The Post Office believes it took about £36 million from subpostmasters between 1999 and 2015. This happened because these subpostmasters had to cover shortfalls in their accounts that didn’t exist—issues created by the faulty Horizon accounting system.
That number is likely to rise. The Post Office plans to contact around 25,000 current and former subpostmasters soon, urging them to apply for financial compensation if they think they lost money because of Horizon.
When Horizon launched in 1999, subpostmasters started noticing unexplained account shortfalls. Due to a problematic contract with the Post Office, they were responsible for these gaps. Many faced prosecution or lost their jobs, while others used their own savings to make up for the missing funds. All those affected deserve financial compensation.
During a three-day inquiry into the Post Office scandal, CEO Nick Read shared that subpostmasters have so far paid back about £36 million to cover these unexplained shortfalls. Sam Stein, KC, representing the victims, pressed Read on where that money went. Read noted that external forensic accountants have been reviewing this issue and identified the £36 million figure based on current claims in the redress scheme, though he admitted that it’s not a definitive number.
The latest analysis done by KPMG also highlighted the difficulty in retrieving historical data from the Post Office, which makes it challenging to determine exact figures.
Stein referenced a recent YouGov report showing that many current subpostmasters are still using their own money for unexplained shortfalls. These small payments—whether it’s £10, £20, or £50—add up quickly. He emphasized, “Your figure of £36 million is growing.”
The survey, commissioned by the public inquiry, found that 57% of current subpostmasters have encountered unexplained shortfalls since January 2020. This includes 19% who noted transactions they couldn’t account for and 14% who had missing transactions. A significant 75% of respondents said they had used their own funds to address these discrepancies.
Regarding the slow progress in compensating the victims, Read stated that the Post Office will reach out to about 25,000 individuals who haven’t yet enrolled in the Horizon Shortfalls Scheme (HSS). They have also been communicating with those already in the HSS, especially after the government introduced a fixed payment option of £75,000 in March 2024.
The Post Office added, “We’re offering additional payments to eligible subpostmasters who received less than £75,000 from the HSS originally, and we’re expanding the fixed-sum offer for those with ongoing applications.”
The scandal first came to light in 2009, thanks to Computer Weekly, which revealed the struggles of seven subpostmasters affected by the Horizon software. This scandal is recognized as one of the largest miscarriages of justice in British history.