Fulfilling a key request from those impacted by Post Office Horizon scandal, Department for Business and Trade today (3) announced that those who have had their convictions overturned will now have their conviction claims administered by the government, completely taking them out of the hands of the Post Office.
The Post Office will cease to be involved in the redress for postmasters with overturned convictions.
After a three-month transitional period, the Department for Business and Trade’s Horizon Convictions Redress Scheme (HCRS) will broaden its scope to take on responsibility for redress for postmasters who have had their convictions overturned by the Courts.
These are currently dealt with by the Post Office through their Overturned Convictions scheme. This is something that postmasters, campaigners, and Parliamentarians, including the Business and Trade Select Committee, have all called for.
Stating that the victims have "suffered a huge amount", the department stated that while the government can’t fully put right what they have been through, it can make sure the compensation process "works better for them by listening to their grievances and acting upon them where possible to ensure postmasters are treated with dignity and respect".
"Today, this means ending the difficulty of dealing with the organisation which upended so many of their lives," stated the department.
The delivery of redress for victims of the Post office Horizon scandal is a key government manifesto commitment, with a commitment of £1.8 billion to ensure all postmasters receive the justice and financial redress they deserve.
Post Office Minister Gareth Thomas said, "My priority upon coming into office was to speed up the delivery of compensation to the victims of the Horizon scandal.
"We have made significant progress, and we are now moving to ensure there is a quick transfer of schemes from the Post Office to the Department.
"In the meantime, I encourage all those eligible to apply for redress under the Overturned Convictions scheme and continue to progress their claims with the Post Office until the transfer date."
The Department for Business and Trade will formally take over on June 3 2025. The three-month transitional period between now and then will allow for the smooth transfer of active claims from one scheme to the other, ensuring there is no gap in service for postmasters who have claims in the system.
As of 31 January, approximately £663 million has been paid to over 4,300 claimants, which has more than doubled since the end of June 2024.
Today’s announcement is the latest in a series of government actions to address the Post Office Horizon Scandal, including:
launching the Horizon Convictions Redress Scheme (HCRS) for postmasters whose horizon-related convictions were quashed by Parliament. This scheme has made 364 interim payments to eligible claimants and has fully settled 208 claims, paying out a total of £156 million.
on the HCRS, committing to provide first offers on receipt of detailed claims within 40 working days in 90 per cent of cases.
beginning payments of a £75,000 fixed offer for those postmasters in the Horizon Shortfall Scheme (HSS) who want to accept it: approximately £171 million has been paid in award top-ups and £75,000 awards.
publishing our response to the consultant’s report into the Post Office Capture software (predecessor to Horizon) and have committed to offering redress to all non-convicted postmasters who fell victim to flaws in Capture software.
announcing an independent appeals process for the HSS to provide individuals with a chance to have their claims reassessed through a DBT-run process. We expect the first cases will be ready for submission in the Spring.
confirmed the Horizon Compensation Advisory Board in place.
Widow of the former post master, whose compensation arrived days after his death, has slammed Post Office for delaying the compensation as well as for offering an "utter disgrace" of the redressal.
Terry Walter was one of 555 sub-postmasters who won a legal battle against the Post Office in 2019. He was part of the GLO Group Litigation Order (GLO) Scheme established after the 2019 High Court win.
The scheme's aim is to restore sub-postmasters to the financial position they would have been in had they not become victims of faulty Horizon software which caused false accounting shortfalls.
Walter had his Post Office contract terminated in 2008. He and Janet lost their business and then their family home. They moved in to rented accommodation where they lived for the past 15 years.
Janet said Terry's claim was put forward in February 2024 and it has taken a year to receive an offer for redress from the government.
Terry passed away in February, a week before a letter arrived offering "less than half" of his original claim for financial redress.
"It should have been a 40-day turnaround of an offer. And it's taken 12 months to receive an offer, an offer which came after Terry had passed away.
"They wanted a stroke report back in September to drag it out a bit more, to see if it's being caused by all the stress from the Post Office."
"I think it contributed considerably to the whole state of him.
"I've told them I will not accept [the offer]," Janet tells Sky News. "I think it's an utter disgrace. Not when I look at him and I think, no, what you've been through - I won't just take anything and go away.
"It's a scandal what they did with the Horizon system, it's a scandal now because of the length of time it's taken [on redress]."
The Department for Business and Trade (DBT) said, "We are sorry to hear of Terry's death and our thoughts are with Janet and the rest of his family and friends."
They added they have now issued 407 offers to the 425 GLO claimants "who have submitted full claims" and are "making offers to 89 per cent of GLO claimants within 40 working days of receipt of a full claim, with over half of eligible claimants having now settled their claim."
The DBT also said it has "doubled" the amount of payments under the Labour government to "provide postmasters with full and fair redress".
The Post Office and DPD have on Thursday announced an expansion of their partnership with international delivery services.
Following a successful trial at 300 post offices, customers wanting to send parcels abroad can now choose from ‘DPD Classic’, ‘DPD Direct Lite’ and ‘DPD Air Classic & Air Express’ services. The international delivery services are now available at 4,100 post offices across the UK.
