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The Post Office is drawing up plans to close dozens of branches and axe hundreds of head office jobs as it tries to place its finances on a sustainable long-term footing.

Sky News has learnt that the state-owned company is preparing to announce in the coming days that it will shut or seek alternative franchising arrangements for more than 100 wholly owned branches.

The affected branches collectively employ close to 1,000 people and are said to be significantly loss-making.

A significant number of jobs – believed to be in excess of 1,000 – are also understood to be at risk at the Post Office’s headquarters. Further details of where the axe would fall were unclear on Tuesday afternoon.

Whitehall insiders said that the government had been consulted on the plans, which come as ministers explore the possibility of handing ownership of the network to thousands of sub-postmasters across Britain.

They added that union officials had also been briefed on the proposals, with one suggesting that an announcement could come as early as Wednesday or Thursday.

The cost-cutting measures are said to be designed to help the Post Office stem substantial financial losses, with the company requiring an annual government subsidy to stay afloat.

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Ministers to mutualise Post Office

One government source said the plans should be seen in the context of comments made by Jonathan Reynolds, the business secretary, on Monday at the public inquiry into the Horizon IT scandal.

Giving evidence, Mr Reynolds said: “I think despite the scale of this scandal, the Post Office is still an incredibly important institution in national life.

“I look at the business model of the Post Office, and I think even accounting for the changes in the core services that are provided … there’s still a whole range of services that are really important.

“But I don’t think postmasters make sufficient remuneration from what the public want from the Post Office, and I think that’s going to require some very significant changes to the overall business model of the Post Office.”

Improvements to the pay and working practices of sub-postmasters are expected to be announced imminently, the government source added.

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The 364 year-old institution has been engulfed in crisis since the scale of the Horizon scandal became clear, with hundreds of sub-postmasters wrongly prosecuted for theft and fraud offences.

Brought to a wider public audience by the ITV drama ‘Mr Bates vs The Post Office’, it has been labelled Britain’s biggest miscarriage of justice.

Many of those affected suffered ill health, marital breakdowns or died before they were exonerated.

Former chief executive Paula Vennells, who insisted for years that the Horizon system was robust, was effectively stripped of her damehood in disgrace earlier this year.

Last month, Sky News revealed that the Department for Business and Trade (DBT) has asked BCG, the management consultancy, to examine options for mutualising the Post Office.

BCG’s work is expected to include assessing the viability of turning the Post Office into an employee-owned mutual, a model which is used by the John Lewis Partnership.

The Post Office is Britain’s biggest retail network, with roughly 11,500 branches, with the public’s shareholding managed by UK Government Investments (UKGI).

In recent months, calls for a review of the company’s ownership model have grown amid a corporate governance fiasco at the company.

In January, Henry Staunton, the chairman, was sacked by Kemi Badenoch, the then business secretary.

Mr Staunton subsequently disclosed an investigation into bullying claims against Nick Read, the Post Office’s chief executive, which the organisation said in April had exonerated him.

Mr Read, who has since resigned, was accused of constant attempts to secure pay rises, even as sub-postmasters were facing protracted delays to their entitlement to compensation after being wrongfully convicted.

As part of their 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 its chairman.

A Post Office spokesperson said: “We will set out a “new deal” for postmasters and the future of the Post Office as an organisation.

“It will dramatically increase postmasters’ share of revenues, strengthen our branch network and make it work better for local communities, independent postmasters and our partners who own and operate branches.”

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More Britons than ever struggling to make ends meet, report warns

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More Britons than ever struggling to make ends meet, report warns

More people than ever are struggling to live on their current income – while just a third say they are living comfortably, according to new research.

Rising prices and sluggish pay increases have put many people’s finances under strain in recent years.

A record 26% now say making ends meet is difficult. Before the pandemic, it was 16%.

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UK inflation slows to 3.4%

Two-thirds also say their incomes haven’t kept up with inflation, according to the British Social Attitudes report.

That’s only marginally better than the 70% recorded during the height of the cost of living crisis in 2023.

Frozen tax thresholds also appear to be hitting home, with 61% saying taxes on low earners are too high, while 44% believe middle income earners also pay too much.

Those figures are up nine points and 13 points respectively since 2016.

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However, when it comes to the highest earners, 44% believe their taxes are too low.

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Britain’s energy price problem

The report also asked people about the welfare system – a timely insight with Labour MPs currently rebelling over plans to save £5bn from the budget.

It found support for more spending on disability benefits is at a record low of 45%, down from 67% in 2017 – but only 11% think spending should be reduced.

About 29% of those polled think it’s “too easy” for people to get disability benefits – but the same percentage also feel it’s “too difficult”.

Meanwhile, long waiting times appear to have played a part in the finding that a record 59% are now dissatisfied with the NHS. In 2019, it was just 25%.

Only 21% said they were satisfied with the health service.

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Reeves pledges NHS funding

The report is based on a representative, random sample of more than 4,000 people in the UK and was produced by the National Centre for Social Research.

It’s the longest-running measure of public opinion in Britain, having started in 1983.

Professor Sir John Curtice, senior research fellow, said: “The public are well aware of Britain’s problems – not least those of a failing health service and an economy in which many are struggling to make ends meet.

“Yet rather than turning their back on the state, for the most part, the public are still inclined to look to government to provide solutions.”

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What is NATO’s 5% defence spending goal?

Defence was also a key theme of the report – and researchers found about 40% of Britons support spending more money on weapons and troops.

A fifth (20%) said they would like to see a reduction.

It comes as the government revealed it was buying at least 12 stealth jets that can carry nuclear weapons, and as NATO countries, including the UK, promise to increase defence spending.

