Post Office considering cost-saving options for 115 directly owned branches but no decision on Derry

This includes potentially moving to a fully franchised network.

A Post Office spokesperson told the ‘Journal’: “We are considering a range of options to reduce our central costs.

"This includes considering the future of our remaining Directly Managed Branches, 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.

"No announcement has been made about any branch.

"Londonderry is a DMB.”

The Post Office issued the statement after chair Nigel Railton said the organisation will have to have ‘an honest conversation’ about its network of 115 DMBs.

Mr. Railton did not elaborate on the potential outcome of this conversation as he announced what he described as a bold new, five-year strategy for Post Office that looks to deliver a ‘New Deal for Postmasters’.

“We will ensure our network is fit-for-purpose.

"We want to see a significant increase in the number of Banking Hubs – rising to 500 by 2030.

"We will deliver a more consistent experience for customers when they visit a Post Office branch.

"And, as part of our ambition to strengthen the network, we also need to have an honest conversation about the loss-making parts of our network and our Directly Managed Branches, while still meeting the current requirement for 11,500 branches,” Mr. Railton said on Wednesday.

In his speech delivered to postmasters and Post Office staff on Wednesday, Mr. Railton outlined the commercial, operational, cultural, and reputational challenges that he said must be addressed to deliver change for postmasters and learn the lessons from the Horizon IT public Inquiry.

Mr. Railton said: “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.

“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.”

The Post Office’s branch network size consisting of 11,500 branches will not be impacted by the Transformation Plan and the Post Office remains committed to strengthening its branch network and making it work better for local communities, independent postmasters and partners who own and operate branches, it stated.

Neil Brocklehurst, Post Office Acting Chief Executive Office (CEO), said: “This Transformation Plan is the first step in a five-year journey that will set up the Post Office for years to come.

"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.”