Saturday, January 18, 2025

Sir Alan Bates Raises ‘Serious Concerns’ About Budget for Post Office Scandal Compensation

Sir Alan Bates is really worried that the government’s budget for Post Office scandal compensation won’t stretch far enough to cover the legal costs for those making claims. He welcomed a recent report from the parliamentary business and trade select committee, calling it “very positive and quite insightful.” This report pushes for deadlines on redress for subpostmasters and suggests penalties if those deadlines aren’t met.

The committee’s report, titled “Post Office and Horizon scandal redress: Unfinished business,” calls for the Post Office to step back from handling any of the redress schemes. It also recommends that claimants receive upfront legal advice and that independent adjudicators be appointed. Taxpayer-funded lawyers need to speed up payments to subpostmasters, reduce delays, and prioritize claims. They should also be required to publish how much the government spends on lawyers.

In February 2024, during a lengthy five-hour hearing, MPs pointed out that the complexity and unfairness of the financial redress schemes for former subpostmasters are leading to slow and often unjust settlements. Bates and other witnesses urged for legally binding deadlines for payments. A year later, progress is still painfully slow. In her Autumn Budget statement in October, Chancellor Rachel Reeves announced £1.8 billion for compensating the victims. But by November, only £499 million had actually been disbursed across four schemes, leaving 72% of the budget untouched.

The report raised concerns about lawyers’ fees eating into the compensation pot. Bates expressed serious reservations: “That money should be ring-fenced for victims, not for paying legal costs.” The committee pointed out that it’s essential for claimants to receive legal advice at no cost to them, funded by the scheme administrators.

Liam Byrne MP, chair of the committee, emphasized that it’s been years since this major miscarriage of justice occurred, and thousands of victims still haven’t received the compensation they deserve. He stated, “Justice delayed is justice denied.” He called for clear deadlines for government lawyers and insisted that the Post Office be removed from overseeing the compensation process.

Bates noted that the committee’s report shows some political awareness of the issues at hand, although he feels civil