The National Security Strategy also said the UK must prepare for the potential of a “wartime scenario” in the “UK homeland” for the first time in many years.

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Almost everyone surveyed (90%) considered Russia a serious threat to world peace, followed by Iran (78%), North Korea (77%), Israel (73%), and China (69%).

The percentage supporting more defence spending remains relatively unchanged since 2016, before Russia invaded Ukraine.

However, the share supporting an increase is significantly higher now than that in 2006 (28%) and in the 1990s (17%).

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Post Office scandal: Govt has not done enough to ensure compensation for victims, committee of MPs finds

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Post Office scandal: Govt has not done enough to ensure compensation for victims, committee of MPs finds

The government has not done enough to ensure all victims entitled to compensation from the Post Office scandal have applied for it, a report has found.

Many current and former postmasters affected by Horizon IT failings and associated miscarriages of justice are not yet receiving fair and timely compensation, according to the report by the Public Accounts Committee (PAC).

Only 21% of the 18,500 letters the Post Office sent to postmasters to make them aware of the Horizon Shortfall Scheme had been responded to, figures provided by the Department for Business and Trade (DBT) show. About 5,000 further letters are expected to be sent in 2025.

Under the scheme, current and former postmasters who were financially affected by the Horizon IT system, but who were either not convicted or did not take the Post Office to the High Court, can either settle their claim for a final fixed sum of £75,000 or have it fully assessed.

There is also the Horizon Convictions Redress Scheme (HCRS), which is for sub-postmasters who had their convictions quashed after the passing of the Post Office (Horizon System) Offences Act last year.

The 800 or so sub-postmasters who are eligible to claim under the HCRS are entitled to a £600,000 full and final settlement, or the option to pursue a full claim assessment.

By the end of March, 339 had accepted the settlement sum, the report by the PAC, which is made up of MPs from all sides of the House of Commons, found.

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But the PAC report states that the government has no plans to follow up with people who are, or may be, eligible to claim but are yet to apply.

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‘They knew software was faulty’

The committee recommends that the DBT should outline what more it will do to ensure every affected postmaster is fully aware of their options for claiming.

A third scheme provides compensation to sub-postmasters who were wrongly convicted of fraud, theft and false accounting.

Of the 111 sub-postmasters eligible to claim for the Overturned Convictions Scheme and who are either entitled to a £600,000 full and final settlement, or to pursue a full claim assessment, 25 have not yet submitted a claim, some of whom represent the most complex cases.

The DBT has taken over the management of the scheme from the Post Office, and the PAC report recommends that the department should outline how it plans to handle the remaining cases under the scheme.

Read more on the Post Office scandal:
Analysis: Redress must not only be fair – it must be fast
Post Office hero reveals he received ‘take it or leave it’ offer

Sir Geoffrey Clifton-Brown MP, chair of the PAC, said thousands of people were “deeply failed” by the system during “one of the UK’s worst ever miscarriages of justice”.

He added: “This committee would have hoped to have found government laser-focused on ensuring all those eligible were fully and fairly compensated for what happened.

“It is deeply dissatisfactory to find these schemes still moving far too slowly, with no government plans to track down the majority of potential claimants who may not yet be aware of their proper entitlements.

“It is entirely unacceptable that those affected by this scandal, some of whom have had to go through the courts to clear their names, are being forced to relitigate their cases a second time.”

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The evidence that Russia sanctions evasion has intensified

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The evidence that Russia sanctions evasion has intensified

For more than a year, we have been tracking the flow of sanctioned items out of the UK and towards Russia.

Electronic equipment, radar parts, components used to make aircraft and drones. These are all items that have been banned from going to Russia. For good reason: while Britain is far from a global manufacturing powerhouse, it nonetheless still makes certain prized components used to make machinery.

In some hands, these components could be used for peaceful purposes, but they could also be used to wage war. All of which is why they are among the items sanctioned by G7 nations and banned from entry to Russia.

Conway1

A glance at the trade figures might lull you into thinking those sanctions have been extraordinarily successful. Look at the flows of these so-called “dual use” goods from the UK to Russia and they drop to zero shortly after the invasion of Ukraine and the imposition of those export bans. But that’s not the whole story – because over precisely the same period, exports of those same items to countries neighbouring Russia have risen sharply.

At this point, the data trail goes cold. As far as the statistics tell us, those components stay in the Caucasus and Central Asia. But there are two powerful pieces of evidence that suggest otherwise. The first is that we have travelled out to the border of Russia and filmed European-sanctioned goods (in this case cars, the hardest of all goods to disguise) passing across the border.

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Zelenskyy: Sanctions needed as countries supplying missile components to Russia

The second is that Ukrainian forces have repeatedly found weaponry and equipment containing European and British components inside them on the battlefield in their country. British technology has been used to kill Ukrainians – in spite of sanctions. That was one of the messages President Volodymyr Zelenskyy relayed in his interview with my colleague Mark Austin.

So, in the wake of that interview, we revisited the databases to see if those flows of goods to Russian neighbours had slowed in recent months.

Conway2

But, far from slowing, they’ve accelerated. In the past nine months, the flow of dual-use goods to Russian neighbours has risen by an average of 9%, compared with the monthly average between the Russian invasion of Ukraine in 2022 and last June. Those flows are 111% higher than they were before the invasion.

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Putin says ‘Ukraine is ours’

Conway3

Nor are the flows of British goods to Russian neighbours the only trend suggesting these components are being trans-shipped via third countries. Look at exports of sanctioned items to the United Arab Emirates and Turkey and they are up by a similar proportion.

In short: the evasion of sanctions continues much as it has done since the beginning of the war. For all the talk about the toughest sanctions regime in history, the reality on the ground is somewhat different.

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