The Post Office and DPD partnership began in 2021 and already includes ‘Click and Collect’ and Next Day delivery services within the UK.
This announcement follows a virtual Postmaster Conference which took place on 4 March, organised and hosted by postmasters. The Post Office outlined it remained focused on expanding Mails and Parcels services to more branches, ensuring customers have access to the best-in-market, safe, and convenient options for shipping, pickup, and drop-off—both online and in-branch.
“As part of delivering our ‘New Deal for Postmasters’ it’s vital that we strengthen postmasters’ offer to customers. Expanding our already successful partnership with DPD is a demonstration of this,” Neil Brocklehurst, Post Office acting chief executive, said.
“In today’s fast-paced world, customers and businesses expect international parcels to reach their destination in a matter of days and having DPD international delivery services available provides them with the options to meet their needs.”
Elaine Kerr, DPD UK chief executive, commented: “We really value our relationship with the Post Office and introducing international services is the logical next step, with online and buy-in-branch now well established. We have the largest delivery network in Europe and deliver to over 200 destinations worldwide.
“Our approach is designed to make it easy and affordable to find the right international service with free tracking included and duty and customs made as straightforward as possible.”
A four-week trial has been running since February to get postmasters feedback on guides and other self-help tools to support them in selling and promoting DPD international services in branch.
“It’s already been a great experience,” Phil Ballantyne, peer support postmaster from Appleby, and who was part of the trial said.
“I’ve been able to save customers £3, they are getting a better service, and the branch is receiving even better remuneration compared to alternative services.”
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Fujitsu, the tech company at the heart of the UK's Post Office scandal
Fujitsu, the maker of the software behind the wrong conviction of hundreds of sub post masters in Britain's biggest miscarriage of justice, has been asked to make an "interim payment of at least £300 million" to cover the compensation paid to Post Office Horizon scandal.
Labour peer Lord Beamish called on a debate in House of Lords on Thursday (27) on the progress of the Post Office Horizon compensation scheme and of the contribution of Fujitsu to the compensation of victims.
Stating that Fujitsu not only covered up the fact that Horizon system was full of bugs and could be remotely accessed but also took an active part in the prosecution of sub-postmasters, Lord Beamish slammed the Japanese firm for "hiding behind the public inquiry".
"At the public inquiry and the Commons Select Committee, Mr Patterson (Paul Patterson, the director of Fujitsu in the UK) said that he apologised to the sub-postmasters and that Fujitsu would make a contribution to compensate victims.
"As of today, no money has been paid by Fujitsu to victims and this is a company that is still making multimillion-pound profits from government contracts.
"It said that it was not going to bid for new contracts, but what it is doing is extending existing contracts. That is happening at the same time as the taxpayer is paying out nearly £600 million in compensation to victims, and many victims are still waiting for compensation."
Apart from calling on Fujitsu to cough out £300 million as interim payment, Lord Beamish also demanded that the Government should bar Fujitsu from taking part in any future contracts if major change has not taken place.
Conservative peer Lord Arbuthnot of Edrom supported the proposal, noting that while Fujitsu had acknowledged its "moral obligation," it was ultimately the taxpayer who was bearing the financial burden, amounting to hundreds of millions.
He said, "The noble Lord, Lord Beamish, suggested £300 million; £700 million would be less than half the cost that the taxpayer is currently estimated to bear.
"If it does not do that, why should the Government offer it further extensions of its existing contracts, still less grant it new contracts?"
Labour peer Baroness Elliott of Whitburn Bay also expressed her support for the proposal, asserting that it was time for Fujitsu to take responsibility and contribute to the compensation fund.She urged all parties involved to act as swiftly as possible to ensure that all victims of the scandal received the payments they rightfully deserved.Conservative peer Lord Polak emphasized the need for the Government to provide clear and transparent communication to claimants about the claims process, ensuring they understood what to expect and the timeframe involved. He agreed with Lord Beamish’s suggestion of a £300 million contribution from Fujitsu but argued that the company should match the amount already covered by the taxpayer, acknowledging that while it was a significant sum, it was a necessary obligation.
Parliament was told that if the Japanese tech giant was an individual it would be facing years if not decades in jail for its active part in the Horizon IT scandal which saw sub postmasters “maliciously prosecuted”.
The firm continued to enjoy lucrative extensions to government contracts bankrolled by the public while the taxpayer funded payouts to victims of what is believed to be Britain’s biggest miscarriage of justice, Westminster heard.
Hundreds of sub postmasters were wrongly convicted of stealing after Fujitsu’s defective Horizon accounting system made it appear as though money was missing at their branches.
The Post Office also forced at least 4,000 branch managers to pay back cash based on the flawed data. Some victims were sent to prison or financially ruined, others were shunned by their communities, and some took their own lives.
The number of convictions linked to Capture computing software, which was used in Post Office branches in the 1990s before the infamous faulty Horizon system was introduced, has more than doubled in a span of less than three months, revealed a recent report.
