Recommendation 19

In December 2020 the Department wrote to the Post Office, noting that the number of applications to the Scheme was ‘…materially higher than expected resulting in a corresponding increase in possible scheme claims and costs…’ and that the Post Office considered ‘…any amount in excess of the original budget will be unaffordable…’. With the Secretary of State as sole shareholder of the Post Office, the Department determined that it would apply to HM Treasury for future funding so the Post Office could meet its obligations for payments under the scheme (providing so-called ‘comfort’ to the Post Office that it would be able to meet its liabilities as and when they fall due).64