘deeply alarmed’ that Kendal Post Office on Stricklandgate appears on the list and added three years ago the previous government and Post Office administration threatened the branch with closure.
Mr Farron said: “We won our campaign to save it, in part because Post Office Ltd could see there was not space at WH Smiths in Kendal to take the Post Office, that has not changed. And likewise, that Royal Mail might lose their sorting office as a consequence of a closure, that has not changed either.
“What has changed is that two more high street banks, Halifax and Lloyds, have deserted Kendal Town Centre on the basis they claim that we’ve got the Post Office down the road, and they will be able to take up the slack.
“Isn’t this the time to give guarantees to Post Office’s like Kendal that they will remain a Crown Office for the foreseeable future to support our town and our economy.”
More than 2,000 people have signed a petition launched by Farron, who represents Westmorland and Lonsdale, to protect Kendal Post Office against its potential closure.
Great Grimsby and Cleethorpes’ Labour MP Melanie Onn has called for a rethink of the potential closure of the Victoria Street South branch, and has launched a petition calling for the branch to be taken off the Post Office’s ‘at risk’ register.
Melanie OnnPhoto: UK Parliament
Ms Onn said she is “deeply saddened” to hear the branch is at risk of closure, and called it “a lifeline for so many residents”.
“Like many in our community, I’m deeply saddened to hear that the Post Office in Grimsby town centre is at risk of closure as part of the Post Office’s strategic review,” said Ms Onn, announcing her petition to save the Grimsby town centre branch. “This branch is a lifeline for so many residents, and it’s one of the few places left that operates as a larger scale, traditional Post Office.
“We mustn’t forget how much more the Post Office provides beyond delivering and collecting mail. It’s a place where people can bank, get passport forms, and sort out things like travel insurance. For those who aren’t comfortable using the internet, these in-person services are absolutely vital, and we need to make sure they remain available for everyone.”
In response, business minister Gareth Thomas said: “We have made it clear to the Post Office that it has to talk to sub-postmasters, stakeholders and the trade unions about the costs associated with directly managed branches. We are committed to the requirement to ensure there is easy access to a post office branch for every community, up and down the country.”
He added the government encouraged the Post Office to continue to talk to the sub-postmasters who run branches in communities. “It’s completely unacceptable that the commercial centre of the town should not have access to Post Office counter services. Shared or smaller premises must be fully explored before a decision is taken.”
The Post Office needs an annual government subsidy to be viable, and reported pre-tax losses of over £80m in 2022/23. The Communication Workers Union (CWU) is also opposing the possible closures.
London to lose 32 branches
Up to 32 Post Office branches across London could close as part of a national shake-up aimed at restructuring the business. The city is home to around 28 per cent of the 115 earmarked branches across the UK.
One of the branches listed is the Post Office branch in Cricklewood Broadway, which has prompted a campaign by councillors across three boroughs to advocate for its continued operation. Local representatives in Brent, Barnet, and Camden have written to the company urging it to reconsider and formally oppose the decision.
Signed by six councillors representing the tri-borough area, the letter states: “The Cricklewood Post Office performs a crucial role for the residents in our communities. It is a much-used community hub, which often has long queues and offers a variety of face-to-face services on which residents depend. This is particularly the case for elderly, disabled and vulnerable residents, or those lacking the skills or devices to access services at home.”
It adds: “The Post Office also benefits the local community by promoting footfall along Cricklewood Broadway, at a time when the vitality of many local high streets is at risk. Closing this community asset would not only inconvenience hundreds of Cricklewood residents, but could also have detrimental effects on the local economy.”
Cricklewood Broadway Post OfficePhoto: Google Maps via LDRS
The current Mayor of Brent and councillor for Cricklewood and Mapesbury, Tariq Dar, took to social media to raise more public awareness that the Cricklewood Broadway branch is ‘at risk’. He said the news had ‘spurred strong and immediate opposition’ amongst local representatives and residents.
Cllr Dar said: “Cricklewood Broadway. Meetings are already underway to discuss campaign strategies, including drafting letters to Post Office executives and organising a public awareness effort. This coordinated response emphasises the community’s reliance on the post office for essential services and underscores a commitment to keep it accessible.”
