Victims of Post Office scandal to be handed £75,000 upfront compensation payment

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The quashing of Horizon convictions will be done on a "blanket basis" (Image: AFP via Getty Images)
The quashing of Horizon convictions will be done on a "blanket basis" (Image: AFP via Getty Images)

Downing Street has said each victim of the Horizon scandal falsely convicted will be awarded a £75,000 compensation payment.

The Prime Minister’s official spokesman said: “We will introduce new primary legislation to quash all convictions that were based on erroneous Horizon evidence or the egregious behaviour of the Post Office in the period in question.

“This will be done on a blanket basis, clearing people’s names and making sure they access the compensation they rightly deserve as quickly as possible instead of waiting for years for the courts to wade through hundreds of convictions. We will in the coming days consider whether to include the small number of cases that already have been considered by the Appeal Courts.

“We will also make sure that postmasters who played a crucial role in first exposing the scandal receive the compensation they deserve. These individuals, known as the Group Litigation Order (GLO) cohort, who did not receive a criminal conviction but paid out considerable sums of money because of Horizon failures, will receive an upfront offer now of at least £75,000 of compensation.”

Victims of Post Office scandal to be handed £75,000 upfront compensation payment tdiqtiqzuidzuinvHundreds of postmasters will be exonerated (Getty Images)

The Government will introduce legislation to exonerate hundreds of postmasters whose lives were torn apart after they were accused of swindling money due to a dodgy IT system.

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Rishi Sunak made the long-awaited announcement at Prime Minister's Questions after a public outcry in the wake of the ITV drama 'Mr Bates vs the Post Office'. He also confirmed a new upfront payment of £75,000 for the group of postmasters who took legal action against the Post Office.

Ministers have been locked in talks with legal experts over how to clear the names of more than 900 Post Office workers caught up in the Horizon IT scandal. So far, only 93 people have had their convictions quashed.

The PM told MPs: "Today I can announce that we will introduce new primary legislation to make sure that those convicted as a result of the Horizon scandal are swiftly exonerated and compensated. We will also introduce a new up-front payment of £75,000 for the vital GLO (group litigation order) group of postmasters."

He described it as "one of the greatest miscarriages of justice in our nation's history" and said people who worked hard for their communities had their "lives and reputations destroyed through absolutely no fault of their own". The PM added: "We will make sure that the truth comes to light, we right the wrongs of the past and the victims get the justice they deserve."

Under the proposal, postmasters in England and Wales will be asked to sign a statement of innocence and their conviction will be automatically quashed. They will also then be able to claim compensation. Downing Street will work with Scotland and Northern Ireland, where the matter is devolved, to ensure postmasters can also be cleared.

Business Minister Kevin Hollinrake said it would involve "unprecedented action" by Parliament to intervene in the justice system on such a scale. He admitted the Government cannot guarantee that all postmasters are innocent and there is a risk that a small number of people who are actually guilty will be exonerated.

"I do not pretend it is a foolproof device but it is a proportionate one with respect to the ordeal these people have already suffered," he told MPs. "It means an honest postmaster will have his or her conviction overturned, and just be signing one document can secure compensation."

Mr Hollinrake said ministers would work to prevent "guilty people walking away" with public cash. If someone is found to have lied then they will be prosecuted.

Once the legislation is passed and convictions have been quashed, people will be entitled to at least £600,000 in compensation.

Ryan Fahey

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