Post Office scandal victims to get access to new compensation scheme

A new scheme offering settlements of £600,000 to victims of the Post Office scandal has been unveiled by the government.

Ministers said it would help sub-postmasters traumatised by the scandal, in which faulty IT software called Horizon led hundreds of staff to be falsely accused of stealing from branches, receive financial support without “unnecessary bureaucracy”.

The Horizon Convictions Redress Scheme (HCRS) is the fourth scheme of its kind.

It is aimed at sub-postmasters whose convictions were not quashed by the courts but have now been automatically overturned by the previous government’s recent Post Office Offences Act.

Under its terms, those affected can either receive a fixed settlement of £600,000 or apply for a potentially higher amount by undergoing a detailed assessment of their case by the Department for Business and Trade, which will include a guaranteed minimum payout of £450,000.

Officials believe there are roughly 900 sub-postmasters who could be eligible. Letters have already been sent out to some of them, with more being dispatched throughout the summer.

The Ministry of Justice has also committed to paying “all reasonable legal fees” for victims seeking advice on how to apply for a settlement.

It comes as the government attempts to strike a more conciliatory tone, including by using the word “redress” – rather than “compensation” – when referring to victims’ payouts.

‘Very significant claims’

Solicitor Neil Hudgell, whose firm has represented many scandal victims, said: “I warmly welcome the launch of the new scheme and we have more than 170 exonerated postal workers already signed up today for us to assist them with their claims as the scheme opens for business.”

He added there would be some people who would have “very significant claims” in excess of £600,000.

More than 2,800 sub-postmasters, including many who were not convicted of any crimes but were suspected of wrongdoing, have already received payouts.

However, there are concerns many are still yet to come forward.

Chris Head, a former sub-postmaster and justice campaigner, said the latest announcement was a “welcome move” but expressed worry that officials may not have sufficient records to contact all those who are eligible.

He told Sky News: “This is a huge concern as people find it distressing to come forward for many different reasons. They are afraid, as they have been let down by people in authority over the years.”

Mr Head added some people may not realise they are entitled to a settlement unless they were sent a letter.

A total of £1bn has been set aside to fund compensation for victims of the scandal.

Business Secretary Jonathan Reynolds said: “Postmasters have suffered immeasurably so I hope today’s new redress scheme brings some relief to postmasters who have waited far too long to get back the money that is rightfully theirs.”

Justice Secretary Shabana Mahmood, added: “Justice must be a reality, not an ideal. Today we begin putting this into practice by overturning the convictions of the innocent postmasters affected by this inexplicable and unprecedented miscarriage of justice.”