Post Office Horizon IT scandal: Why the latest compensation offer is simply inadequate: Greg Wright

The Post Office Horizon IT scandal has been described as one of the biggest miscarriages of justice in British history. Between 2000 and 2014, more than 700 subpostmasters were prosecuted based on information from the Horizon IT accounting system, which saw workers wrongly accused of theft, fraud and false accounting. A number were jailed. However, in December 2019 a High Court judge ruled that 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. Since then many subpostmasters have had criminal convictions overturned.

Some observers might have welcomed the Government’s announcement that postmasters who were wrongfully convicted due to this scandal will be offered £600,000 to settle their claims. Business minister Kevin Hollinrake said those affected had suffered “for too long” and so should be able to settle their claims “swiftly if they wish”. The offer will be optional, the Government said, with those affected able to continue with the current compensation process if they choose. The Post Office chief executive Nick Read said the Post Office is making “good progress” to pay compensation to those affected as quickly as possible and he welcomed the news that Government has found a way to provide the option of concluding settlements through their upfront offer. The Government said 86 convictions have been overturned and £21m has been paid in compensation.

However, the inconvenient truth for the Government is that many victims believe this settlement offer is simply inadequate. Solicitor Neil Hudgell, of Hudgell Solicitors, who represents 70 former subpostmasters who are seeking compensation from the Post Office after having convictions relating to the scandal overturned, said in many cases the offer is “nowhere near enough”.

He said: “Having spent many months negotiating with the Post Office and the Government as to what would represent fair and full compensation for former subpostmasters who have had convictions overturned, we are somewhat surprised by this sudden announcement. The Government has said these offers are optional, but my fear is that, due to the delays we have already faced, and the particular circumstances many subpostmasters face, some may feel pressured to accept this offer even though their claims are worth much more. In isolation £600,000 may sound like a lot of money, and it is, but in many cases it is nowhere near enough to represent what has been lost over the last two decades.”

Mr Read is due to meet postmasters affected by the scandal in Leeds next month as part of what the Post Office describes as “the healing journey and remediation process”. He must be prepared to face a tongue-lashing.

Greg Wright is the deputy business editor of The Yorkshire Post