The National Federation of SubPostmasters has voted in favour of forming a 15-year partnership with the Post Office.

At a special two-day conference in Birmingham yesterday, members voted on the future of the NFSP, choosing between a merger with the NFRN, a merger with the Communication Workers Union or £1.5m funding per year through a Memorandum of Understanding with the Post Office. It was revealed today that they opted for the latter and will now go through the process of reorganising the federation.

What is an MoU?

• A memorandum of understanding is a formal agreement between two or more parties and can be legally binding.
• Used to establish official partnerships, they state mutually accepted expectations between the two parties as they work towards a common objective.
• MoU's are less formal than contracts as they often contain fewer details and complexities, but more formal than a gentleman's handshake.

NFSP general secretary George Thomson claimed the agreement was a major step forward for the relationship between subpostmasters and the Post Office.

"“This decision by members will ensure that subpostmasters across the UK continue to have strong representation and receive the support they need," he said.

“Subpostmasters are facing increasing competitive pressures and challenges. It’s vital they have access to the best possible support to build successful and sustainable branches.

Initial reaction from Twitter was of shock at the vote, with many subpostmasters concerned that they will lose their identity under the new partnership