In recent years, the Post Office scandal has become one of the most notorious cases of injustice in the U.K. Sub-postmasters were wrongly accused of financial misconduct due to flaws in the Post Office’s Horizon IT system. Many people were convicted of crimes they did not commit, while others suffered serious financial losses. To remedy these wrongs, the U.K. government has implemented a number of compensation schemes. Here is a clear description of how these schemes work and who is eligible for them.
The four main compensation schemes
The compensation process is not straightforward and involves a number of schemes, each targeting different groups affected by the scandal. The main schemes are:
Group prosecution order (GLO) scheme
Reversed conviction scheme
Horizon conviction redress scheme
Horizon reduction scheme
- Group prosecution order (GLO) scheme
This scheme is specifically for people who are involved in a historic group prosecution order. In 2019, Alan Bates and a group of 555 sub-postmasters received a £42.5 million settlement following a long battle in the High Court against the Post Office. The settlement was intended to compensate them for their losses and the impact of the scandal.
For people who were convicted due to the faulty Horizon system and had their convictions overturned, the Overturned Convictions Scheme provides financial redress. The scheme applies to individuals whose convictions were quashed by the court. As of August 31, 2024, 111 people’s convictions have been overturned, and £56 million has been paid to 57 of these claimants.
Claimants can either accept an instant payment of £600,000 or negotiate for a higher amount. Interim payments are also provided while their final settlement is being processed.
- Horizon Conviction Redress Scheme
This scheme is specifically for people whose convictions have been overturned under the Post Office (Horizon System) Offences Act 2024, which was enacted in May. Those who qualify for the scheme receive an initial interim payment of £200,000. They then have the option of either accepting the full settlement of £600,000 or having their case reviewed for a potentially higher amount.
- Horizon Shortfall Scheme
The Horizon Shortfall Scheme is designed for sub-postmasters who were not convicted but had to make up a financial shortfall caused by Horizon IT systems. The scheme is managed by the Post Office, but an independent appeals process overseen by the Department for Business handles disputes. As of the end of August 2024, over £144 million has been paid out through the scheme, benefiting over 2,000 claimants.
Resolving new claims and delayed compensation
The total number of eligible claimants across all schemes is over 4,000, and new potential victims are constantly coming forward. However, navigating these schemes can be complex and time-consuming, often taking several years to resolve.
Families of individuals who die before receiving compensation can apply for payments on their behalf. This measure ensures that those affected by the scam, even posthumously, can still receive financial redress.
Compensation impact
As of August 30, 2024, almost £289 million has been paid to more than 2,800 claimants. This figure includes payments received from all four schemes and includes compensation amounts ranging from £10,000 to £1 million, depending on the individual circumstances of each case.
The Government has not yet provided an overall estimate of the total compensation required, but it is clear that the final figure will likely be substantial.
Conclusion
The Post Office scam has left a trail of financial and emotional distress for many sub-postmasters. While the various compensation schemes are important steps towards correcting these wrongs, the process remains complex and often slow. Government efforts to improve the situation continue, with new schemes and adjustments being made to better serve those affected.