A new funding scheme to offer fair compensation to the postmasters who played a crucial role in uncovering the Post Office Horizon IT scandal has been announced by the Chancellor.
Rishi Sunak said a new compensation scheme would be set up in the coming months targeted at the postmasters who brought and won the landmark High Court case against the Post Office over the failings. The 2019 ruling paved the way for millions of pounds worth of future pay-outs and led to the Court of Appeal quashing the convictions of postmasters who were wrongly accused of committing crimes.
Despite winning nearly £43m in compensation in 2019, the group was left financially disadvantaged after having to pay significant legal costs based on a “no win, no fee” agreement with Therium – the company which funded its litigation. Due to the terms of their legal agreement each postmaster received a small fraction of the settlement – equating to around £20,000 each.
Their action meant they were also ineligible to apply to the Historical Shortfall Scheme set up to by the Post Office following the scandal to compensate postmasters who had to personally cover shortfalls in their branch’s accounts caused by the Horizon IT.
The new scheme will ensure that those who uncovered the injustice receive the same level of compensation as the postmasters who claimed through the HSS.
Chancellor of the Exchequer Rishi Sunak said: “The Horizon IT dispute has had a devastating impact on postmasters and their families, with many losing their livelihoods or being wrongly convicted for crimes they didn’t commit.
“Without the efforts of these postmasters, this terrible injustice may have never been uncovered so it is only right that they are compensated fully and fairly.
“That is why we have set up this new compensation scheme for those who played a crucial role bringing this scandal to light, which I hope provides a measure of comfort.
Postal Affairs Minister Paul Scully said: “The pain and distress that the Horizon scandal has inflicted on hundreds of postmasters over the years cannot be overstated.
“Without the efforts of the 555 pioneering postmasters who brought this to court, this injustice may never have seen the light of day nor would the statutory inquiry have been set up, which is why I made it my priority to ensure they are all fairly compensated.
“While we can’t right the wrongs of the past, I hope this important compensation package is a turning of the page, as we continue working with the Post Office to ensure something like this can never happen again.”
The scheme comes after the government announced a separate scheme last year to provide funding for full and final settlements for eligible postmasters who have had their Horizon-related conviction overturned, with those eligible to receive an interim payment of up to £100,000 each.
The Department for Business, Energy & Industrial Strategy has promised to set out details of the new scheme, including how postmasters can submit compensation claims, in due course.
