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Post Office scandal victim becomes first to receive £600,000 under new redress scheme

The compensation payment raises hopes that other wrongly convicted subpostmasters will receive payments far more quickly under new scheme

Bryan Glick
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Published: 19 Sep 2024 15:13

A new redress scheme for victims of the Post Office scandal that was launched by the Labour government in July has completed its first £600,000 payment to a former subpostmaster – just over one month after her application was submitted.

The payment is significant because the new plan, the Horizon Convictions Redress Scheme, is run by the Department for Business and Trade, with no involvement from the Post Office.

Many victims of the scandal have been waiting years for compensation payments under longstanding schemes run by, or dependent upon, the Post Office.

The successful application was made by a former Teesside subpostmistress who was prosecuted in 2003 over an unexplained shortfall of £7,000 in her branch accounts.

She was suspended and repaid the shortfall within a week after borrowing from family and friends – but was still convicted of theft in court.

She was forced to sell the shop that she and her husband ran alongside the Post Office, and move out of the area.

The woman has asked to remain anonymous.

Unprecedented legislation

In May, the government passed unprecedented legislation to overturn hundreds of convictions, which were based on evidence from the Post Office’s flawed Horizon IT system, opening the door to financial claims for the victims of miscarriages of justice.

The new government has committed at least £540m to the Horizon Convictions Redress Scheme. About 900 people are estimated to be eligible for at least £600,000, with many entitled to much higher payments. Average settlements for wrongly convicted victims of the scandal so far have been well over £600,000.

All eligible applicants will receive a £200,000 upfront interim payment. This will increase to £600,000 for those who decide to settle, while those who want to have their full losses and suffering assessed can continue to negotiate for higher payouts.

The former subpostmistress received her formal exoneration letter from the Ministry of Justice (MOJ) in August, confirming her conviction had been quashed. Working with Hudgell Solicitors, which represents many of the victims, she submitted her application for damages and received her payment just over a month later.

“Like all other former subpostmasters, I had no idea why the accounts didn’t balance and I got no help, and so I pleaded guilty and said I’d taken the money,” said the subpostmistress, who is now in her 60s. “I always thought because I’d said those words that I’d never see my name cleared.

“No matter what you do in life, and no matter how many happy times you have, a conviction against your name always casts a shadow over your life,” she said. “It impacted on my mental health and my husband’s, and I struggled to get jobs for years, and even lost some when employers discovered my criminal record.”

Applications submitted

Solicitor Neil Hudgell said his firm has submitted applications under the new scheme on behalf of over 180 former subpostmasters.

“We’re delighted to have secured the first payment under this new scheme. The process from beginning to end was completed in just over a month since the overturning of our client’s conviction was confirmed by a letter from the MOJ,” said Hudgell. “It’s proven to be a relatively straightforward process in cases where people decide that they are happy to take the £600,000 settlement being offered.

Hudgell added that each case has to be considered individually, but that many people have been willing to accept the £600,000 settlement offer, while others with more complex cases or who suffered greater loss and damages are seeking a full assessment.

“For many, this has been blighting their lives for decades and they may be elderly or perhaps not in the best of health. Understandably some are taking the view that it is better to take the offer now and have that money available to them to improve the quality of their lives,” he said.

Hundreds of former subpostmasters are yet to receive their exoneration letters. The government has encouraged them to come forward and take advantage of the new redress scheme.

“The letter confirming my conviction had been quashed came in a plain white envelope so I wasn’t expecting it to be it. When I opened it and read it I just jumped for joy. I was crying too, as it was such a burden lifted. I just kept saying ‘I’m free’ and calling everyone I know to say ‘I’m free’,” said the newly compensated subpostmistress. It of course doesn’t change the suffering we have been through for 20 years, but at least it’s something positive now for us. We can now look forward, not back.”

The Post Office scandal was first exposed by Computer Weekly in 2009, revealing the stories of seven subpostmasters and the problems they suffered due to Horizon accounting software, which led to the most widespread miscarriage of justice in British history (see below timeline of Computer Weekly articles about the scandal since 2009).

• Also read: What you need to know about the Horizon scandal •

• Also watch: ITV’s documentary – Mr Bates vs The Post Office: The real story •

• Also read: Post Office and Fujitsu malevolence and incompetence means huge taxpayers’ bill •

Timeline: Computer Weekly articles about the scandal since 2009

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