Hundreds of postmasters who were wrongfully prosecuted based on faulty information from the Horizon IT system will be entitled to unlimited compensation, as announced on Tuesday.
Approximately 900 Post Office branch owners will receive financial redress of at least £600,000 under a new scheme following legislation that quashed their convictions earlier this year. The government has confirmed there is no upper limit on the compensation available to sub-postmasters who apply.
The Treasury has allocated a £1 billion fund to compensate postmasters affected by the scandal, considered one of the UK’s worst miscarriages of justice, through various schemes.
Between 1999 and 2015, hundreds of postmasters were convicted of crimes such as fraud, false accounting, and theft after the Horizon system, developed by the Japanese IT company Fujitsu, falsely indicated that money was missing from branch accounts.
Since the scandal was uncovered, 110 postmasters have had their convictions quashed in the Court of Appeal, with the Post Office acting as prosecutor in all but 11 of these cases. Many victims, who faced jail sentences and financial ruin, were not exonerated until the new law was enacted in May.
The legislation was initially announced by Rishi Sunak, then Prime Minister, in January following increased scrutiny from the ITV drama Mr Bates vs the Post Office.
Alan Bates, a sub-postmaster who has campaigned for justice for 21 years, welcomed the announcement, stating: “It’s about time, this was the decent thing to do.”
The Post Office (Horizon System) Offences Bill, which automatically quashed convictions for certain offences when it came into force in May, was fast-tracked after the general election was announced.
Under the new scheme, launching on Tuesday, those whose convictions have been quashed can apply for compensation through a government-administered process. The Ministry of Justice has identified those affected and will send letters about the scheme. While 900 people are expected to be eligible, others can still apply if not contacted directly.
The scheme offers two application paths: a fast-track process providing a “full and final” £600,000 compensation package with only an ID check, and a more detailed claim process with no cap on the payment amount. This approach accommodates sub-postmasters who prefer not to revisit their experiences in depth.
Compensation is expected to reach millions for the most severely affected. Applicants opting for the in-depth process will receive an initial payment of £450,000, with further assessment to follow. Both application paths will include a preliminary payment of £200,000 as claims are processed. However, no deadline has been set for the final payouts, which will be managed by the Department for Business and Trade.
Provisions are also in place for claims on behalf of deceased or unwell sub-postmasters.
Sub-postmasters who have won court appeals are entitled to a separate compensation scheme. Of the 110 individuals who had their convictions overturned, 48 have fully settled their claims, amounting to over £31 million in compensation.
Additionally, another 3,000 victims who were bankrupted or forced to repay money are expected to claim more than £150 million in compensation.
