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Ministers consider transferring Post Office to subpostmasters

Ministers consider transferring Post Office to subpostmasters

The UK government is considering turning the scandal-ridden Post Office into a cooperative, with subpostmasters taking control. Management consultants are exploring the possibility of transforming the 364-year-old institution into an employee-owned mutual, similar to John Lewis Partnership.

The move comes in response to public outrage over the wrongful convictions of subpostmasters accused of theft, sparking calls for a review of the Post Office. However, doubts remain about the viability of the plan, with concerns about government subsidies and the financial burden on subpostmasters.

The Post Office, which lost £76m last year, faces liabilities of £799m, with potential costs of £1.1bn to replace the Horizon IT system central to the scandal. Previous attempts at similar plans have failed due to various challenges.

Despite the uncertainties, supporters believe that mutualisation holds potential, with most post offices operating as franchisees. A review by consulting firm Teneo is expected to recommend reducing staff from 3,500 to 1,000. Time will tell if this ambitious plan for the Post Office will succeed in revitalizing the historic institution.

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