Post Office to cut 100 jobs to fund subpostmaster payouts after Horizon scandal

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https://www.msn.com/en-gb/money/other/p ... r-AA1y4h4C

The Post Office has announced it will cut around 100 jobs as part of plans to boost payouts to thousands of its subpostmaster.

The job cuts were announced on Wednesday in a bid to create a more efficient team.

In his note to staff, chief executive Neil Brocklehurst wrote: "The intention behind these proposed changes remains to create a more efficient team that can effectively deliver a sustainable future for the network, for postmasters and their communities."

He added that the changes aim to "rebase our costs to help fund the upcoming transformative change" for a more sustainable financial footing.

The cuts are part of an overhaul announced by chairman Nigel Railton in November, which included plans to boost subpostmaster pay by £250million over five years.


The move comes as the Post Office faces ongoing scrutiny over the Horizon IT scandal, which has been labelled Britain's biggest "miscarriage of justice".

As part of the restructuring, the Post Office revealed plans to transfer or potentially close 115 directly-owned branches within its 11,500-strong network.

These branches could be transferred to retail partners or postmasters, though closure remains a possibility for some locations.

The Horizon scandal involved more than 900 subpostmasters who were wrongly prosecuted between 1999 and 2015 due to faulty accounting software.

A law introduced last May automatically quashes convictions of those prosecuted by the Post Office or CPS for offences related to Post Office business between 1996 and 2018.

The Metropolitan Police is currently investigating the Post Office over potential fraud offences.

Under the new compensation schemes announced last July, affected subpostmasters can choose between a £600,000 final settlement or pursue a higher amount if they believe they are owed more. All qualifying individuals will receive an immediate £200,000 payout.

The Government has budgeted £1billion for compensation, with some individual claims reportedly exceeding £1million.

Three separate compensation schemes are available to those affected by the scandal.

The Group Litigation Order Scheme offers £75,000 to the 555 former postmasters who won their group lawsuit.

The Overturned Convictions Scheme provides a £600,000 fast-tracked settlement option.

The Horizon Shortfall Scheme offers £75,000 to those who experienced shortfalls but weren't convicted.