Ministers are exploring plans handy possession of the Submit Workplace to hundreds of sub-postmasters throughout Britain in an historic shake-up on the 364 year-old establishment.
Sky Information has learnt that the Division for Enterprise and Commerce (DBT) has requested BCG, the administration consultancy, to look at choices for mutualising the Submit Workplace.
The work is claimed to be at an early stage, however is predicted to lead to a report being handed to Jonathan Reynolds, the enterprise secretary, within the coming months, in response to a authorities insider.
BCG’s work is predicted to incorporate assessing the viability of turning the Submit Workplace into an employee-owned mutual, a mannequin which is utilized by the John Lewis Partnership, the Whitehall insider added.
Folks near the method cautioned this weekend that no selections had but been taken, and stated {that a} mutualisation of the Submit Workplace may very well be a prolonged and complex course of.
The Submit Workplace is Britain’s largest retail community, with roughly 11,500 branches, however is simply financially viable due to an annual subsidy it receives from the federal government.
In April, Kevin Hollinrake, the then Conservative minister accountable for postal affairs, met commerce union officers and representatives of the co-operative motion to debate the opportunity of mutualising it.
The minister who at the moment oversees the Submit Workplace, Gareth Thomas, chaired the Co-operative Celebration for practically 20 years.
Each Mr Thomas and Mr Reynolds are scheduled to present proof to the general public inquiry into the Horizon IT disaster subsequent month, and could also be requested concerning the mission being undertaken by BCG throughout their appearances.
The Submit Workplace is wholly owned by the state, with the general public’s shareholding managed by UK Authorities Investments (UKGI).
In latest months, requires a evaluate of the corporate’s possession mannequin have grown amid rising public anger on the wrongful conviction of lots of of sub-postmasters after they have been accused of stealing money from their branches.
Crystallised by the ITV drama Mr Bates vs The Submit Workplace, which uncovered the scandal to a wider viewers, it has been labelled Britain’s largest miscarriage of justice.
A lot of these affected suffered ailing well being, marital breakdowns or died earlier than they have been exonerated.
This week, Sir Alan stated the federal government ought to contemplate suing former administrators of the corporate
Sir Alan, who was knighted within the King’s birthday honours in June, remains to be to agree a compensation settlement with the federal government.
The Submit Workplace’s travails have deepened this yr, with inner governance rows and disputes between the corporate’s board and its proprietor erupting in public.
In January, Henry Staunton, the chairman, was sacked by Kemi Badenoch, the then enterprise secretary, for what she alleged have been severe governance failings.
Mr Staunton subsequently disclosed an investigation into bullying claims in opposition to Nick Learn, the Submit Workplace’s chief govt, which the organisation stated in April had exonerated him.
Mr Learn was accused of fixed makes an attempt to safe pay rises, whilst sub-postmasters have been dealing with protracted delays to their entitlement to compensation after being wrongfully convicted.
As a part of their efforts to restore the Submit 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.
One in every of Mr Railton’s first main duties is to discover a new chief govt, after Mr Learn confirmed final month that he was leaving after five-and-a-half years within the job.
Any try to mutualise the corporate would additionally have to take into consideration the continuing monetary price of the compensation invoice for the Horizon IT scandal, in addition to the truth that a alternative system has but to be efficiently carried out.
After assembly Mr Hollinrake in April, Andy Furey, a nationwide officer on the CWU Union, stated: “There must be a completely new working mannequin for the Submit Workplace going ahead to stay related for society.
“[The] people on the frontline delivering the service to communities on a daily basis deserve a much bigger say in the running of the Post Office.”
This weekend, a spokesman for the Division for Enterprise and Commerce declined to remark.
