Ownership of the Post Office could be handed over to its postmasters, as the government launches its first comprehensive review of the retail business in 15 years.
The green paper seeks to transform the organisation’s culture in the wake of the Horizon scandal and changing customer demands, giving postmasters and the public the opportunity to shape the Post Office’s future.
This includes its ownership model, with a mutualisation concept on the table for consideration. The state-owned organisation consists of more than 11,500 locations across the UK, which are primarily run by franchisees. It has 108 directly managed branches, which will all be franchised out by autumn this year.
The consultation will run for 12 weeks, closing on 6 October. Key areas it will examine include how Post Office services should evolve to meet changing consumer needs, ways to strengthen the relationship between the Post Office and its postmasters, and options for modernising the network while ensuring services remain within local reach.
“Post Offices continue to be a central part of our high streets and communities across the country,” said Post Office minister Gareth Thomas. “However, after 15 years without a proper review, and in the aftermath of the Horizon scandal, it’s clear we need a fresh vision for its future.
“This green paper marks the start of an honest conversation about what people want and need from their Post Office in the years ahead.
“I look forward to hearing the views of customers, business owners and postmasters so we can build a Post Office capable of serving the public for generations to come.”
Horizon inquiry
Considerations for the new ownership model will follow the publication of the final Horizon inquiry report later this year. Wyn Williams released the first part of the report into the scandal last week, which focused on the human impact and rectifying the issue for victims.
This comes after an unprecedented period in which the Post Office faced a series of major challenges, from the Horizon IT scandal to significant changes in consumer behaviour, such as a rise in online shopping and falling demand for traditional post.
Postmaster Dipash Modha said: “I’m very excited the government has launched this consultation to listen to postmasters’ and the public’s views on the future of the Post Office. Post Offices like mine in Edgware Road are at the heart of high streets in every part of the country and millions of customers will continue to rely on our essential services in the decades ahead.
“We might not get this chance to let our voices be heard for a long time, so standing still is not an option – we need to take action now. I ask my fellow postmasters to please respond to the green paper in the next couple of months.”
Research published alongside the green paper also highlighted the important role the Post Office still plays in the daily lives of people and businesses, adding social value of around £5.2bn per year to households and £1.3bn annually to small and medium-sized businesses.
As part of the government’s commitment to securing the future of the institution, ministers have also announced plans to award a new subsidy package of up to £118m to fund the Post Office’s Transformation Plan and further investment to improve the network.
This funding will protect key services, including access to cash deposits and withdrawals as well as key government services such as passport applications and the DVLA, alongside helping the Post Office deliver cost-saving measures in its transformation plan, part of the new deal for postmasters.
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