Latest news with #HorizonITScandal
The Guardian
14-07-2025
- Business
- The Guardian
Post Office could hand ownership to staff amid review after Horizon scandal
Ministers are to consider handing over ownership of the Post Office to its operators after the Horizon IT scandal. The Department for Business and Trade (DBT) has published a green paper, starting the first big review of the scandal-plagued organisation in 15 years. The review, which will run until 6 October, follows the publication last week of the first part of the two-year public inquiry into the Horizon IT scandal. Ministers said that part of the review will include looking at the ownership model of the Post Office, which is ultimately controlled by the government, including the possibility of mutualisation. Ministers have previously met representatives of post office operators to discuss the possibility of handing ownership to the network branch managers who run its 11,500 outlets. 'This green paper marks the start of an honest conversation about what people want and need from their Post Office in the years ahead,' said Gareth Thomas, the post office minister. 'Post Offices continue to be a central part of our high streets and communities across the country. 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 the future.' About 1,000 post office operators were prosecuted by the Post Office between 1999 and 2015 because of faulty Horizon accounting software that made it look as though they had been committing fraud. The scandal, widely considered to be the most widespread miscarriage of justice in UK history, was the subject of the critically acclaimed ITV drama Mr Bates vs the Post Office, which aired last year and thrust the problem into the national spotlight. Bates has previously criticised the idea of mutualisation. 'Currently, the government subsidises it and will continue to have to support it. They can't just give it to the subpostmasters and say: 'Here you go, mate',' he said last year. In November, the Post Office announced it was to close up to 115 branches putting 2,000 jobs at risk. Nigel Railton, the Post Office chair, is cutting hundreds of staff jobs in order to add £250m annually to operators' remuneration. On Monday, the government also announced that it is to provide a further £118m subsidy to help the Post Office push through its restructure and transformation plans. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The Communications Workers Union (CWU) criticised the award of the subsidy and said the Post Office and Royal Mail, which were split more than a decade ago, needed to be reunified. 'Successive governments have failed the Post Office, its workers and customers,' said a spokesperson for the CWU. 'And choosing to use government subsidies for planned redundancies, closures and so-called transformation plans that are nothing more than managed decline. The only way to build a successful future is to bring Royal Mail and the Post Office back together through a new joint venture ownership model.' The owner of the Royal Mail was bought by Czech tycoon Daniel Křetínský's EP Group in a £3.6bn deal that took the stock market listed business private earlier this year. The government said its green paper will provide the opportunity to work 'hand in hand' with post office operators and the public to ensure the company is 'put on a path to a strong and sustainable future'. 'We now have a once-in-a-decade opportunity to have a national conversation about the future of our post offices and their role in supporting communities across the UK,' said Neil Brocklehurst, the chief executive of the Post Office. According to the latest official figures, just over £1bn has been paid out in compensation to more than 7,300 claimants across the four redress schemes up to 2 June.
Yahoo
14-07-2025
- Business
- Yahoo
Post Office transformation effort gets £118m funding boost
Efforts to turn around the crisis-hit Post Office have been given a £118m funding boost as the government continues to consider a new ownership structure. Sky News revealed in October last year, as the Horizon IT scandal inquiry neared its conclusion, that a government-commissioned review was to explore the idea of a mutual model. It would effectively see ownership transferred from the government to sub-postmasters, creating a John Lewis Partnership-style structure, if such an option was to be followed through. Money latest: It's being considered as a way to return public and postmaster trust to the Post Office. The options are to be the subject of a 12 week consultation on the organisation's future. The new £118m subsidy package was being made available, the Department for Business and Trade said, to fund the transformation plan and further investment. "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", the statement said. Post Office minister Gareth Thomas added: "Post Offices continue to be a central part of our high streets and communities across the country. "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." But the general secretary of the Communication Workers Union, Dave Ward, accused the department of lacking sincerity. He responded: "Successive governments have failed the Post Office, its workers and customers - and choosing to use government subsidies for planned redundancies, closures and so-called transformation plans that are nothing more than managed decline. "This Labour Government are unashamedly doing exactly the same as the Tories did - managing the politics of the Post Office, prioritising further cost-cutting and offering no vision for its future." The update was provided as sub-postmasters await further conclusions from the Horizon IT inquiry. The first volume, published last week, highlighted the impact of false theft and false accounting accusations made against at least 1,000 postmasters. It concluded that 13 people may have taken their own lives after being falsely accused of wrongdoing, based on evidence from the IT system that the Post Office and developers Fujitsu knew could be faulty. At the same time, inquiry chair Sir Wyn Williams recommended further action to improve compensation outcomes amid years of frustration over delays and wrangling over the sums due.
