Post Office chaos cost taxpayers a huge £1bn after 555 posties accused of theft

02 January 2024 , 19:30

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The Post Office scandal which saw 555 postmasters wrongly accused of theft (Image: ITV)

The Post Office scandal which saw 555 postmasters wrongly accused of theft has cost the taxpayer in excess of £1billion, according to lawyers.

Postmasters were sacked, thrown in prison, and died by suicide over the allegations of missing money, which was due to a faulty new accounting system introduced by the Post Office in 1999. When thousands began to ‘disappear’ from their books in the early noughties, the organisation wrongly blamed its staff.

James Hartley of Freeth Solicitors, which helped to build the case against the Post Office, said estimates show it has cost the government in excess of £1billion in legal fees and compensation since. The scandal has been turned into an ITV drama with actor Toby Jones playing North Wales postmaster Alan Bates, who led the charge against the establishment.

The scandal has been turned into an ITV drama

James said: “People’s blood will be boiling, having watched the first ITV episode, in terms of what’s happened to these postmasters’ and how their lives were ruined. But the other aspect is unfortunately how much this has all cost. “Some estimates are in the region of over a billion pounds of public money. All of which could have been avoided, had the Post Office done the right thing.”

Monica Dolan, Lesley Nicol and Julie Hesmondhalgh all star in the ITV drama

However, Alan, who ran the Post Office desk in Craig-Y-Don suspects the final figure will be closer to £2billion as only a handful of those affected have received their final settlement. In October last year, Kevin Hollinrake promised a further £150m in additional financial support to the Post Office during the ongoing inquiry.

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The Post Office has already spent “tens if not hundreds of millions” on legal fees and compensation

The written statement from the Minister for enterprise, markets and small business also pledged to send “any contingency that may be required” - which may account for a further £40m. Mr Hartley said this comes after the Post Office has already spent “tens if not hundreds of millions” on legal fees and compensation.

Hollie Bone