Post Office was reluctant to cut costs despite 143 central staff earning more than £100k

The Post Office was reluctant to cut costs despite having 143 central staff earning more than £100,000 a year, according to a report by the National Audit Office (NAO). The report found that the Post Office’s approach to cost-cutting had been “inconsistent and fragmented”, and that it had “failed to take sufficient account of the needs of its customers and the impact on its staff”.

The NAO’s report comes after a series of controversies surrounding the Post Office, including a long-running scandal involving the wrongful prosecution of hundreds of sub-postmasters. The report found that the Post Office had a “culture of risk aversion”, which had “prevented it from making necessary changes”.

The report found that the Post Office had “missed opportunities to improve its efficiency and reduce its costs”. It also found that the Post Office had “failed to provide effective leadership and oversight” of its operations.

The NAO’s report has been met with criticism from both the Post Office and its unions. The Post Office has defended its record, saying that it has been working to reduce its costs. The Communication Workers Union (CWU) has said that the report is a “damning indictment” of the Post Office’s management.

The report’s findings will be of concern to the government, which is the Post Office’s main shareholder. The government has already announced plans to reform the Post Office, and the NAO’s report will add further pressure for action.

Key Findings

The NAO’s report found that the Post Office:

• Had 143 central staff earning more than £100,000 a year.
• Had a “culture of risk aversion”, which had “prevented it from making necessary changes”.
• Had “missed opportunities to improve its efficiency and reduce its costs”.
• Had “failed to provide effective leadership and oversight” of its operations.

Recommendations

The NAO made a number of recommendations for the Post Office, including:

• To develop a more “consistent and effective” approach to cost-cutting.
• To take account of the needs of its customers and the impact on its staff.
• To improve its governance and oversight.

Reaction

The Post Office has defended its record, saying that it has been working to reduce its costs. The Communication Workers Union (CWU) has said that the report is a “damning indictment” of the Post Office’s management.

Next Steps

The government has already announced plans to reform the Post Office, and the NAO’s report will add further pressure for action.