Post Office victims' compensation payouts to be sped up

The government has announced new measures to speed up compensation to victims of the Post Office scandal.

An interim payment of £450,000 will be available to sub-postmasters who had convictions overturned, up from the current level of £163,000.

Legislation to clear wrongly convicted sub-postmasters is also expected to be brought forward next month.

Post Office Minister Kevin Hollinrake said the steps were "unprecedented, but the right thing to do".

Announcing the measures to MPs, Mr Hollinrake confirmed hundreds of people wrongly convicted in the Post Office scandal would have interim compensation payments increase, once they had submitted a full claim.

The payments would be available to members of the Overturned Convictions Scheme and made while victims' final settlements are processed.

Mr Hollinrake confirmed those connected to another compensation scheme, the Group Litigation Order (GLO) Scheme, would now be able to get 80% of their offer paid out if they decided to fight on for a better deal.

He also told MPs that legislation aimed at exonerating wrongly convicted sub-postmasters is expected to be brought forward "as soon as possible next month".

Reacting to the announcement, Chris Hodges, chair of the Horizon Compensation Advisory Board, said he anticipated the package would "lead to much swifter payments and less hassle in many cases".

Between 1999 and 2015, more than 900 sub-postmasters were wrongly prosecuted due to faulty software.

Incorrect information provided by a computer system called Horizon, developed by Japanese firm Fujitsu, meant that sub-postmasters and postmistresses were prosecuted for stealing money.

Many of those convicted went to prison for false accounting and theft. Many were financially ruined.

Some sub-postmasters caught up in the scandal have died in the intervening years.

So far, 101 convictions have been overturned.

• How do the Post Office compensation schemes work?

• Why were hundreds of Post Office workers prosecuted?

• Post Office scandal victims set to be cleared by law

There is no single compensation scheme for sub-postmasters to apply to, and individual eligibility will depend on the particular circumstances of an individual's case.

The three main schemes are aimed at groups of victims who had different experiences of the scandal and include:

• The Overturned Convictions Scheme

• The Group Litigation Order Scheme

• The Horizon Shortfall Scheme

Victims whose convictions are overturned can choose to take a fast-tracked £600,000 settlement, or can enter into negotiations if they feel they are entitled to more. All eligible people are entitled to the "interim" payment, which the Post Office minister announced would increase.

As of 1 February 2024, approximately £160m has been paid to over 2,700 claimants across the three schemes.

When the government's promised law to overturn all convictions linked to the scandal becomes a reality, hundreds more people will be eligible.

Addressing the Commons, Mr Hollinrake said the government had committed to provide offers on a fully completed claim within 40 working days in 90% of cases.

He added that serious consideration will be given to look at a third scheme - the Horizon Shortfall Scheme.

As well as requirements relating to people eligible for exoneration under the legislation, Mr Hollinrake said those affected would have to sign a statement to the effect that they did not commit the crime for which they were convicted before they could receive financial redress.

If they were subsequently found to have signed the statement falsely, Mr Hollinrake said they "may be guilty of fraud".