The Put up Workplace is drawing up plans to shut dozens of branches and axe a whole lot of head workplace jobs because it tries to position its funds on a sustainable long-term footing.
The affected branches collectively make use of near 1,000 folks and are mentioned to be considerably loss-making.
A big variety of jobs – believed to be in extra of 1,000 – are additionally understood to be in danger on the Put up Workplace’s headquarters. Additional particulars of the place the axe would fall have been unclear on Tuesday afternoon.
Whitehall insiders mentioned that the federal government had been consulted on the plans, which come as ministers discover the potential for handing possession of the community to 1000’s of sub-postmasters throughout Britain.
They added that union officers had additionally been briefed on the proposals, with one suggesting that an announcement might come as early as Wednesday or Thursday.
The associated fee-cutting measures are mentioned to be designed to assist the Put up Workplace stem substantial monetary losses, with the corporate requiring an annual authorities subsidy to remain afloat.
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Ministers to mutualise Put up Workplace
One authorities supply mentioned the plans must be seen within the context of feedback made by Jonathan Reynolds, the enterprise secretary, on Monday on the public inquiry into the Horizon IT scandal.
Giving proof, Mr Reynolds mentioned: “I feel regardless of the size of this scandal, the Put up Workplace continues to be an extremely essential establishment in nationwide life.
“I look at the business model of the Post Office, and I think even accounting for the changes in the core services that are provided … there’s still a whole range of services that are really important.
“However I do not assume postmasters make ample remuneration from what the general public need from the Put up Workplace, and I feel that is going to require some very important adjustments to the general enterprise mannequin of the Put up Workplace.”
Enhancements to the pay and dealing practices of sub-postmasters are anticipated to be introduced imminently, the federal government supply added.
The 364 year-old establishment has been engulfed in disaster because the scale of the Horizon scandal grew to become clear, with a whole lot of sub-postmasters wrongly prosecuted for theft and fraud offences.
Delivered to a wider public viewers by the ITV drama ‘Mr Bates vs The Put up Workplace’, it has been labelled Britain’s largest miscarriage of justice.
A lot of these affected suffered sick well being, marital breakdowns or died earlier than they have been exonerated.
Former chief government Paula Vennells, who insisted for years that the Horizon system was strong, was successfully stripped of her damehood in shame earlier this yr.
BCG’s work is predicted to incorporate assessing the viability of turning the Put up Workplace into an employee-owned mutual, a mannequin which is utilized by the John Lewis Partnership.
The Put up Workplace is Britain’s largest retail community, with roughly 11,500 branches, with the general public’s shareholding managed by UK Authorities Investments (UKGI).
In current months, requires a overview of the corporate’s possession mannequin have grown amid a company governance fiasco on the firm.
In January, Henry Staunton, the chairman, was sacked by Kemi Badenoch, the then enterprise secretary.
Mr Staunton subsequently disclosed an investigation into bullying claims towards Nick Learn, the Put up Workplace’s chief government, which the organisation mentioned in April had exonerated him.
Mr Learn, who has since resigned, was accused of fixed makes an attempt to safe pay rises, whilst sub-postmasters have been going through protracted delays to their entitlement to compensation after being wrongfully convicted.
As a part of their efforts to restore the Put up Workplace’s battered funds and fame, the federal government has parachuted in Nigel Railton, a former boss of Nationwide Lottery operator Camelot, as its chairman.
The Put up Workplace has been contacted for remark.
