- New compensation scheme unveiled for postmasters who were first to take legal action against Post Office over the Horizon IT scandal
- delivered by government and overseen by an independent advisory board, the scheme will enable these postmasters to claim reasonable legal fees
- Business Secretary Grant Shapps: "Today's compensation scheme will ensure that these trailblazing postmasters who did so much to uncover this injustice receive the compensation they deserve."
Postmasters who played a key role in exposing the Post Office Horizon IT scandal from the 1990s will be able to access the compensation they deserve, thanks to a new funding scheme unveiled by Business Secretary Grant Shapps today (7 December).
In 2019, 555 postmasters who had taken the first legal action against the Post Office over Horizon received £43 million plus legal costs in a settlement. However, much of this money was taken up by the associated costs of funding their case, and they were ineligible for the Historical Shortfall Scheme (HSS) that was subsequently set up to compensate others who were affected by the failure.
Recognising the unique position of these postmasters in the Group Litigation Order (GLO) group, today's compensation scheme will enable them to receive similar compensation to their peers. From today, claimants are being asked to start preparing their compensation claims ahead of submitting their application next year. The Business Secretary has also confirmed that the government will pay £900 per claimant as part of reasonable legal fees to prepare their claim.
Business Secretary Grant Shapps said:
I am acutely aware of the pain and suffering that these postmasters and their families have been through as part of the Horizon IT scandal. As Business Secretary I will always stand by them.
Today's compensation scheme will ensure these trailblazing postmasters who did so much to uncover this injustice receive the compensation they deserve.
Following extensive consultation by government with postmasters, the scheme will be delivered directly by the Department for Business, Energy and Industrial Strategy (BEIS), with independent claims facilitators following an alternative dispute resolution model - meaning cases can be settled between parties without the need to go to court.
To ensure the scheme works effectively, the government is setting up an independent advisory board of respected parliamentarians and academics, including Kevan Jones MP and Lord Arbuthnot who has tirelessly campaigned for wronged postmasters.
While BEIS has been working at pace to finalise today's scheme, GLO postmasters have been able to access a £19.5 million interim compensation package which the government announced in June 2022.
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 1 December 2022, Post Office has paid out over £12 million in compensation to those with overturned historical convictions.
On the Historical Shortfall Scheme, as of 30 November 2022, 93% of eligible claimants to the Historical Shortfall Scheme have now received offers of compensation.
Notes
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.
Details of the compensation scheme process will be available here shortly.
