Whitehall will present a plan to mutualize the post office affected by the crisis

Ministers are exploring plans to hand over ownership of the Post Office to thousands of deputy postmasters across the UK in a historic overhaul of the 364-year-old institution.

Sky News has learned that the Department for Business and Trade (DBT) has asked management consultancy BCG to look at options for mutualising the post office.

The work is said to be at an early stage, but a report is expected to be delivered to Jonathan Reynolds, the business secretary, in the coming months, according to a government source.

BCG’s work is expected to include assessing the feasibility of turning the post office into an employee-owned mutual, a model used by the John Lewis Partnership, the Whitehall insider added.

People close to the process warned this weekend that decisions had not yet been made, and assured that a mutualization of Correus could be a long and complicated process.

The Post Office is the UK’s largest retail network, with approximately 11,500 branches, but is only financially viable thanks to an annual grant it receives from the government.

In April, Kevin Hollinrake, then Conservative minister responsible for postal affairs, met with union leaders and representatives of the co-operative movement to discuss the possibility of mutualising it.

The minister currently overseeing the Post Office, Gareth Thomas, chaired the Co-operative Party for almost 20 years.

Both Mr. Thomas as Mr. Reynolds is scheduled to give evidence to the public inquiry into the Horizon IT crisis next month, and may be asked about the project BCG is undertaking during his appearances.

The post office is wholly owned by the state, with the public stake managed by UK Government Investments (UKGI).

Demands for an overhaul of the company’s ownership model have grown in recent months amid growing public anger over the wrongful conviction of hundreds of deputy postmasters after they were accused of stealing cash from its branches.

Crystallized by the ITV drama Mr Bates vs The Post Office, which exposed the scandal to a wider audience, it has been described as the UK’s biggest miscarriage of justice.

Many of those affected suffered health problems, marriage breakdowns or died before being exonerated.

This week, Sir Alan said the government should consider suing the company’s former directors

Sir Alan, who was knighted in the King’s birthday honors in June, has yet to agree a compensation deal with the government.

The Post Office’s problems have deepened this year, with internal governance disputes and disputes between the company’s board and its owner erupting in public.

In January, Henry Staunton, the chairman, was sacked by Kemi Badenoch, the then business secretary, over what she alleged were serious mismanagement.

Staunton subsequently revealed an investigation into bullying allegations against Nick Read, the Post Office’s chief executive, who the organization said in April had exonerated.

Mr Read was accused of constant attempts to secure pay rises, even as deputy postmasters faced lengthy delays in their right to compensation after being wrongly convicted.

As part of its efforts to repair the post office’s battered finances and reputation, the government has parachuted in Nigel Railton, a former boss of National Lottery operator Camelot, as chairman.

One of Mr Railton’s first major tasks is to find a new chief executive, after Mr Read confirmed last month he was leaving after five-and-a-half years in the job.

Any attempt to mutualize the company should also take into account the current financial cost of the compensation bill for the Horizon IT scandal, as well as the fact that a replacement system has yet to be successfully implemented.

After meeting Hollinrake in April, CWU national officer Andy Furey said: “There needs to be a whole new operating model for the Post Office to remain relevant to the society

“The people on the front line who deliver service to communities every day deserve a much greater say in how the Post Office runs.”

This weekend, a spokesman for the Department of Business and Trade declined to comment.

(c) Sky News 2024: Whitehall to unveil plan to mutualise crisis-hit Post Office