MP claims Post Office investment too risky for some

The legacy of the horizon IT scandal means people are "reluctant" to take on the running of new Post Office branches, an MP has said.

Hundreds of sub postmasters were accused or convicted of theft and fraud because of a faulty computer system called Horizon. Residents in Somerton, Somerset, have attempted to re-open their Post Office after it closed down in 2022.

Sarah Dyke, the local MP said the upfront costs of up to £25,000 for businesses to set up the counters could be a risk for potential sub-postmasters.

The Post Office said it was "keen to discuss with retailers about the business opportunity in Somerton", as well as its "improved remuneration package".

Ms Dyke said she "urged" the Post Office "to look very carefully at removing the barriers and encouraging small shops to open a post office counter to serve their community."

More than 800 people signed a petition to bring back a Post Office service in Somerton.

The MP said she met with senior leadership of the Post Office in Parliament, who she said are "very aware" of "the critical needs of rural post offices".

However, she also said many of the rural services are just drop and collect points, instead of a full Post Office, arguing that is "not acceptable" in remote areas such as Somerton.

A Post Office spokesperson said: "Somerton has a Post Offices within three miles as required by Government, however, we are exploring the possibility of re-opening a Post Office in the area.

"Post Offices provide communities with essential services, such as banking and mail services, so the additional customer footfall generated from these services, plus the post office income can bring benefits to the business owner.

"Therefore, a retailer may decide to invest in their business by applying to operate and install a Post Office," the spokesperson added.

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