Hundreds of postmasters who were wrongfully convicted in the Horizon IT scandal will be offered £600,000 each to settle their outstanding legal claims.
The British government wholly owns Post Office Limited, the company which employed around 700 postmasters and sub-postmasters who were wrongly accused of fraud because of an error in the Horizon accounting software, made by Fujitsu.
Business Minister Kevin Hollinrake said the £600,000 offer was available to anyone who wanted to settle their claims “swiftly” and he said those affected had suffered “for too long.”
The Post Office began using Horizon in the late 1990s but, as a result of a software fault, it began showing shortfalls in various branches’ accounts.
Post Office managers jumped to the conclusion subpostmasters were to blame and between 1999 and 2015 more than 700 were wrongfully prosecuted and convicted of false accounting or theft.
An independent inquiry is ongoing into the Horizon scandal but already £120 million has been paid out to 2,600 individuals affected by means of the Overturned Convictions process and the Horizon Shortfall Scheme and Group Litigation Order.
The government said 86 convictions had so far been overturned and they said those who had already received initial compensation payments would get it topped up to £600,000.
Mr. Hollinrake, speaking in the House of Commons on Monday, said, “The government has decided that postmasters who have their convictions on the basis of Horizon evidence overturned should have the opportunity up front to accept an offer of a fixed sum in full and final settlement of their claim.”
He said: “The sum will be £600,000. It is not up to £600,000, it is £600,000. There will be no requirement for evidence to support the claim other than being able to demonstrate that the individual has an overturned conviction.”
Hollinrake: Government Wants to get This Right
He said the government wanted to make sure it “gets this right” and wanted to give aggrieved postmasters an, “optional, quick and straightforward route to settlement.”
But solicitor Neil Hudgell, whose firm represents 70 former subpostmasters who are seeking compensation, said the government’s offer was “nowhere near enough” in many cases.
He said: “We welcome any announcement that is in our clients’ best interests. Having spent many months negotiating with the Post Office and the government as to what would represent fair and full compensation for former subpostmasters who have had convictions overturned, we are somewhat surprised by this sudden announcement.”
Mr. Hudgell said many of his clients would see the government’s move as, “another example of the Post Office trying to control the narrative.”
He said: “The government has said these offers are optional, but my fear is that, due to the delays we have already faced, and the particular circumstances many subpostmasters face, some may feel pressured to accept this offer even though their claims are worth much more.”
“In isolation £600,000 may sound like a lot of money, and it is, but in many cases it is nowhere near enough to represent what has been lost over the last two decades,” he added.
Post Office Chief Executive Nick Read said: “Post Office is making good progress to pay compensation to those affected as quickly as possible and therefore welcomes the news that government has found a way to provide the option of concluding settlements through their upfront offer.”
“This will be an entirely voluntary choice and so claimants should obtain specific advice from their independent legal and professional representatives in considering whether it is suitable in their individual case,” added Mr. Read.
Last month Mr. Read agreed to return a bonus of £54,400 he received for the 2021-2022 financial year simply for co-operating with the Horizon inquiry.
