Compensation scheme opens for sub-postmasters

Compensation scheme opens for sub-postmasters

The UK government has initiated a compensation scheme for former sub-postmasters and their families who faced financial shortfalls due to the Capture branch IT system, operational from 1992 to 2000. This system preceded the Horizon IT system, which has also encountered significant controversy.

A pilot phase of the compensation scheme is set to open for 150 applicants, allowing eligible sub-postmasters to receive £10,000 pending verification of their status. Following this, an independent panel will evaluate cases for final settlements that could reach up to £300,000, with potential for higher payments in exceptional circumstances.

Post Office Minister Blair McDougall stated that the scheme aims to acknowledge the hardships endured by sub-postmasters and their families, expressing hope that it will restore some dignity lost due to these events. The Capture system was replaced by the Horizon IT system, which continues to be in use today. Sub-postmasters were often wrongfully blamed and, in some cases, convicted of theft and false accounting due to errors made by the Horizon system, which falsely indicated missing funds.

As of late September, Horizon-related compensation schemes had disbursed over £1.2 billion to more than 9,000 affected individuals. A report by forensic accountants Kroll Associates found a “reasonable likelihood” that the Capture system also contributed to financial discrepancies in Post Office branches.

The compensation initiative was first announced by the Department for Business and Trade in June and will be piloted to ensure fairness and accessibility before broader implementation. An independent panel will determine final awards, and families of deceased or incapacitated sub-postmasters may apply on their behalf. However, individuals with criminal convictions related to these issues must pursue claims through the Criminal Cases Review Commission, as the new scheme does not extend to them. Notably, while all Horizon-related convictions were overturned in 2024, Capture cases remain excluded. Hudgell Solicitors has indicated that it is representing 24 individuals convicted due to errors associated with the Capture system.

Source: https://www.bbc.com/news/articles/cj3zlgxvzdjo?at_medium=RSS&at_campaign=rss

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