2 minute read
Post Office
by 55 North
Compensation for postmasters that helped uncover Horizon scandal confirmed
The £19.5m interim compensation package has been welcomed by the Post Office.
Government is to provide a £19.5m interim compensation package to the postmasters who played a crucial role in 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 £43m 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 that was subsequently set up to compensate other affected postmasters.
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 Paul Scully 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.”
A Post Office spokesperson said: “Ensuring full, fair and final compensation for all Horizon Scandal victims is a priority as we put right the wrongs of the past. Almost two thirds of postmasters in the Historical Shortfall Scheme have received compensation offers, the majority of which are already paid.
“We welcome the government taking action on final, equitable compensation for the postmasters who were part of the Group Litigation settlement and those whose Horizon-related convictions are overturned.”