Sky News
14-07-2025
- Business
- Sky News
Post Office transformation effort gets £118m funding boost
Why you can trust Sky News Efforts to turn around the crisis-hit Post Office have been given a £118m funding boost as the government continues to consider a new ownership structure. Sky News revealed in October last year, as the Horizon IT scandal inquiry neared its conclusion, that a government-commissioned review was to explore the idea of a mutual model. It would effectively see ownership transferred from the government to sub-postmasters, creating a John Lewis Partnership-style structure, if such an option was to be followed through. It's being considered as a way to return public and postmaster trust to the Post Office. The options are to be the subject of a 12 week consultation on the organisation's future. The new £118m subsidy package was being made available, the Department for Business and Trade said, to fund the transformation plan and further investment. "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", the statement said. Post Office minister Gareth Thomas added: "Post Offices continue to be a central part of our high streets and communities across the country. "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." 2:55 But the general secretary of the Communication Workers Union, Dave Ward, accused the department of lacking sincerity. He responded: "Successive governments have failed the Post Office, its workers and customers - and choosing to use government subsidies for planned redundancies, closures and so-called transformation plans that are nothing more than managed decline. "This Labour Government are unashamedly doing exactly the same as the Tories did - managing the politics of the Post Office, prioritising further cost-cutting and offering no vision for its future." The update was provided as sub-postmasters await further conclusions from the Horizon IT inquiry. The first volume, published last week, highlighted the impact of false theft and false accounting accusations made against at least 1,000 postmasters. It concluded that 13 people may have taken their own lives after being falsely accused of wrongdoing, based on evidence from the IT system that the Post Office and developers Fujitsu knew could be faulty. At the same time, inquiry chair Sir Wyn Williams recommended further action to improve compensation outcomes amid years of frustration over delays and wrangling over the sums due.
BBC News
11-07-2025
- Business
- BBC News
Rural community campaigns to get post office reopened in town
The legacy of the horizon IT scandal means people are "reluctant" to take on the running of new Post Office branches, an MP has of sub postmasters were accused or convicted of theft and fraud because of a faulty computer system called Horizon. Residents in Somerton, Somerset, have attempted to re-open their Post Office after it closed down in 2022. Sarah Dyke, the local MP said the upfront costs of up to £25,000 for businesses to set up the counters could be a risk for potential Post Office said it was "keen to discuss with retailers about the business opportunity in Somerton", as well as its "improved remuneration package". Ms Dyke said she "urged" the Post Office "to look very carefully at removing the barriers and encouraging small shops to open a post office counter to serve their community." More than 800 people signed a petition to bring back a Post Office service in MP said she met with senior leadership of the Post Office in Parliament, who she said are "very aware" of "the critical needs of rural post offices".However, she also said many of the rural services are just drop and collect points, instead of a full Post Office, arguing that is "not acceptable" in remote areas such as Somerton.A Post Office spokesperson said: "Somerton has a Post Offices within three miles as required by Government, however, we are exploring the possibility of re-opening a Post Office in the area. "Post Offices provide communities with essential services, such as banking and mail services, so the additional customer footfall generated from these services, plus the post office income can bring benefits to the business owner. "Therefore, a retailer may decide to invest in their business by applying to operate and install a Post Office," the spokesperson added.
Yahoo
09-07-2025
- Yahoo
Post Office compensation schemes 'cruel and never-ending'
Victims of the Post Office Horizon IT scandal have said the compensation process is "cruel", "never-ending" and designed to make them want to give up. Former sub-postmasters told the BBC they are still waiting for final settlements to be agreed, years after hundreds of victims were accused of stealing money that was found to be the fault of an accounting system. A report from an official inquiry said the scandal has had a "disastrous" impact on those wrongly accused and prosecuted for criminal offences. Maria Lockwood, who ran a Post Office in Huddersfield, said compensation for victims could have been settled "a long time ago", but instead it is a "cruel, cruel" process. Appearing on BBC Breakfast to discuss the report, 10 former sub-postmasters and postmistresses all agreed that the compensation schemes feel designed to make them give up. Tracy Felstead, who went to prison when she was 19 years old, said her claim has been in since February. However, she said all she has had since then is more and more questions including a third request for a medical report. "How many more medical reports do you need to prove what's happened? They know what's happened to us," she said. Former judge Sir Wyn Williams has been chairing a long-running inquiry into the Horizon scandal, and on Tuesday released a report looking at the impact on victims, as well as the fairness and speed of the compensation process. Sir Wyn criticised the "formidable difficulties" around the delivery of financial redress for victims, which is currently organised around three different schemes. He recommended: A mechanism to deliver redress "to persons who have been wronged by public bodies" should be established Free legal advice should be extended to claimants on one of the schemes – the Horizon Shortfall Scheme. Close family members of people who have "been most adversely affected by Horizon" should be compensated Sir Wyn estimates that there are currently 10,000 eligible claimants in three compensation schemes, and that number is likely to rise by at least hundreds, if not more. Scott Darlington, who was sub-postmaster of Alderley Edge Post Office, was doubtful that the government will act on the report. "Will they take any of the recommendations? They're not obliged to, and their track record shows that they've tried to avoid things that they have to do." The first volume of the report, published after a long-running inquiry into the scandal, set out in full the devastating impact on people's lives. At least 59 people told the inquiry they had contemplated suicide at various points, of whom 10 attempted to take their own lives, some on more than one occasion. Families of victims said at least 13 more people had killed themselves. Many victims suffered psychiatric and psychological difficulties with some detailing how they had abused alcohol due to the stress of the situation, while a number said they couldn't sleep at night without drinking first. One postmistress said she "went to rehab for eight months as the Post Office had turned her to drink to cope with the losses".
