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Postmasters to Receive Unlimited Compensation After Horizon Scandal

postmasters to receive unlimited compensation after horizon scandal business manchester

The Horizon IT system scandal has left a significant mark on the UK’s history of justice. Between 1999 and 2015, hundreds of postmasters were convicted based on erroneous data from this flawed system developed by Fujitsu.

These false allegations led to financial and personal ruin for nearly 900 branch owners. However, new legislation and a compensation scheme aim to address these past wrongs by providing unlimited financial redress to those affected.

The Horizon IT Scandal Unveiled

Hundreds of postmasters were wrongfully prosecuted between 1999 and 2015, due to faults with the Horizon IT system developed by Fujitsu. The false data from this system indicated crimes like fraud, false accounting, and theft, leading to convictions of innocent people.

Nearly 900 branch owners were affected, facing various degrees of financial and personal ruin. The scandal is considered one of the most significant miscarriages of justice in the UK’s history. An ITV drama, “Mr Bates vs the Post Office,” has increased public awareness of this issue.

New Legislation and Compensation Scheme

The government introduced new legislation to quash these wrongful convictions and initiated a compensation scheme on Tuesday. This effort aims to provide financial redress to those affected.

Under this scheme, each of the approximately 900 eligible postmasters will receive a minimum of £600,000. However, there is no upper limit on the compensation, making it potentially unlimited for the most severely affected individuals.

The Treasury has earmarked a £1 billion fund to support this compensation scheme. The Ministry of Justice will manage the application process, notifying those affected through a series of letters.

Application Paths for Compensation

There are two main application paths within the scheme. The fast-track process allows for a quick resolution with a “full and final” £600,000 compensation package, requiring only an ID check.

The second option involves a more in-depth claim process, which does not have a cap on the compensation amount. This approach is for those who wish to detail their experiences more thoroughly.

Regardless of the approach chosen, applicants will receive an initial £200,000 payment while their claim is processed. Those opting for the detailed process will also get an additional £450,000 early payment.

Legal Battles and Court Rulings

Since uncovering the scandal, 110 postmasters have had their convictions overturned in the Court of Appeal. Most of these cases were prosecuted directly by the Post Office.

Approximately 48 of the 110 individuals have fully resolved their claims, amounting to over £31 million in compensation.

An extra 3,000 victims, who faced bankruptcy or had to repay money, are expected to claim over £150 million. This reflects the immense impact the faulty IT system had on people’s lives.

Voices from the Community

Alan Bates, a long-time campaigner for justice and a former sub-postmaster, welcomed the announcement. “It’s about time, this was the decent thing to do,” he said.

The campaign and subsequent ITV drama have brought much-needed attention to the plight of these postmasters. Public sentiment has largely been sympathetic, with many calling for further accountability from the Post Office and Fujitsu.

The broader public is now more aware of the deep injustices suffered by these individuals. This scandal highlights the potential for large institutions to cause harm when errors or malpractices go unchecked.

Future Implications

The compensation scheme marks a significant step in addressing past wrongs, but many argue that further actions are needed to ensure justice.

Other victims, who may not have been contacted directly, are still encouraged to come forward and apply for compensation. This process will likely bring more cases to light.

The Post Office and the government have pledged to continue reviewing and refining the compensation process, ensuring it meets the needs of all affected individuals.

Conclusion

The unlimited compensation scheme is a long-awaited relief for wrongfully convicted postmasters. It provides a measure of justice and financial redress for years of suffering and loss.


The unlimited compensation scheme marks a monumental step towards justice for the wrongfully convicted postmasters. After years of undue suffering and financial loss, they will finally receive the redress they deserve. This initiative is a move towards righting one of the most significant legal wrongs in UK history.

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