The government has launched a funding scheme to ensure the postmasters who were the first to take legal action against the Post Office over the failings of its Horizon IT computer system will be compensated “fully and fairly”.
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 the company that 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 that was set up by the Post Office to compensate postmasters who had to personally cover shortfalls in their branch’s accounts caused by Horizon.
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, added: “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.”
More details of the new scheme, including how postmasters can submit compensation claims, will be set out by the Department for Business, Energy & Industrial Strategy in due course.