He added: “This proactive approach draws on past successes in defending the post office and reflects a unified stance against closures that could impact vulnerable groups and local businesses.”
Seeks meeting
Derry City and Strabane District Council will seek a meeting with Post Office management and Royal Mail representatives to discuss the proposed closure of Derry’s General Post Office (GPO).
At this month’s Business and Culture Committee, People Before Profit councillor Shaun Harkin proposed writing to the representatives about the closure, and to also to seek clarification on the continuing lateness of letter delivery throughout the district.
Councillor Harkin said the Post Office’s plans to “offload” 115 branches, including the main branches in Belfast and Derry, were “very concerning” and requested the meeting to discuss the closures’ impact on services and staff.
He added: “The union that represents Post Office workers have come out very, very strongly against this.”
“We should be with the union because I think that they have the right concerns: workers and communities and how it will impact them.”
DUP Alderman Julie Middleton said, “The reality is not all of our constituents do online banking and do things by going into the post office and dealing with their business there and then, not everyone has access to emails [or] the internet.
“Not everybody needs to travel for miles and miles because their local post office has been closed, especially our older and our vulnerable people, and we’re going to see that knock on effect if the GPO closes.”
Tim Farron outside Kendal Post OfficePhoto: Liberal Democrats
Local councillors and MPs in Barnet are opposing plans to close three local Post Office branches.
The Barnet, Golders Green and Cricklewood branches are among 115 under threat of closure following the chair of the Post Office’s five-year ‘transformation plan’ announcement last week.
In response, Labour councillors and Barnet MPs have joined forces to save the local branches under threat, with three separate petitions being signed by more than 3,000 people combined.
Supporting the campaign, council leader Barry Rawlings said: “Post offices are at the heart of our high streets and it is vital that we protect them. I am backing Barnet Labour’s campaign to keep the Golders Green and Barnet post offices open.”
Cricklewood Post Office, in Cricklewood Broadway, technically lies on the Brent side of the borough boundary, which runs through the high street.
Finchley and Golders Green MP Sarah Sackman said: “Post offices provide essential services for our community.
“This announcement is extremely concerning for people in Golders Green and Cricklewood, for residents and local businesses alike.
“I will continue to reach out to residents, activists and staff over the next few days to discuss how we can protect these much-needed services – and mitigate any potential impact on jobs.”
Chipping Barnet MP Dan Tomlinson said: “I am deeply concerned that Barnet Post Office has been earmarked for closure.
“Post offices are cornerstones in our local communities, providing vital services and creating jobs for residents.
“I encourage all constituents to make their voices heard and sign the petition launched in collaboration with our local councillors. Now and always, I will campaign to protect Chipping Barnet’s services.”
Childs Hill councillor Nigel Young, whose ward contains Golders Green Post Office, said: “Golders Green Post Office is a lynchpin of our high street. Closing it would be a blow to our local economy and community. Let’s fight together to keep it open and please sign the petition.”
‘Considering all options’
Politicians in North Wales have written to Neil Brocklehurst, the acting chief executive of the Post Office, saying that the potential closure of a Post Office branch could be the “final nail in the coffin” for Caernarfon.
Arfon MS Siân Gwenllian, Dwyfor Meirionnydd MP Liz Saville Roberts MP, North Wales regional MS Llŷr Huws Gruffydd and Caernarfon councillor Cai Larsen have written the joint letter.
They said: “The Post Office is duty-bound to offer a certain level of face-to-face services in order to comply with the accessibility needs of residents.
“Gwynedd as a county has a higher median age than Wales as a whole, and a lack of trust or access means that some of our more senior constituents remain digitally excluded. In addition, within Caernarfon town lies the Peblig ward, a ward that consistently ranks highest for deprivation in Gwynedd in the Welsh Index of Multiple Deprivation (WIMD).
“Digital poverty is a very real issue in our communities, which places even more emphasis on the need for in-person services.
“Furthermore the Caernarfon branch serves a wider, more rural area than the town itself and with a lack of a proper public transport infrastructure an acute problem in this area, expecting constituents to travel further afield to access services is unreasonable.
“Let us conclude by highlighting Caernarfon’s very unique linguistic needs, needs that aren’t necessarily always met by online services or services in nearby towns. As a predominantly Welsh-speaking community, receiving services through the medium of their first language is essential in sustaining people’s trust and loyalty to the Post Office.
