Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Accepted
Department's Letter of Support crucial for Post Office's financial stability as a going concern.
Conclusion
The Post Office is wholly owned by the Department, although the Department does not have responsibility for the day-to-day running of the Post Office. The Department supports the Post Office through the funding of all Horizon redress compensation schemes. However, this funding alone is insufficient to guarantee the financial stability of the Post Office. The Department provides an annual ‘Letter of Support’ to the Post Office, giving assurance that the Department will deliver financial support to help the organisation meet is liabilities as they fall due. The existence of the Letter of Support and a summary of the assurance it provides is disclosed in both the Department and Post Office Annual Report and Accounts. The Post Office Board places significant reliance on this letter annually when stating the Post Office is a going concern.29
Government Response Summary
The government commits to writing to the Committee in Autumn 2025, following the publication of the Treasury Minute, concerning the Post Office's financial stability and the ongoing reliance on the annual Letter of Support.
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2025 3.2 The department will write to the Committee in Autumn 2025, following the publication of this Treasury Minute.