Sunderland city centre Post Office under threat in major changes to network

The Fawcett Street branch is among more than 100 at risk under a sweeping overhaul as the business looks to boost postmaster pay by £250million over five years.

The Post Office revealed today, Wednesday, November 13, that it is looking to offload 115 directly-owned branches within its 11,500 network, which could see them transferred to retail partners or postmasters, or potentially closed.

Around 1,000 workers are employed across the branches, while the Post Office also confirmed that hundreds of further roles are under threat at its headquarters as it looks to streamline back office operations.

A spokesman 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 had 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.”

They confirmed that Sunderland city centre is a directly managed branch. Chester-le-Street’s Front Street branch is also among those under threat.

Post Office chairman Nigel Railton said the shake-up would offer a “new deal for postmasters” by increasing their share of revenue and giving them a greater say in the running of the business as it looks to move on from the Horizon IT scandal that saw hundreds of subpostmasters wrongfully convicted.

The plans, which are subject to government funding, would see average branch pay doubled by 2030, with £120 million in additional pay by the end of the first year.

Sunderland Bid’s Sharon Appleby said: “It’s obviously very concerning to hear that Sunderland Post Office is currently on the at risk list.

“However our understanding is that the Post Office is also looking at the options for franchising or possibly transferring ownership to other retail partnerships, so there could be a possible positive outcome.

“At this stage we can only monitor the situation closely and add our support for the retention of the Sunderland branch.”

MP Lewis Atkinson, whose Sunderland Central constituency covers the Post Office, added: “As part of the Post Office’s recent announcements, the future of 115 branches across the country are being reviewed, one of which is the Sunderland Post Office

“No definite decisions have yet been made about any branch.

“I will monitor the situation and work to ensure residents and businesses continue to have access to important local services.”