Post Office scandal: Wrongly convicted postmasters face “clear and real risk” of compensation delays

Hundreds of victims of the Post Office scandal face serious delays to their compensation because of shortcomings in government plans, the head of the public inquiry into the injustice has said.

Between 2000 and 2014, more than 700 Post Office managers were given criminal convictions when a faulty accounting software, called Horizon, made it look as though money was missing from their sites. Several people went to prison after being convicted for false accounting and theft, many others had both their finances and reputations ruined by the IT error, and some victims have died before receiving their compensation.

In 2021, the Court of Appeal overturned 83 people’s criminal convictions in a group litigation case. However, most victims used the compensation awarded to cover their legal costs - prompting the government to launch a third scheme to compensate these individuals in March.

There is currently a public inquiry into the scandal, led by Sir Wyn Williams, which is seeking to examine the treatment of thousands of postmasters, establish who was to blame for the wrongful prosecutions, and understand why nothing was done to prevent them. In an interim report on Monday (17 July), Sir Wyn warned there was a “clear and real risk” deadlines to give compensation to victims would be missed.

He explained that there were issues with the ways the compensation scheme has been set up - calling it a “patchwork quilt with some holes in it” - and insisted ministers address the issue of past claimants being taxed heavily on their lump sum awards. The inquiry chair also urged the government and Post Office to provide “prompt”, “full”, and “fair” compensation - saying there is “no valid legal reason” why they should not “make good on their promises”.

But the Post Office chief executive, Nick Read, told the BBC the “sheer scale” of the miscarriage of justice had “gone above and beyond anything that anybody could realistically expect”, meaning things were not proceeding as quickly as hoped. He rejected claims that the Post Office was deliberately delaying proceedings, but added: “It really is a huge apology from the Post Office. We are all in this together and we are all on the same side.”

Also speaking to the BBC, Sue Palmer, a victim of the scandal who was found not guilty after a trial, told the broadcaster that the allegations had “ruined her life”. She explained: “I was made homeless, I now live in a one-bedroom studio flat (because of the financial impact).”

Similarly, Shazia Saddiq, who used to run three Post Offices in Newcastle upon Tyne, told the BBC she had “lost everything” as a result of being accused of the crimes a decade ago - including her home above one branch.

She did not face criminal prosecution, but suffered abuse from people in the area. After being assaulted with flour in the street, Ms Saddiq fled the area with her two young children overnight. “They left their friends behind, they had to change schools,” she said.

Responding to the report, the Post Office said that compensating the postmasters “remains a priority”, while Post Office minister Kevin Hollinrake said the government would review the report and respond in due course. Hearings for the inquiry will resume later in July.