“Caernarfon town centre, like town centres across the county has struggled immensely in recent years, a situation worsened by Covid-19 and the cost-of-living crisis. Removing services such as the one you provide could prove to be the final nail in the coffin.
“At a time when the Post Office should be working to restore trust and public confidence in its services, this proposal rides roughshod over the needs of customers and we urge you to re-think any plans to close your Caernarfon branch.”
A petition to save the branch has also been launched, and Ms Saville Roberts says she will write to business secretary Jonathan Reynolds about the issue.
A Post Office spokesperson 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 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.”
(Reporting by Alison Stephenson, Ivan Morris Poxton, Dan Hunt, Grant Williams, Andy Balfour, Grace Howarth and Dale Spridgeon of the Local Democracy Reporting Service)
Ecco+, another pre-Horizon IT system that was introduced to post masters between 1992 and 1999, was also likely to be faulty due to which hundreds of sub postmasters were prosecuted by the Post Office, a leading sub postmaster representative has said.
Speaking to Asian Trader today (22), Calum Greenhow – Chief Executive Officer at National Federation of Sub Postmasters (NFSP) stated that Ecco+ system that was introduced between 1992 and 1999 also created problems for sub post masters.
Greenhow said, "Apart from Capture that came in pre-Horizon time, there was another one called Ecco+ that was in operation between 1992 to 1999. Within that period, (I have learned just in the last few days) post office brought about 334 prosecutions over an eight-year period."
He added, "We have heard so much about Post Office carrying out prosecutions during the Horizon. The fact is, they carried out prosecutions prior to Horizon as well, to near enough the same number and to the same degree. So we're talking about a prosecution regime over a 32-year period, not a 25-year period. Their attitude against sub postmasters and their own staff has been prevalent for well over 30 years," he said.
The NFSP last month wrote to the minister in charge of the Post Office requesting a review of problems experienced by users of Ecco+. With Ecco+, there were fewer prosecutions based on the systems reporting shortfalls, but instead, some users “were either dismissed or forced to resign, leading to severe financial consequences”.
A Department for Business and Trade spokesperson said, “The possible issues relating to Ecco+ have been brought to our attention following the independent investigation into Capture. The Department is looking into the issue.”
Last month, on being asked by Computer Weekly for details on the Ecco+ systems, Post Office said, “We don’t have the information you’ve asked for about Ecco+ to hand, and so if you would like to pursue this, we would recommend you submit a freedom of information request given that the subject matter dates back some 30 years and that is the most appropriate route to conduct searches.”
Ecco+ is the second pre-Horizon system that has come under scanner. Earlier this year, an independent forensic analysis, commissioned by the government in May, reported that IT system Capture had bugs and glitches and there was a reasonable likelihood it had caused cash shortfalls too.
According to latest reports, at least eight convictions predating the Horizon Post Office scandal are being looked at by Criminal Cases Review Commission (CCRC) investigating potential miscarriages of justice after being affected by Capture software.
Lord Beamish, the former Labour MP Kevan Jones, has been supporting victims and is calling for the government to extend current legislation to automatically quash convictions.
"The government are going to have to take this seriously," he said. "We can't have a situation where we have a two-tier system where people get exonerated from Horizon and the Capture cases are either forgotten or have to go through a very lengthy legal process to get their names cleared."
The Metropolitan Police has identified two new suspects in its investigation into possible criminal offences as part of the Post Office Horizon scandal. This takes the total number of individuals to four as the force also revealed it believes more suspects will be identified as the inquiry progresses.
Scotland Yard said members of the investigation team met with Sir Alan Bates, the leading Post Office campaigner, and fellow victims to update them on the development.
A Met spokesman said: “On Sunday Nov 17, members of the investigating team met with Sir Alan Bates and a number of affected sub-postmasters to provide an update on our progress and next steps, following an invitation to do so.
“Our investigation team, comprising of officers from forces across the UK, is now in place and we will be sharing further details in due course. The team is preparing to contact other affected sub-postmasters soon. While four suspects have been formally identified at this stage, this number will grow as the investigation progresses.”
However, Sir Mark Rowley, the Met Commissioner, has warned it could be years before anyone faces charges because of the “tens of millions of documents” that must be worked through.