21 Capture cases have now been submitted to the Criminal Cases Review Commission (CCRC) for review against eight that were reported in December, according to a recent report by Sky News.
Quite similar on the lines of Horizon Post Office scandal where sub post masters were wrongly convicted due to shortfall, Capture accounting system, used from the early 1990s until 1999, was also responsible for shortfalls which led to several wrongful convictions.
Last year in December, Post Office was asked to urgently review its files and evidence related to Capture so the Criminal Cases Review Commission (CCRC) and the Scottish Criminal Cases Review Commission (SCCRC) can ensure no one was wrongfully convicted of a Horizon-style injustice.
Responding to the independent Kroll report into the software, the business secretary has promised to provide redress for postmasters who suffered losses as a result of Capture.
The government said it will work swiftly with victims to determine its form and scope, alongside eligibility criteria, by Spring 2025.
The government commissioned the independent report following postmasters coming forward publicly in January indicating they had faced detriment due to the Capture system. In its report, Kroll concluded Capture could have created shortfalls.
If the CCRC finds significant new evidence or legal arguments not previously heard before, cases can be referred back to the Court of Appeal.
Apart from Horizon and Capture, a leading postmasters body accuses Ecco+, another pre-Horizon IT system that was introduced to post masters between 1992 and 1999, as likely to faulty due to which hundreds of sub postmasters were prosecuted by the Post Office.
Speaking with Asian Trader last year, Calum Greenhow – Chief Executive Officer at National Federation of Sub Postmasters (NFSP) stated that Ecco+ system that was introduced between 1992 and 1999 also created problems for sub post masters.
Greenhow said, "Apart from Capture that came in pre-Horizon time, there was another one called Ecco+ that was in operation between 1992 to 1999. Within that period, (I have learned just in the last few days) post office brought about 334 prosecutions over an eight-year period."
He added, "We have heard so much about Post Office carrying out prosecutions during the Horizon. The fact is, they carried out prosecutions prior to Horizon as well, to near enough the same number and to the same degree.
"So we're talking about a prosecution regime over a 32-year period, not a 25-year period. Their attitude against sub postmasters and their own staff has been prevalent for well over 30 years," he said.
Post Office Horizon scandal victim Seema Misra OBE has slammed the government for paying "£40 million" to extend its contract with Fujitsu to continue using the controversial Horizon IT software.
Speaking with Asian Trader, Misra questioned the government's real motive behind the contract renewal despite Horizon being in the centre of what is considered as Britain's biggest miscarriage of justice.
"The real question here is what does the government get this time to renew the contract with Fujitsu? They must have got something last time. They knew the system was flawed but they still brought the IT system into Post Office last time too.
"So what incentive or how much amount they are being offered this time that they have agreed to renew contract with Fujitsu to continue using Horizon in the Post Office branches?," asked the campaigner, who has recently been named OBE in the New Year honour's list for her unwavering commitment to justice.
At least 700 subpostmasters and subpostmistresses were wrongly prosecuted for apparent financial shortfalls which were actually caused by faults in the accounting software Horizon created by Fujitsu.
Accused of stealing £70,000 from her Post Office branch in West Byfleet, Surrey, Misra was sent to jail in 2010. She was eight weeks pregnant at the time. Her conviction was quashed in April 2021.
Last year during a hearing of Post Office Horizon scandal public enquiry, Misra rejected an apology from former Fujitsu engineer Gareth Jenkins, who was pivotal in helping the Post Office defend the faulty computer software system in criminal and civil cases.
At Misra's trial in 2010, he failed to tell the court about a bug in the software that could have undermined the case against her.
Despite the mountain of evidences that, inews revealed last week that the Post Office has renewed its contract with Fujitsu to continue using Horizon until March 2026 at a cost of £40.8 million.
The Post Office previously said it planned to replace Horizon with “new branch technology” but would maintain the old IT software until the new technology is developed.
Seema Misra (L-4) and Vijay Parekh (L-5) receive Ramniklal Solanki Editor’s Award at the 2024 Asian Trader Awards Asian Trader Awards
Responding to Fujitsu’s new contract, Horizon scandal campaigner Christopher Head OBE added, “We understand that in order to transition to a new system you have to maintain the old one until you get to the point that you are satisfied.
"In this circumstance, with the Post Office, you’d be more cautious given what’s happened with the previous system.”
Janet Skinner, aformer subpostmistress from Hull, was handed a nine-month sentence for theft in 2007 after £59,000 appeared to be missing from her Post Office branch.
She served three months of that sentence before being released with an electronic tag but was hospitalised in 2008 with a stress-related illness.
Commenting on the extension of Fujitsu’s contract, Skinner told inews, “It’s an insult. It’s like they are rewarding them for their bad behaviour.
“There needs to be accountability and accountability is not awarding contracts to a company that has been at the forefront of this scandal.
“It just infuriates me. Absolutely infuriates me. God knows what the other postmasters are feeling. It’s just like being kicked in the teeth.”