The UK government has proposed a major shift in Post Office ownership, suggesting it could soon be run by its postmasters. Additionally, this move comes as part of a new public consultation on the future of the service. Furthermore, Post Office Minister Gareth Thomas emphasized the need for a “fresh vision” while ruling out branch closures.
Currently, the Post Office operates over 11,500 branches nationwide. Moreover, it remains fully state-owned and taxpayer-funded. However, mutual ownership ideas have circulated for over a decade. Unfortunately, these plans stalled due to the Horizon IT scandal, which wrongly convicted hundreds of postmasters.
Last week, a public inquiry highlighted the devastating impact on affected postmasters. Consequently, Thomas stated that fixing “fundamental problems” is now a priority. He also stressed the need to regain public and postmaster trust.
The consultation will explore long-term reforms, including a postmaster-owned Post Office model. Alternatively, a charter system, similar to the BBC, is also under consideration. Nevertheless, changes may not happen before 2030.
The government seeks input on expanding Post Office services, especially banking. Since many banks close branches, the Post Office could fill this gap. Currently, it handles cash deposits, passport applications, and benefit payments. However, only larger branches offer full services.
Despite adding £5.2bn in social value yearly, the Post Office struggles financially. Declining letter volumes and competition have hurt profits. Therefore, state subsidies remain essential. Meanwhile, postmasters face stagnant pay, with nearly half of branches barely breaking even.
The government outlined two possible future structures. First, a joint venture between the state and a postmaster-owned Post Office body. Second, a charter model with government-set principles but no direct ownership.
Co-operatives UK CEO Rose Marley supports mutual ownership. She argues employee-run businesses are more productive. Additionally, she believes the Horizon scandal might have been avoided under shared ownership.
For now, the Post Office focuses on stability before any ownership changes. Meanwhile, replacing the Horizon system may take up to five years. The public now has 12 weeks to share their views on these transformative plans.
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