In a shocking revelation, the Post Office expects to shell out more than £650 million in compensation to branch owner-operators who fell victim to the notorious Horizon IT scandal. The state-owned institution has already paid a staggering £302 million to those wrongfully prosecuted based on evidence from the flawed computer system, but the total payout is projected to reach an eye-watering £1.15 billion by March 2026.
ITV Drama Sparks Surge in Compensation Claims
The recent ITV series, “Mr Bates vs the Post Office,” which chronicled the plight of hundreds of branch owners, has been credited with the massive uptick in compensation claims. According to documents presented at the public inquiry, the Post Office received a whopping 1,146 late applications to its redress schemes, with 697 coming in the wake of the hard-hitting drama aired in January.
I’m very grateful for the TV drama to have raised the issue [and prompted more applications]
Simon Recaldin, Head of Post Office Redress Schemes
The Post Office officially closed applications for its compensation schemes in November 2020 but made the decision to continue accepting further claims from late 2022 onward.
Sluggish Compensation Process Under Fire
The inquiry heard that a “standard” compensation claim took an average of 445 working days to process, although this had decreased to 302 working days in 2024. Recaldin acknowledged that the process takes too long but pointed to the necessary procedures that must be followed. He conceded that there was room for improvement in terms of speed and efficiency.
Post Office Faces Criticism Over Handling of Redress
The Post Office has come under fire for its handling of the compensation process, with former chair Henry Staunton describing the remediation department as “bureaucratic and unsympathetic.” The current redress schemes exclude applications from managers and assistants at affected branches, as they are contracted by the owner-operator rather than directly by the Post Office.
Government Considers Extending Compensation Eligibility
The government is reportedly considering whether to extend the eligibility criteria for compensation to include employees of owner-operators who may have claims. However, Recaldin noted that there was insufficient funding set aside to cover potential payouts should the scheme be expanded.
Concerns Over Conflict of Interest in Redress Process
Recaldin echoed the sentiment of outgoing Post Office CEO Nick Read, stating that the organization should not be responsible for handling the redress schemes due to the “real danger of a conflict of interest.” He emphasized that the Post Office was acting as “judge, jury, and witness” in the process.
There was clear direction from the government that there has to be a degree of accountability here [for the Post Office], and that it was feet to the fire time.
Simon Recaldin, Head of Post Office Redress Schemes
As the public inquiry into the Post Office Horizon scandal continues, the full extent of the compensation owed to the hundreds of wrongfully prosecuted branch owners is coming to light. With claims skyrocketing in the wake of the ITV drama and the sluggish, criticized redress process, the Post Office faces a long road ahead in making amends for the devastating impact of its flawed IT system.