Speaking previously on the matter, he said, “I think at the core of this you’ve potentially got fraud, in terms of false documents, if it’s for financial purposes.
“Clearly, we have to prove beyond all reasonable doubt, so really it’s 99.9 per cent, that individuals knowingly corrupted something. So that’s going way beyond incompetence, you have to prove deliberate malice, and that has to be done very thoroughly with an exhaustive investigation.
“So it won’t be quick. But the police service across the country are alive to this and we will do everything we can do to bring people to justice if criminal offences can be proven.”
More than 900 sub-postmasters were wrongfully prosecuted between 1999 and 2015 as a result of the Horizon scandal, in which the faulty computer software incorrectly recorded shortfalls on their accounts. Of these, hundreds of people are still awaiting compensation despite the previous government announcing that those who had convictions quashed were eligible for payouts of £600,000.
Oral evidence at the Post Office inquiry concluded this month.
Sir Tony Blair failed to put a brake on the Horizon rollout although the former prime minister had been warned the Post Office IT software was flawed, the inquiry heard on Wednesday (13).
In a witness statement, Lord Mandelson, who served as business secretary in Sir Tony’s cabinet, said the “integrity of the new system itself” was not “called into question” ahead of the 1999 rollout of the software. The Labour peer’s account comes 10 months after the public inquiry into the scandal was shown a note drafted by Geoff Mulgan, special adviser at Downing Street, and sent to the then prime minister in December 1988, which described the system as “increasingly flawed”.
Sir Tony jotted a handwritten note on the document itself, asking for a “clear view” on its reliability.
On Wednesday, the final hearing of the last phase of the Post Office inquiry took place and 80 additional witness statements were published – including Lord Mandelson’s. In his witness statement to the inquiry, the Labour peer wrote, “Concerning the integrity of the new system itself, this was not called into question.
“The external review’s findings were accepted both within my department and in No 10, albeit with some conditionality.”
He added: “The recommendation to confirm the Horizon system was made to the Prime Minister and the final decision was his. I do not remember No 10 putting a brake on the programme at any stage.”
By 1998 the Horizon project, which was launched under John Major’s government, had been running more than two years behind schedule. As a result, the project was referred to Sir Tony to decide if it should continue. In his own witness statement submitted to the inquiry, the former prime minister said he was unable to recall some details of the period.
However, he wrote: “I have learnt that it is crucial to obtain advice from experts with deep experience in the field who can provide the necessary assurance. As I have explained, I sought and obtained assurances as to the reliability of the product being developed.
“It is now clear that the Horizon product was seriously flawed, leading to tragic and completely unacceptable consequences, and I have deep sympathy with those affected.”
More than 900 sub-postmasters were wrongfully prosecuted as a result of the Horizon scandal, which saw the faulty software incorrectly record shortfalls on their accounts.
Post Office has on Wednesday set out an ambitious five-year Transformation Plan to deliver a ‘New Deal for Postmasters’ that significantly increases their total annual income through revenue sharing and strengthens their role in the direction of the organisation.
The ‘New Deal for Postmasters’ follows a strategic review initiated by Nigel Railton, chair of Post Office Ltd, in May. The Transformation Plan sets out an ambition to deliver a quarter of a billion pounds boost to postmasters’ income by 2030.
These improvements to remuneration are subject to funding discussions with government which the company said are “positive and ongoing”.
Alongside this, the Post Office is establishing a new Postmaster Panel where serving postmasters will help the business to improve the support and training it provides to postmasters. A new Consultative Council will also be established to work with the Post Office on the delivery of the Transformation Plan, and to challenge and feedback to ensure postmasters’ interests remain front and centre.
“The value postmasters deliver in their communities must be reflected in their pockets, and this Transformation Plan provides a route to adding more than £250 million annually to total postmaster remuneration by 2030, subject to government funding,” Railton said in a speech delivered to postmasters and Post Office staff.
“It 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.”
In the speech, Railton outlined the commercial, operational, cultural, and reputational challenges that must be addressed to deliver change for postmasters and learn the lessons from the Horizon IT public Inquiry.
“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 said.
