The government has commissioned an independent investigation into the controversial Network Transformation Programme (NTP), examining whether postmasters were subjected to coercion, bullying and poor financial advice during the scheme’s rollout.
Announced by the Department for Business and Trade (DBT), the probe will scrutinise how Post Office Limited implemented the programme between 2010 and 2019. The investigation will be led by Adam Tolley KC and will run separately from the ongoing Horizon IT Public Inquiry.
The legal team will assess allegations including coercion, bullying and the provision of unregulated financial advice, alongside broader concerns about contractual clarity, implementation practices, misrepresentation and the overall impact on postmasters.
The move follows sustained campaigning by the National Federation of SubPostmasters (NFSP) and legal firm Howe + Co Solicitors. The NFSP said the investigation represents the culmination of three years of pressure on behalf of affected members.
“Thank you to all postmasters who came forward and shared their experiences of feeling coerced, pressured or bullied into converting to new contracts, which ultimately left many worse off,” NFSP chief executive Calum Greenhow said.
“Many postmasters agreed to Network Transformation in 2011 based on guidance from government and Post Office that significant additional work would come to the network, providing a viable future and giving postmasters a say in the business through mutualisation.
“To date, none of that has materialised. In fact, the opposite has happened, instead of additional government work coming to post offices, services such as benefits payments have been removed.”
Originally designed to modernise the network and reduce costs, the NTP offered postmasters options to upgrade, relocate or exit with compensation. At its launch, then postal affairs minister Edward Davey outlined ambitions for post offices to become a “front office for government”.
However, the NFSP claims the opposite occurred, with services such as benefits payments withdrawn and overall government-related business declining sharply. It cites a fall in the value of government services delivered through post offices from £576 million in 2005 to around £30m over two decades, alongside a drop in postmaster income from £478m in 2013 to £369m by 2019.
The investigation will proceed in three phases: evidence gathering, assessment of potential misconduct, and evaluation of the impact on postmasters. Findings will inform whether further action is required by DBT.
“It is not lost on the NFSP how Post Office conducted itself during the Complaints and Mediation Scheme between 2012 and 2015, which was examined in detail by the Sir Wyn Williams Horizon IT Inquiry,” Greenhow noted, adding: “It is therefore vital that PO acts openly and transparently today, ensuring Mr Tolley has access to all available evidence so he can determine whether PO acted inappropriately. The PO of today cannot behave in the same way as the PO of the past.”
Postmasters and other stakeholders have been invited to submit evidence by emailing it to NTPInvestigation@businessandtrade.gov.uk.