Government must take hard line with unapproved Post Office bonuses linked to Horizon IT scandal inquiry - Greg Wright

At a time when millions of people are struggling to feed and clothe their families, the Government must take a tough line with a corporate bonus culture which seems eager to reward failure.
By Greg Wright
Published 31st May 2023, 12:05 BST
Updated 31st May 2023, 12:05 BST

It was heartening to witness Business Minister Kevin Hollinrake’s robust response to the latest twist in one of the biggest scandals of modern times. The Post Office is facing an investigation after its chief executive and other senior officers were paid unapproved bonuses relating to the Horizon IT inquiry.

Mr Hollinrake described the payments as “extremely concerning and deeply regrettable” as he announced an independent review of the governance around Post Office decisions on remuneration. He also demanded an explanation from the Post Office as to how the mistake occurred.

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Letters between the Post Office and Horizon IT Inquiry representatives revealed that “remunerations” were awarded for the executives succeeding in supplying “all required evidence and information on time”.

Library image of protestors outside the Post Office Horizon IT inquiry at the International Dispute Resolution Centre, London. Picture: PALibrary image of protestors outside the Post Office Horizon IT inquiry at the International Dispute Resolution Centre, London. Picture: PA
Library image of protestors outside the Post Office Horizon IT inquiry at the International Dispute Resolution Centre, London. Picture: PA

The Post Office Horizon scandal, which has been described as the most widespread miscarriage of justice in UK history, saw hundreds of innocent postmasters convicted.

The Post Office began installing Horizon accounting software in the 1990s, but faults in the software led to shortfalls in accounts, which sparked demands on sub-postmasters to cover the difference. Many were wrongfully prosecuted between 1999 and 2015 for false accounting, theft and fraud.

However, in 2019, a High Court judge ruled the system contained a number of “bugs, errors and defects” and there was a “material risk” that shortfalls in Post Office branch accounts were in fact caused by it. Many sub-postmasters have subsequently had their criminal convictions overturned.

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With regards to the controversy over bonuses, Mr Hollinrake told the House: “This is a very serious issue, particularly considering it comes at a time when it is essential that the public should have confidence that the culture and processes at the Post Office have been improved.”

A spokesperson for the Post Office apologised unreservedly for the inappropriate metric used and mistakes made related to its 2021-22 remuneration scheme for the transformation of the business.

The spokesman added: “Executive pay is the responsibility of the remuneration committee and a review by the new chair of Post Office’s remuneration committee has been submitted to the Postal Affairs Minister within the timeframe requested by the Minister. A wider independent Government review has also been announced. Post Office fully supports these reviews and believes it is important that the remuneration committee’s investigation completes before it comments further.”

The revelations surrounding these unapproved bonuses just adds to the distress facing everyone affected by this appalling scandal. To quote shadow business minister Seema Malhotra: “Just when you think we’ve reached a new low in the ongoing saga that is the Horizon Post Office scandal, a new low is reached.”

Greg Wright is the deputy business editor of The Yorkshire Post

Related topics:Post OfficeKevin HollinrakeGreg WrightGovernment