A new compensation scheme for victims of the Post Office scandal, initiated by the Labour government in July, has made its first payment of £600,000 to a former subpostmaster—just over a month after her application was received.
This payment is noteworthy as the Horizon Convictions Redress Scheme is managed by the Department for Business and Trade, independent of the Post Office. Many victims have been waiting for years for payouts under longstanding compensation schemes that involved the Post Office.
The successful applicant is a former subpostmistress from Teesside who was wrongfully prosecuted in 2003 due to an unexplained £7,000 shortfall in her branch accounts. She was suspended, borrowed money from family and friends to repay the shortfall within a week, but still faced a conviction for theft. Following this ordeal, she had to sell the shop she ran with her husband and relocate. She wishes to remain anonymous.
In May, the government enacted unprecedented legislation to overturn hundreds of convictions stemming from the flawed Horizon IT system, paving the way for victims of these miscarriages of justice to seek financial redress. The new administration has allocated at least £540 million to the Horizon Convictions Redress Scheme, with around 900 individuals estimated to qualify for at least £600,000—many may be eligible for even higher amounts. To date, average settlements for wrongly convicted individuals have exceeded £600,000.
Every eligible applicant will receive a £200,000 upfront interim payment, which can increase to £600,000 for those opting to settle. Others who wish to have a complete assessment of their losses and suffering can negotiate for larger payouts. The former subpostmistress received her formal exoneration notice from the Ministry of Justice in August, confirming that her conviction had been quashed. Working alongside Hudgell Solicitors, which represents numerous victims, she submitted her application for damages and received her payment just over a month later.
“Like many other former subpostmasters, I had no idea why the accounts were imbalanced and received no assistance, so I ended up pleading guilty to taking the money,” said the subpostmistress, now in her 60s. “I always believed that, by admitting guilt, I would never be able to clear my name. A conviction casts a shadow over every aspect of your life, impacting my mental health and my husband’s as well. For years, I struggled to find work, and even lost jobs when employers discovered my criminal record.”
Neil Hudgell, a solicitor, mentioned that his firm has submitted applications for more than 180 former subpostmasters under the new scheme. “We are thrilled to have secured the first payment under this new program. The entire process—from the confirmation of our client’s exoneration to the payment—was completed in just over a month,” Hudgell noted. “For many applicants willing to accept the £600,000 settlement, the process has been relatively straightforward. However, each case is evaluated individually, with some individuals opting for full assessments due to more complex situations or greater losses.”
“Many victims have faced a lifelong burden from this ordeal, and some are elderly or in poor health. It’s understandable that many are choosing to accept the settlement offer now to improve their quality of life,” he added.
Hundreds of former subpostmasters are still awaiting their exoneration letters. The government is encouraging these individuals to come forward and take advantage of the new redress scheme.
“I received the letter confirming my conviction had been quashed in a plain white envelope, so I wasn’t expecting it at all. When I read it, I jumped for joy and cried; it felt like a heavy weight had been lifted. I kept saying, ‘I’m free,’ and calling everyone to share the news,” said the newly compensated subpostmistress. “While it doesn’t take away the pain we’ve endured for 20 years, it’s a positive turning point for us. We can finally look forward instead of backward.”
The scandal gained attention in 2009 when Computer Weekly first exposed it, detailing the experiences of seven subpostmasters impacted by the Horizon accounting software, which led to one of the most significant miscarriages of justice in British history.
For further insights, see related articles and watch ITV’s documentary “Mr. Bates vs The Post Office: The Real Story.”