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)
Fulfilling a key request from those impacted by Post Office Horizon scandal, Department for Business and Trade today (3) announced that those who have had their convictions overturned will now have their conviction claims administered by the government, completely taking them out of the hands of the Post Office.
The Post Office will cease to be involved in the redress for postmasters with overturned convictions.
After a three-month transitional period, the Department for Business and Trade’s Horizon Convictions Redress Scheme (HCRS) will broaden its scope to take on responsibility for redress for postmasters who have had their convictions overturned by the Courts.
These are currently dealt with by the Post Office through their Overturned Convictions scheme. This is something that postmasters, campaigners, and Parliamentarians, including the Business and Trade Select Committee, have all called for.
Stating that the victims have "suffered a huge amount", the department stated that while the government can’t fully put right what they have been through, it can make sure the compensation process "works better for them by listening to their grievances and acting upon them where possible to ensure postmasters are treated with dignity and respect".
"Today, this means ending the difficulty of dealing with the organisation which upended so many of their lives," stated the department.
The delivery of redress for victims of the Post office Horizon scandal is a key government manifesto commitment, with a commitment of £1.8 billion to ensure all postmasters receive the justice and financial redress they deserve.
Post Office Minister Gareth Thomas said, "My priority upon coming into office was to speed up the delivery of compensation to the victims of the Horizon scandal.
"We have made significant progress, and we are now moving to ensure there is a quick transfer of schemes from the Post Office to the Department.
"In the meantime, I encourage all those eligible to apply for redress under the Overturned Convictions scheme and continue to progress their claims with the Post Office until the transfer date."
The Department for Business and Trade will formally take over on June 3 2025. The three-month transitional period between now and then will allow for the smooth transfer of active claims from one scheme to the other, ensuring there is no gap in service for postmasters who have claims in the system.
As of 31 January, approximately £663 million has been paid to over 4,300 claimants, which has more than doubled since the end of June 2024.
Today’s announcement is the latest in a series of government actions to address the Post Office Horizon Scandal, including:
launching the Horizon Convictions Redress Scheme (HCRS) for postmasters whose horizon-related convictions were quashed by Parliament. This scheme has made 364 interim payments to eligible claimants and has fully settled 208 claims, paying out a total of £156 million.
on the HCRS, committing to provide first offers on receipt of detailed claims within 40 working days in 90 per cent of cases.
beginning payments of a £75,000 fixed offer for those postmasters in the Horizon Shortfall Scheme (HSS) who want to accept it: approximately £171 million has been paid in award top-ups and £75,000 awards.
publishing our response to the consultant’s report into the Post Office Capture software (predecessor to Horizon) and have committed to offering redress to all non-convicted postmasters who fell victim to flaws in Capture software.
announcing an independent appeals process for the HSS to provide individuals with a chance to have their claims reassessed through a DBT-run process. We expect the first cases will be ready for submission in the Spring.
confirmed the Horizon Compensation Advisory Board in place.
Fujitsu, the maker of the software behind the wrong conviction of hundreds of sub post masters in Britain's biggest miscarriage of justice, has been asked to make an "interim payment of at least £300 million" to cover the compensation paid to Post Office Horizon scandal.
Labour peer Lord Beamish called on a debate in House of Lords on Thursday (27) on the progress of the Post Office Horizon compensation scheme and of the contribution of Fujitsu to the compensation of victims.
Stating that Fujitsu not only covered up the fact that Horizon system was full of bugs and could be remotely accessed but also took an active part in the prosecution of sub-postmasters, Lord Beamish slammed the Japanese firm for "hiding behind the public inquiry".
"At the public inquiry and the Commons Select Committee, Mr Patterson (Paul Patterson, the director of Fujitsu in the UK) said that he apologised to the sub-postmasters and that Fujitsu would make a contribution to compensate victims.
"As of today, no money has been paid by Fujitsu to victims and this is a company that is still making multimillion-pound profits from government contracts.
