A new funding scheme that will ensure postmasters who played a crucial role in uncovering the Post Office Horizon IT scandal receive their fair share of compensation.
The new compensation scheme will be set up in the coming months targeted at the postmasters who brought and won the landmark High Court case against the Post Office over the failings. The 2019 ruling paved the way for millions of pounds worth of future pay-outs and led to the Court of Appeal quashing the convictions of postmasters who were wrongly accused of committing crimes.
Despite winning nearly £43 million in compensation in 2019, the group was left financially disadvantaged after having to pay significant legal costs based on a “no win, no fee” agreement with Therium – the company which funded its litigation. Due to the terms of their legal agreement each postmaster received a small fraction of the settlement - equating to around £20,000 each.
Their action meant they were also ineligible to apply to the Historical Shortfall Scheme (HSS) which was set up to by the Post Office following the scandal to compensate postmasters who had to personally cover shortfalls in their branch’s accounts caused by the Horizon IT.
The new scheme will ensure that those who uncovered the injustice receive the same level of compensation as the postmasters who claimed through the HSS.
Speaking in the House of Commons, James said:
"I join in welcoming this new compensation scheme and the tenacity the minister has shown in addressing this injustice. Will the government look to recover these compensation costs from those responsible for this scandal, the providers of the Horizon system and also look to recover bonuses paid to those running the Post Office during this shameful period?"
The scheme comes after the government announced a separate scheme last year to provide funding for full and final settlements for eligible postmasters who have had their Horizon-related conviction overturned, with those eligible to receive an interim payment of up to £100,000 each.
