Ministers explore plan to hand ownership of Post Office to thousands of sub-postmasters in major shake-up

This could include an employee-owned mutual model, similar to that used by the John Lewis Partnership.

The exploration of new ownership models is seen as part of efforts to repair the Post Office's battered finances and reputation following public anger over the Horizon IT scandal, which saw hundreds of sub-postmasters wrongfully convicted of theft.

However, the process is still in its early stages, with no decisions yet made.

A report from BCG is expected to be delivered to Business Secretary Jonathan Reynolds in the coming months, according to Sky News.

Branded as Britain's biggest miscarriage of justice, the Horizon IT scandal was brought to wider public attention by the ITV drama "Mr Bates vs The Post Office".

Many affected sub-postmasters suffered ill health, marital breakdowns, or died before being exonerated.

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In response to the crisis, Sir Alan Bates, a key figure in exposing the scandal, suggested the Government should consider suing former Post Office directors.

Sir Alan, knighted in June, is still negotiating his compensation settlement with the Government.

The scandal has also prompted calls for a review of the Post Office's ownership model.

Andy Furey, a national officer at the CWU Union, stated: "There has to be a totally new operating model for the Post Office going forward to remain relevant for society."

BCG's work on mutualising the Post Office is expected to include assessing the viability of an employee-owned model.

A Government insider noted that the report is likely to be handed to Business Secretary Jonathan Reynolds in the coming months.

Both Reynolds and Gareth Thomas, the minister overseeing the Post Office, are scheduled to give evidence to the public inquiry into the Horizon IT crisis next month.

They may be questioned about the BCG project during their appearances.

The Post Office is currently wholly owned by the state, with the public's shareholding managed by UK Government Investments (UKGI).

People close to the process have cautioned that mutualisation could be a lengthy and complicated process.

Any attempt to mutualise the Post Office would face significant challenges as the organisation is currently only financially viable due to an annual Government subsidy.

Despite the challenges, there is growing support for giving sub-postmasters a greater say in the running of the Post Office with Furey claiming: "The people on the frontline delivering the service to communities on a daily basis deserve a much bigger say in the running of the Post Office."