"It said that it was not going to bid for new contracts, but what it is doing is extending existing contracts. That is happening at the same time as the taxpayer is paying out nearly £600 million in compensation to victims, and many victims are still waiting for compensation."
Apart from calling on Fujitsu to cough out £300 million as interim payment, Lord Beamish also demanded that the Government should bar Fujitsu from taking part in any future contracts if major change has not taken place.
Conservative peer Lord Arbuthnot of Edrom supported the proposal, noting that while Fujitsu had acknowledged its "moral obligation," it was ultimately the taxpayer who was bearing the financial burden, amounting to hundreds of millions.
He said, "The noble Lord, Lord Beamish, suggested £300 million; £700 million would be less than half the cost that the taxpayer is currently estimated to bear.
"If it does not do that, why should the Government offer it further extensions of its existing contracts, still less grant it new contracts?"
Labour peer Baroness Elliott of Whitburn Bay also expressed her support for the proposal, asserting that it was time for Fujitsu to take responsibility and contribute to the compensation fund.She urged all parties involved to act as swiftly as possible to ensure that all victims of the scandal received the payments they rightfully deserved.Conservative peer Lord Polak emphasized the need for the Government to provide clear and transparent communication to claimants about the claims process, ensuring they understood what to expect and the timeframe involved. He agreed with Lord Beamish’s suggestion of a £300 million contribution from Fujitsu but argued that the company should match the amount already covered by the taxpayer, acknowledging that while it was a significant sum, it was a necessary obligation.
Parliament was told that if the Japanese tech giant was an individual it would be facing years if not decades in jail for its active part in the Horizon IT scandal which saw sub postmasters “maliciously prosecuted”.
The firm continued to enjoy lucrative extensions to government contracts bankrolled by the public while the taxpayer funded payouts to victims of what is believed to be Britain’s biggest miscarriage of justice, Westminster heard.
Hundreds of sub postmasters were wrongly convicted of stealing after Fujitsu’s defective Horizon accounting system made it appear as though money was missing at their branches.
The Post Office also forced at least 4,000 branch managers to pay back cash based on the flawed data. Some victims were sent to prison or financially ruined, others were shunned by their communities, and some took their own lives.
The number of convictions linked to Capture computing software, which was used in Post Office branches in the 1990s before the infamous faulty Horizon system was introduced, has more than doubled in a span of less than three months, revealed a recent report.
21 Capture cases have now been submitted to the Criminal Cases Review Commission (CCRC) for review against eight that were reported in December, according to a recent report by Sky News.
Quite similar on the lines of Horizon Post Office scandal where sub post masters were wrongly convicted due to shortfall, Capture accounting system, used from the early 1990s until 1999, was also responsible for shortfalls which led to several wrongful convictions.
Last year in December, Post Office was asked to urgently review its files and evidence related to Capture so the Criminal Cases Review Commission (CCRC) and the Scottish Criminal Cases Review Commission (SCCRC) can ensure no one was wrongfully convicted of a Horizon-style injustice.
Responding to the independent Kroll report into the software, the business secretary has promised to provide redress for postmasters who suffered losses as a result of Capture.
The government said it will work swiftly with victims to determine its form and scope, alongside eligibility criteria, by Spring 2025.
The government commissioned the independent report following postmasters coming forward publicly in January indicating they had faced detriment due to the Capture system. In its report, Kroll concluded Capture could have created shortfalls.
If the CCRC finds significant new evidence or legal arguments not previously heard before, cases can be referred back to the Court of Appeal.
Apart from Horizon and Capture, a leading postmasters body accuses Ecco+, another pre-Horizon IT system that was introduced to post masters between 1992 and 1999, as likely to faulty due to which hundreds of sub postmasters were prosecuted by the Post Office.
Speaking with Asian Trader last year, 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.
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A general view of the Warrington offices of technology company Fujitsu in Warrington, England
Post Office Horizon scandal victims have slammed Post Office for paying "£40 million" to extend its contract with Fujitsu to continue using the controversial Horizon IT software, as revealed in a recent report.
