PRESS RELEASE : New compensation scheme opens for postmasters who exposed Horizon scandal [March 2023]
The press release issued by the Department for Business and Trade on 23 March 2023.
Postmasters who first took High Court legal action against Post Office over the Horizon IT system and exposed the scandal can now apply to a new compensation scheme.
- New scheme will make sure these postmasters receive full and fair compensation.
A new scheme to compensate the postmasters who exposed the Post Office Horizon Scandal from the 1990s is now open.
The postmasters who took the first High Court legal action against the Post Office agreed a settlement worth £43 million plus legal costs in 2019. The case marked a turning point in the Post Office Horizon scandal and led to the Government setting up the Post Office Horizon IT Inquiry we see today.
However, much of the money from the settlement was taken up by the associated costs of funding their landmark case. They were also ineligible for the Historical Shortfall Scheme that was created to compensate others who were affected by Post Office and Horizon.
The scheme opening today recognises the unique position of these postmasters and will make sure they will have access to compensation on the same basis as other postmasters who were so badly wronged by the actions of Post Office and the Horizon system.
Post Office Minister Kevin Hollinrake said:
The trailblazing postmasters who exposed the Horizon scandal were instrumental in securing justice for all of those affected.
We will keep fighting for the postmasters and their families, and it is right that they will now receive full and fair compensation for the pain and suffering caused by this scandal.
Starting in the late 1990s, the Post Office began installing Horizon accounting software, but faults in the software led to shortfalls in branches’ accounts. The Post Office demanded sub-postmasters cover the shortfalls, and in many cases wrongfully prosecuted them between 1999 and 2015 for false accounting or theft.
In December 2022, government announced an Independent Advisory Board to guide ministers on the scheme chaired by Professor Chris Hodges. Members of the advisory board include Lord Arbuthnot, Kevan Jones MP and Professor Richard Moorhead.
Professor Chris Hodges, Chair of Independent Advisory Board, said:
The advisory board welcomes the creation of this GLO compensation scheme. Whilst compensation cannot truly deal with the injustices faced by the victims of the post office scandal, we do believe it can help. Critical to that is a process independent of the post office, fair in its handling of the issues and evidence, and as speedy as possible.
Today’s announcement comes following significant progress on compensation for other postmasters affected by the Horizon scandal.
On the Overturned Historical Convictions Compensation, as of Tuesday 7 March, Post Office has paid out over £17.5 million in compensation to those with overturned historical convictions. 79 of the 84 postmasters and former postmasters with overturned historical convictions had received interim payments, totalling over £10.2 million.
On the Historical Shortfall Scheme, as of Friday 3 March, 96% of eligible claimants to the Historical Shortfall Scheme have now received offers of compensation, totalling £82.9 million. Post Office are working to issue offers to remaining claimants as soon as possible.
