A government minister just acknowledged that the Post Office is racking up too many legal fees tied to the Horizon IT scandal. The legal bills related to this mess have surged to a staggering £268 million.
In a recent hearing with the Parliamentary Business and Trade Committee, Gareth Thomas, the Department for Business and Trade minister, faced questions about these mounting costs. Committee chair Liam Byrne MP pointed out the eye-watering expenses and pressed Thomas about whether the Post Office is indeed overspending on legal services.
Thomas responded, saying they could encourage the Post Office to reassess both their spending and the tasks they assign to lawyers. He suggested that some of what lawyers are handling could potentially be done at a lower cost. When pressed further, he conceded, “Yes, it probably is” too much.
Byrne also highlighted fresh statistics showing that over £15 million has gone towards legal costs for the scheme designed to compensate members of the group litigation order (GLO), while £106 million has been paid out to subpostmasters. He pointed out that this means nearly one in every seven pounds is being spent on legal fees and questioned whether that level of spending offers good value.
Thomas maintained that legal advice plays a critical role in the scheme.
Sir Alan Bates, who leads the Justice for Subpostmasters Alliance, recently called on the government to set a deadline for compensating GLO members, but the government declined. Bates mentioned plans to hold a meeting to discuss potential next steps, including a possible legal challenge. “Everyone is concerned about the delay. It could drag on for years, and we’re still waiting for a deadline,” he remarked.
Bates believes public backing could make funding a legal effort feasible. If that happens, taxpayers might end up footing the bill again, as during the 2018/19 High Court battle, the Post Office spent over £100 million of taxpayers’ money for its defense, which ultimately fell apart against the subpostmasters’ team.
The scandal first came to light when Computer Weekly exposed it back in 2009, sharing the stories of seven subpostmasters who faced devastating issues due to the Horizon software, marking one of the biggest miscarriages of justice in British history.