IS £600,000 EQUAL TO THE LOSS IN HORIZON VICTIMS’ LIVES?
The Government has now offered £600,000 in compensation to postmasters who have had their wrongful convictions overturned.
More than 700 postmasters received convictions for false accounting and theft. To date, the convictions of 86 former postmasters have been overturned. That number is expected to rise as more go through the courts.
So far, more than £21 million has been paid out as compensation to those whose convictions relied on the faulty Horizon software. This is in return for them settling their claims.
Those that have already received initial compensation payments or have settled their claim for less than £600,000 will have their compensation brought up to this level.
The government said the offer aimed to “bring a resolution to the scandal” but many victims have said it’s not enough, some going so far as to call it an insult.
This follows Post Office Chief Exec, Nick Read, being forced to return the £54,000 bonus he received for his participation in the Horizon enquiry.
An inquiry is ongoing in to the Horizon scandal. The Inquiry has criticised Post Office security for withholding evidence from people is suspected of theft. The Post Office has denied taking a ‘hands-off’ approach to disclosure after giving ‘broad, general authority’ to its professional advisors. It has been suggested that this relaxed approach is what allowed the scandal to arise in the first place.
The inquiry is expected to conclude in 2024.
This article does not constitute legal advice. If you need any help or further information in relation to the Post Office Horizon Scandal please contact us on 0113 266 0735 or at info@bailoransolicitors.com to speak to one of our legal experts.
Article at 28th February 2023
This article discusses the Post Office Horizon Scandal. For over 20 years, the Post Office has relied on Horizon accounting software to handle transactions, accounting, and stocktaking. Faults in this software meant that there appeared to be shortfalls in branches’ accounts.
More than 700 Post Office branch managers received criminal convictions as a result of the faulty accounting software. Some were sent to prison as a result of their convictions. Further, the Post Office demanded that postmasters cover the shortfalls using their own personal funds. This put intense financial and personal stress on postmasters and their families.
It has been referred to as the most widespread miscarriage of justice in UK history.
Legal Action
In 2019, 555 postmasters successfully took legal action against the Post Office over Horizon and recovered £43 million in compensation plus their legal costs. These postmasters were ineligible for the later developed Historical Shortfall Scheme. However, the Department for Business, Energy and Industrial Strategy are providing a separate funding scheme to ensure they receive the compensation they deserve based on their individual circumstances. 2
Historical Shortfall Scheme
Following this outcome, postmasters were able to apply to the Historical Shortfall Scheme to receive compensation for any losses they have incurred because of the fault with Horizon.
As of 6 February 2023, the total value of settlement offers made equals £75.2million and the total amount paid to applicants to date equals £53.9million. 155 eligible claims are still awaiting an offer, so these figures are set to rise.
Late Applications
Applications for this scheme closed on 27 November 2020. This Scheme and application process coincided with the Covid-19 Pandemic which meant a lot of postmasters missed the opportunity to apply.
The Post Office are accepting late applications in appreciation that many people will have been unable to apply for the Scheme while it was open in 2020.
Unfortunately, the Post Office will not provide any funds towards seeking legal advice when making a late application. However, they have explained applicants are welcome to do so at their own expense. 3
Negotiating Offers Made
As of 6 February 2023, 2,263 settlement offers have been sent. More are due to be provided to applicants. Although these offers appear substantial, they may not completely take all circumstances and consequential loss into account. 243 claims are going through dispute resolution over the offers made. 4
How we can help
By seeking legal advice, we are able to provide you with a clear explanation of your options. Providing you with a deeper understanding of the offer being made to you, we aim to place you in a better position than you were in before seeking our advice.
We can assist:
- Explaining, in non-legal terms, the offer being made
- Help you understand your options moving forward
- Negotiate your offer if you feel it is not satisfactory
Funding
The Post Office contributes to the costs of obtaining legal advice regarding an offer once it has been made. 5
As such, seeking initial legal advice on any offers made to you does not carry any risks or adverse cost to you. Where you wish to instruct us past the provision of initial advice, we can look to negotiate a larger contribution toward your legal costs.
Get in touch
This article does not constitute legal advice. If you need any help or further information in relation to the Post Office Horizon Scandal please contact us on 0113 266 0735 or at jf@bailoransolicitors.com to speak to one of our legal experts.
Footnotes
[*2] ‘Compensation scheme for postmasters who helped expose Post Office Horizon scandal unveiled by Business Secretary’ (GOV.UK, 7 December 2022) https://www.gov.uk/government/news/compensation-scheme-for-postmasters-who-helped-expose-post-office-horizon-scandal-unveiled-by-business-secretary
[*3] ‘The Historical Shortfall Scheme’ (Post Office One Online, 20 January 2023) https://www.onepostoffice.co.uk/secure/the-historical-shortfall-scheme
[*4] ‘Historical Shortfall Scheme: Information on Progress’ (Post Office Corporate, 10 January 2023) https://corporate.postoffice.co.uk/en/historical-matters/historical-matters-progress/historical-shortfall-scheme-information-on-progress/
[*5] ‘The Historical Shortfall Scheme’ https://www.onepostoffice.co.uk/secure/the-historical-shortfall-scheme