Approximately 900 Post Office branch owners will obtain financial redress of at least £600,000 each, following legislation that quashed their wrongful convictions earlier this year. The UK government has confirmed that there is no upper limit to the compensation available for sub-postmasters impacted by this scandal.
The Treasury has allocated a £1 billion fund to compensate postmasters, considered one of the most significant miscarriages of justice in the UK. Between 1999 and 2015, numerous postmasters were wrongfully convicted of crimes like fraud, false accounting, and theft due to flaws in the Horizon IT system, developed by Fujitsu. This system erroneously showed discrepancies in branch accounts, leading to severe consequences for those accused.
Since uncovering the scandal, the Court of Appeal has overturned the convictions of 110 postmasters, with the Post Office acting as the prosecutor in nearly all the cases. Many victims faced jail sentences and financial ruin, with some not exonerated until the enactment of new legislation in May. This legislation, first announced by then Prime Minister Rishi Sunak in January, followed increased scrutiny from the ITV drama Mr Bates vs the Post Office. Alan Bates, a sub-postmaster and long-time campaigner for justice, welcomed the compensation scheme, stating: “It’s about time, this was the decent thing to do.”
The Post Office (Horizon System) Offences Bill, which came into effect in May, automatically quashed convictions for specific offences and was expedited after the general election was announced. The new compensation scheme, which launches on Tuesday, allows those with quashed convictions to apply through a government-administered process. The Ministry of Justice has identified those affected and will send out letters about the scheme, though others can still apply.
The scheme offers two application paths: a fast-track process for a ‘full and final’ £600,000 compensation package requiring only an ID check, and a more detailed process with no cap on payment amounts. This dual approach accommodates those who prefer not to revisit their experiences in depth. For the most severely affected, compensation could total millions of pounds. Applicants choosing the detailed process will initially receive £450,000, with further assessments to follow. All applicants will receive a preliminary £200,000 payment as claims are processed.
Despite the lack of a set deadline for final payouts, the Department for Business and Trade will manage the process. Provisions exist for claims on behalf of deceased or unwell sub-postmasters. Additionally, a separate compensation scheme is available for sub-postmasters who successfully won court appeals. Of the 110 individuals with quashed convictions, 48 have fully settled their claims, receiving over £31 million in compensation. Furthermore, around 3,000 individuals who were bankrupted or forced to repay money are expected to claim over £150 million in compensation.
This new compensation scheme represents a significant step towards justice for the postmasters wrongfully convicted due to the flawed Horizon IT system. With substantial financial provisions and no upper limit on claims, it seeks to address the extensive personal and financial damages suffered over the years.
