- the postmasters who were the first to take legal action
against the Post Office over Horizon to receive £19.5 million in
interim compensation
- postmasters will be able to claim reasonable legal fees as
part of participating in the final compensation scheme
- substantial progress on wider Horizon compensation as almost
two-thirds of eligible claimants to Historical Shortfall Scheme
have now received offers
Ministers are to provide a £19.5 million interim compensation
package to the postmasters who played a crucial role exposing the
Horizon 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 2019, a number of 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
swallowed 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 other affected postmasters.
The government confirmed in
March that it would create a new scheme to ensure the group
does not lose out, and today’s interim payment will provide
support while this scheme is finalised.
Postmasters in the Group Litigation Order (GLO) group will be contacted by
Freeths – the firm that represented them during that action –
very shortly with application details and will receive payment,
once their application has been processed, within a few weeks.
Postal Affairs Minister said:
These postmasters and their families have shown immense courage
in the face of terrible circumstances.
I hope this initial step provides some comfort to these
pioneering postmasters while reaffirming our commitment to
ensuring they receive their fair share in compensation.
The government is appointing Freeths to provide expertise and
support for the interim payments. This is due to the unique
knowledge held by Freeths regarding the distribution methodology
of the 2019 settlement.
The government has also confirmed that members of the
GLO group will be
able to claim reasonable legal fees as part of participating in
the compensation scheme.
Today’s announcement comes following substantial progress on
compensation for other postmasters affected by the Horizon
scandal.
As of 23 June, 1,550 (65% of) eligible claimants to the
HSS have now
received an offer.
Minister Scully has set the Post Office the ambition to make 100%
of HSSoffers by
the end of 2022.
As of 27 June, 73 postmasters who had their Horizon-related
convictions overturned have applied for an interim compensation
payment. A total of 67 payments have been made, with a total
of nearly £7 million paid out to postmasters in compensation so
far.
The Post Office continues to work at pace with postmasters’
representatives on final compensation for those with overturned
convictions.
