Compensation Scheme For Postmasters Who Helped Expose Post Office Horizon Scandal Unveiled By Business Secretary

7th December 2022

New compensation scheme unveiled for postmasters who were first to take legal action against Post Office over the Horizon IT scandal
delivered by government and overseen by an independent advisory board, the scheme will enable these postmasters to claim reasonable legal fees
Business Secretary Grant Shapps: "Today's compensation scheme will ensure that these trailblazing postmasters who did so much to uncover this injustice receive the compensation they deserve."
Postmasters who played a key role in exposing the Post Office Horizon IT scandal from the 1990s will be able to access the compensation they deserve, thanks to a new funding scheme unveiled by Business Secretary Grant Shapps today (7 December).

In 2019, 555 postmasters who had taken the first legal action against the Post Office over Horizon received £43 million plus legal costs in a settlement. However, much of this money was taken up by the associated costs of funding their case, and they were ineligible for the Historical Shortfall Scheme (HSS) that was subsequently set up to compensate others who were affected by the failure.

Recognising the unique position of these postmasters in the Group Litigation Order (GLO) group, today's compensation scheme will enable them to receive similar compensation to their peers. From today, claimants are being asked to start preparing their compensation claims ahead of submitting their application next year. The Business Secretary has also confirmed that the government will pay £900 per claimant as part of reasonable legal fees to prepare their claim.

Business Secretary Grant Shapps said:

I am acutely aware of the pain and suffering that these postmasters and their families have been through as part of the Horizon IT scandal. As Business Secretary I will always stand by them.

Today's compensation scheme will ensure these trailblazing postmasters who did so much to uncover this injustice receive the compensation they deserve.

Following extensive consultation by government with postmasters, the scheme will be delivered directly by the Department for Business, Energy and Industrial Strategy (BEIS), with independent claims facilitators following an alternative dispute resolution model - meaning cases can be settled between parties without the need to go to court.

To ensure the scheme works effectively, the government is setting up an independent advisory board of respected parliamentarians and academics, including Kevan Jones MP and Lord Arbuthnot who has tirelessly campaigned for wronged postmasters.

While BEIS has been working at pace to finalise today's scheme, GLO postmasters have been able to access a £19.5 million interim compensation package which the government announced in June 2022.

Today's announcement comes following significant progress on compensation for other postmasters affected by the Horizon scandal.

On the Overturned Historical Convictions Compensation, as of 1 December 2022, Post Office has paid out over £12 million in compensation to those with overturned historical convictions.

On the Historical Shortfall Scheme, as of 30 November 2022, 93% of eligible claimants to the Historical Shortfall Scheme have now received offers of compensation.

Earlier Articles on this story
The Insolvency Service is seeking information from postmasters who believe they may have been made bankrupt due to the Horizon IT system.

Information for former bankrupts
Historical Shortfall Scheme
The Insolvency Service has been working closely with the Post Office in relation to the complex claims submitted by former bankrupts to the Historical Shortfall Scheme.

If you were previously subject to a bankruptcy order and claimed under the Historical Shortfall Scheme, you will shortly receive offers of compensation from the Post Office's independent advisory panel.

On receipt of this offer, a representative of the Official Receiver will contact you to discuss the compensation offers.

Group Litigation Order - Interim payments
Where the Official Receiver is trustee in bankruptcy, a representative of the Official Receiver will shortly contact you to discuss the interim payments due under the Group Litigation Order.

Any queries should be directed to Horizon.Cases@insolvency.gov.uk.

The Court of Appeal and Crown Court have quashed the convictions of a number of former postmasters who were prosecuted using evidence from Post Office's Horizon IT system, which is now known to have been unreliable.

The Post Office has contacted postmasters it has previously prosecuted to assist them in potentially appealing their convictions, should they wish.

We are also aware that in some instances, postmasters were made bankrupt by the Post Office Limited, which have may have been as a result of the financial discrepancies reported, incorrectly, by the Horizon IT system.

Furthermore, due to the financial impact of the situation, some postmasters may have petitioned for their own bankruptcy or made a bankruptcy application to Office of the Adjudicator.

The Official Receiver, acting as the Trustee/Trustee ex-officio in bankruptcy, is now undertaking enquiries to identify these cases, in order to investigate whether these bankruptcy orders should be reviewed.

If you have been subject to a bankruptcy / adjudicator or sequestration order since 2000, resided in England, Wales, Scotland or Northern Ireland, and believe you were impacted by the Horizon discrepancies, please contact the Insolvency Service via Horizoncases@insolvency.gov.uk.

Please ensure you provide the following information:

full name;
date of birth;
contact details;
court / bankruptcy reference number relating to your bankruptcy (if available);
where your bankruptcy / adjudicator or sequestration order was made, i.e. England/Wales, Scotland or Northern Ireland; and
a brief overview of how you were affected.
Please note if an Insolvency Practitioner has been appointed as your Trustee in bankruptcy or you were subject to an Individual Voluntary Arrangement (IVA) then please direct any queries to the Insolvency Practitioner appointed.

If you are currently subject to a Debt Relief Order and within the 12-month moratorium period, please contact the Official Receiver dealing with your case.

If you were subject to a bankruptcy / sequestration order in Scotland or Northern Ireland, we will forward your details to the appropriate bodies in Scotland and Northern Ireland.

If you have previously contacted us on this matter via the inbox referenced above, please note we are currently working through the enquiries received and you will receive a response in due course.

Source
Insolvency Service Newsletter 12 May 2023
https://www.gov.uk/government/news/insolvency-service-newsletter-spring-2023

Background information
The Post Office Horizon scandal, which began over 20 years ago, has had a devastating impact on the lives of many postmasters. Starting in the late 1990s, the Post Office began installing Horizon accounting software, but faults in the software led to shortfalls in branches' accounts. The Post Office demanded sub-postmasters cover the shortfalls, and in many cases wrongfully prosecuted them between 1999 and 2015 for false accounting or theft.

Post Office Scandal Reveals A Hidden World Of Outsourced Information Technology The Government Trusts But Does Not Understand

This is one of the biggest scandals ever in British criminal history. This scandal had more yet to unfold as many more postmasters were accused and lost their livelihoods, businesses and worse being made bankrupt and losing their home not to mention the ones that went to prison. They were innocent and many others from Post Office management and Fujitsu should be in the dock.

Read more details in the Private Eye report