London Daily

Focus on the big picture.
Thursday, Oct 23, 2025

UK taxpayer to foot bill for Post Office staff wrongly convicted of theft

UK taxpayer to foot bill for Post Office staff wrongly convicted of theft

Government steps in after service says it cannot afford compensation for the potentially hundreds affected
The government has agreed that the taxpayer will foot the substantial compensation bill for former Post Office workers who were wrongly convicted of theft due to the defective Horizon IT system.

The Post Office has said it cannot afford the multimillion-pound cleanup bill for the scandal and on Tuesday the government, which is the service’s only shareholder, confirmed its intention to step in.

So far, 72 post office operators’ convictions have been quashed. Several other cases are in train, and there are potentially hundreds more operators whose convictions relied on Horizon evidence who may seek to clear their names.

In a written ministerial statement, the postal affairs minister, Paul Scully, said he wanted those with quashed convictions to be compensated “fairly and swiftly”.

The vast majority of these people had received interim payments of up to £100,000 while they waited for the next step, Scully said. The government was now making cash available so final compensation awards could be made, he said.

“We are working with the Post Office to finalise the arrangements that will enable the final settlement negotiations to begin as soon as possible,” he said. The money would enable the Post Office to deliver the “fair compensation postmasters deserve”.

Between 2000 and 2014, the Post Office prosecuted 736 post office operators based on information from a recently installed computer system called Horizon. Some of the convicted workers were jailed following convictions for false accounting and theft, and many were financially ruined.

However, it was the software, which contained bugs, errors and defects, that had caused the problems, according to the high court judgment that quashed many of the convictions.

The government made the announcement just before a business, energy and industrial strategy committee hearing on the matter got under way.

Darren Jones, the committee’s chairman, said it was “wholly unacceptable” for the minister’s statement to be published at such short notice. He also said that “more questions need answering” as to whether the 555 people who paid false shortfalls but were not convicted will receive payments.

At the hearing, post office operators told MPs they had suffered big financial losses. Paul Harry, who was accused of false accounting, said he had recouped about a fifth of the funds he lost after shortfalls appeared in the Horizon accounting system.

Alan Bates, another former operator and founder of the Justice for Subpostmasters Alliance, said operators had paid in the region of £8.5m to the Post Office to cover supposed shortfalls.

“That’s before anything else, like the loss of their businesses and all the rest of it, including the financial difficulties they’ve been left in,” said Bates.

The group received a near £57m settlement in 2019 but £46m went towards the cost of legal action. That left £11m which averaged about £20,000 per person, he said.

Bates suggested it would take payments of £700,000 to put them back in the position they started had the Post Office not done what they did.

Harry, who has received an interim compensation payment, is hoping for further payments. “I have received a small amount of just over £20,000, but my losses are in excess of £100,000, so I am nowhere near getting my money.”
Newsletter

Related Articles

0:00
0:00
Close
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
×