THE POST Office could scrap two in three jobs in a cost-cutting drive.
Some of the estimated £200million savings will be used to improve sub-postmasters’ pay, it was reported last night.
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A review — announced in the wake of the Horizon IT scandal — may see staff cut from 3,100 to around 1,000.
Roles at the London HQ could go.
Sub-postmasters, who run most of the 11,500 Post Office branches, will not be affected.
Similarly, posties – employed by Royal Mail – would not be affected.
But grants to rural Post Offices could be cut, raising the risk of closures.
The Post Office said the priorities of its interim chairman are “remediation for post-masters affected by the IT scandal” and boosting their income.
Its recommendations were currently under discussion with the government.
More than 900 former sub-postmasters were wrongly convicted of theft and fraud between 1999 and 2015.
The faulty Horizon IT system made it look as though money had gone missing.
Former PM Rishi Sunak ordered their mass exoneration once ITV drama Mr Bates vs The Post Office highlighted their plight.
A Post Office spokesman said: “Our interim chair commissioned an independent review that’s looking at the sustainability of our branches and how we can best serve communities into the future.
“He has been clear from the outset that remediation for postmasters affected by the IT scandal and providing postmasters with a higher revenue share are his priorities.
“A range of recommendations are currently under discussion with the Government, and we are engaging with bodies representing Postmasters as these discussions continue.”
A Department for Business and Trade spokesman said: “The future of the Post Office is crucial for customers, postmasters, businesses and communities, helping to drive growth across the country.
“Nigel Railton has commissioned a wide-ranging, independent review regarding its future direction and a number of recommendations are currently under discussion.”
THE POST OFFICE SCANDAL – A TIMELINE OF KEY EVENTS
– 1999
The Horizon IT system starts to be rolled out in Post Office branches across the UK.
– 2000
Alan Bates reports issues with the Horizon IT system.
– 2003
Alan Bates has his contract terminated after refusing to accept liability for the shortfalls in the accounts at his Llandudno branch in North Wales.
– 2004
Lee Castleton, from Bridlington, East Yorkshire, was found to have a £25,000 shortfall at his branch. He was made bankrupt after he lost his legal battle with the Post Office.
– 2009
Computer Weekly magazine breaks the story of seven subpostmasters beginning their fight for justice.
The Justice for Subpostmasters Alliance is established.
– 2010
Pregnant subpostmaster Seema Misra, who ran a post office in West Byfleet, Surrey, is jailed after being accused of stealing £74,000.
– 2015
Post Office boss Paula Vennells tells the business select committee that there is no evidence of miscarriages of justice.
Post Office halts prosecutions of subpostmasters.
– 2017
Legal action is launched against the Post Office by a group of 555 subpostmasters.
– 2019
A High Court judge rules that Horizon contained a number of “bugs, errors and defects” and there was a “material risk” that shortfalls in Post Office branch accounts were caused by the system.
The Post Office agreed to pay out £58million to the 555 subpostmasters.
Post Office boss Paula Vennells is appointed a CBE.
– 2020
The Post Office does not oppose 44 appeals against convictions of subpostmasters.
– 2021
A statutory inquiry looking into the failings of the Horizon system and the wrongful convictions of subpostmasters begins.
The Court of appeal quashes 39 wrongful crown court convictions.
– 2023
The Government announces that every wrongly convicted subpostmaster will be offered £600,000 in compensation.
– 2024
ITV drama Mr Bates vs The Post Office airs for the first time.
The Metropolitan Police say they are looking at “potential fraud offences arising out of these prosecutions”, for example “monies recovered from subpostmasters as a result of prosecutions or civil actions”.