Railton stressed that that the Transformation Plan is a five-year journey encompassing a series of changes. These include:
Strengthening postmasters’ commercial offer to their customers, particularly in banking, and to work with the government, banks, LINK and Cash Access UK to accelerate the roll out of banking hubs.
Delivering a lower-risk, better-value new branch IT system for postmasters gradually.
A major investment in the automation of cash and mails services in-branch to reduce postmasters’ cost-to-serve in their branches and to give customers the experience that they have come to expect from modern retailers.
Creating a new operating model for the business in which a streamlined central organisation acts as a support function for postmasters, offering expert support in marketing, training, and technology to postmasters.
The Post Office added that it will continue to work through the details of the Transformation Plan with colleagues, postmasters, strategic partners and organisations that represent postmasters to refine the plan and implement the changes required to transform the business.
The Post Office’s branch network size consisting of 11,500 branches will not be impacted by the Transformation Plan and the Post Office said it remains committed to strengthening its branch network and making it work better for local communities, independent postmasters and partners who own and operate branches.
“This Transformation Plan is the first step in a five-year journey that will set up the Post Office for years to come,” Neil Brocklehurst, Post Office acting chief executive, said.
“There are many consumers who primarily shop online, but there also many who struggle to use online services or actively choose to shop on their local high street and who want to be served by a human being. Postmasters across the UK serve every generation and this plan not only improves their incomes but also the support that we provide to let them run their businesses and serve their communities.”
Elliot Jacobs, serving postmaster and a non-executive director on the Post Office Board, added: “The last few years have been challenging for many retailers and postmasters are no exception. We have faced cost pressures from rising energy prices, increased national minimum wage and national insurance contributions. It’s vital that the Post Office embarks on this major Transformation Plan so that we have a sustainable financial future, and one that benefits the thousands of postmasters who work tirelessly day-in, day-out to support the local people and businesses who rely on us for essential everyday services.”
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Britain's main opposition Conservative Party leader Kemi Badenoch, arrives to give evidence to the Post Office Horizon IT Inquiry in central London on November 11, 2024. (Photo by ADRIAN DENNIS/AFP via Getty Images)
The government let bureaucracy get in the way of redress for wronged sub postmasters, former business secretary Kemi Badenoch today (11) told the inquiry into the Post Office scandal.
The Tory leader said that during her time as business secretary, she and former postal affairs minister Kevin Hollinrake "wanted to get the money out there" but were constantly given reasons why they could not by officials.
During an appearance before the Horizon IT inquiry, Badenoch said, "We had briefings on the issue with officials, and it was quite clear to me that we were allowing bureaucracy to get in the way of redress too much of the time.
"Kevin (Hollinrake) and I wanted to get the money out there, and we were always given a reason why we couldn’t.
"I feel that there is often too much bureaucracy in the way of getting things done, because people are worried about the process. They are worried about: if things go wrong, they’ll be on the hook for that. So they carry out lots of checks and balances well beyond what I think is required in order to deliver the right outcome."
Questioned by counsel to the inquiry Jason Beer KC on who allowed bureaucracy to get in the way of redress, Badenoch replied: "Well, the government machine.
"I think I remember asking a question like- ‘Why can’t we just give them the money?"’
Badenoch, who was Business Secretary for 17 months, also told the inquiry that she was determined to speed up the whole process of compensation.
“What I was seeing, the way the Department [of Business and Trade] and the Post Office was going on we’d never get to the end of it. I had my own objective of making sure we did right by the sub-postmasters.”
Badenoch added that the Post Office would have “disappeared in its current form long ago” if it was a private organisation, adding that it is a “20th-century organisation that is struggling to evolve in a 21st-century world.”
Badenoch also stated that it was “extremely disappointing” that it took an ITV drama about the Post Office scandal to get the government to accelerate compensation for wrongly convicted postmasters.
“I was not expecting the documentary [Mr Bates vs the Post Office] in January, which helped speed things along. It suddenly turned it from a value-for-money question to a public perception question.”
The inquiry saw an exchange of letters between Badenoch and Chancellor Jeremy Hunt in August 2023 requesting the extension of interim payments for the Group Litigation Order (GLO) compensation. But he initially rejected the idea.
“If you look at it in the context of what’s happening in government," she told the inquiry. "There are a thousand things that are being asked, money requested for. After a while, it just becomes another line in a ledger."