Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, whether UK Government Investments has made a request to Post Office Limited to (a) proceed with moving all directly managed branches to a fully franchised model and (b) expedite the shift of directly managed branches that have previously been earmarked to be moved to a fully franchised model since 5 July 2024.

Nigel Railton, the Post Office Chair, has set out his ambitions for the future of the Post Office, which involves a reduction in central costs and other ways to deliver efficiencies, plus steps to improve the commercial future of the business in order to enable real term increases in postmaster pay. No decisions have yet been taken on the future of any individual Directly Managed Branches (DMBs) as part of this plan. The Government will continue to work closely with Post Office as they develop their transformation plan. In the meantime, we expect the Post Office to fully engage and consult with the Unions and postmaster representative bodies about future options for the DMBs.

Decisions about franchising are an operational matter for Post Office Limited. The Government is broadly supportive of POL’s transformation plan, including the aim of increasing postmaster pay, however neither the Department nor UKGI, acting as the Shareholder representative on the Board of Post Office Limited, have made the requests referred to in the question.

The Post Office will continue to deliver on the 11,500 minimum branch requirement set by Government.