Saturday, January 18, 2025

Subpostmasters Won’t Receive Financial Compensation Until Mid-2027 at Current Progress Rate

Subpostmasters who took the Post Office to court to expose the scandal are still waiting for justice, with financial redress not expected until mid-2027. Sir Alan Bates, a key figure in the Justice for Subpostmasters Alliance (JFSA), shared this update with members in his latest circular.

The JFSA formed in 2009 after Computer Weekly pinpointed issues with the Post Office’s Horizon system. This flawed software, developed by Fujitsu, led to mysterious account shortfalls for many subpostmasters, who were wrongly blamed and punished. The JFSA’s collective efforts achieved a significant victory, proving the system’s deficiencies in a High Court group litigation order.

Currently, only about half of the roughly 500 former subpostmasters in the group have received full financial compensation. The government committed to redress after sustained JFSA campaigning and the pressure of a public inquiry. Bates noted some progress, with most claimants expected to see 80% of their offers by the end of March, but he expressed frustration at the slow pace. He highlighted that at the current rate, it could take until 2027 for all claims to be resolved.

Bates pointed out that of the 243 claims fully settled, many were for smaller amounts, like the £75,000 offer taken by some claimants. More complex cases are dragging on, with minimal progress indicated by the meager uptick in fully settled claims. Between late November and early January, only eight more claims were resolved. Bates explained that this slow pace forces them to look at differing claims, emphasizing that many unresolved ones are complex and deserve proper attention.

He urged members to keep pushing the government for deadlines on redress, noting that without a significant change in the Department for Business and Trade’s approach, many might face long waits for resolution.

A DBT spokesperson disagreed with Bates’ timeline, stating that they’re acting faster than ever, with 90% of initial offers made quickly. They claimed that claims are being settled in a timely manner to ensure fair compensation for all claimants.

Reflecting on the JFSA’s ongoing struggle, Bates pointed out that after the group won in 2019, the compensation received was less than expected once legal costs were deducted. The Post Office responded by creating a compensation scheme but excluded JFSA members, claiming the court settlement was final.

In 2020, Bates reached out to the government, arguing for coverage of legal costs to provide just compensation, but the request was denied. Following a lengthy battle, discussions with government officials continued into 2022, stressing the need for recognition of the injustices faced by subpostmasters.

The public inquiry eventually included compensation in its scope, addressing the grievances highlighted by the JFSA. After the inquiry assured it would consider the matter, the government finally agreed in March 2022 to compensate the 555 victims of the Post Office scandal, but this was already long overdue, as the initial exposures by Computer Weekly started back in 2009.