At least 900 subpostmasters and subpostmistresses were wrongly prosecuted for apparent financial shortfalls caused by faults in the accounting software, in what has been described as one of the UK’s biggest miscarriages of justice.
Despite that, data revealed by inews shows the Post Office has renewed its contract with Fujitsu to continue using Horizon until March 2026 at a cost of £40.8m.
The Post Office previously said it planned to replace Horizon with “new branch technology” but would maintain the old IT software until the new technology is developed.
Christopher Head OBE, a former sub postmaster, was sued by the Post Office in the civil courts for more than £80,000 that was supposedly missing from his branch. He has not yet been compensated.
Responding to Fujitsu’s new contract, he added, “We understand that in order to transition to a new system you have to maintain the old one until you get to the point that you are satisfied.
"In this circumstance, with the Post Office, you’d be more cautious given what’s happened with the previous system.”
Janet Skinner, aformer subpostmistress from Hull, was handed a nine-month sentence for theft in 2007 after £59,000 appeared to be missing from her Post Office branch.
She served three months of that sentence before being released with an electronic tag but was hospitalised in 2008 with a stress-related illness.
Commenting on the extension of Fujitsu’s contract, Skinner told inews, “It’s an insult. It’s like they are rewarding them for their bad behaviour.
“There needs to be accountability and accountability is not awarding contracts to a company that has been at the forefront of this scandal.
“It just infuriates me. Absolutely infuriates me. God knows what the other postmasters are feeling. It’s just like being kicked in the teeth.”
A spokesperson for the Post Office said that, while it is too early to speculate about when Horizon will be replaced, it is “committed to delivering a lower-risk, better-value new branch IT for postmasters”.
A Fujitsu spokesperson said, “We are focused on supporting the Post Office in their plans for a new service delivery model, so branches can continue to deliver key services to the public.”
Approximately £663 million has been paid to over 4,300 claimants across four schemes for the victims of Post Office Horizon scandal. This is up from £594 million figure reported last month.
Sharing the latest report, Department for Business and Trade (DBT) stated on Friday (7) that £315 million has been paid under Horizon Shortfall Scheme (HSS), including interim payments while £128 m has been paid under Group Litigation Order (GLO) Scheme.
£65 million has been paid under Overturned Convictions (OC) and £156 million has been paid under Horizon Convictions Redress Scheme (HCRS).
Initial interim payments are available to eligible postmasters upon getting their conviction overturned on the grounds that it was reliant on Horizon evidence, states the department.
As of 31 October 2024, all 111 eligible claimants have either reached full and final settlement or received a minimum of £200,000 through interim payments.
From these 111, Post Office Ltd has received 82 full and final claims.
Of these 82 claims, 66 have been paid and a further 7 have received offers. The remaining 9 are awaiting offers from Post Office Ltd.
"Post Office Ltd has been progressing non-pecuniary settlements first to get money to postmasters as quickly as possible, which means a number of partial settlements have been reached in addition to the full and final settlements published here. Post Office Ltd continues to work on finalising these outstanding claims," states the department.
Under GLO scheme, the department had received 408 completed claims from eligible GLO postmasters. 252 have been paid and a further five have accepted offers and are awaiting payment. Another 126 postmasters have received offers from DBT and the remaining 24 are awaiting offers.
In HSS, £315 million has been paid including £33.3 million in interim payments to original claimants and £7.9 million in interim payments to late applications.
DBT informs, "On 13 March 2024, the government announced that all eligible HSS claimants would be entitled to a fixed sum award of £75,000 to settle their claim.
Post Office Ltd continues to make top-up payments to claimants who had previously accepted a full and final offer below the value of £75,000, to bring their total redress to £75,000."
The Post Office Horizon scandal saw more than 900 sub postmasters being prosecuted between 1999 and 2015 after faulty Horizon accounting software made it appear that money was missing from their accounts.
Hundreds are still awaiting compensation despite the previous Conservative government announcing that those who have had convictions quashed are eligible for £600,000 payouts.