Postal workers wrongfully prosecuted to receive unlimited compensation in the Horizon scandal

Hundreds of postal workers wrongly prosecuted based on incorrect information from the Horizon IT system will be entitled to unlimited damages, it was announced on Tuesday.

Around 900 post office branch owners will receive financial compensation of at least £600,000 under a new scheme following legislation that overturned their convictions earlier this year. The government has confirmed that there is no upper limit on the compensation available to sub-postmasters who apply.

The Treasury has allocated a £1 billion fund to compensate postal workers affected by the scandal, considered one of Britain’s worst miscarriages of justice, through various schemes.

Between 1999 and 2015, hundreds of postmasters were convicted of crimes including fraud, false accounting and theft after the Horizon system, developed by Japanese IT company Fujitsu, falsely reported money was missing from branch accounts.

Since the scandal emerged, 110 postal workers have had their convictions quashed by the Court of Appeal, with the Post Office acting as plaintiff in all but 11 cases. Many victims, who faced prison sentences and financial ruin, were only exonerated when the new law came into effect in May.

The legislation was initially announced in January by Rishi Sunak, the then Prime Minister, following heightened scrutiny of the ITV drama Mr Bates vs the Post Office.

Alan Bates, a sub-postmaster who has campaigned for justice for 21 years, welcomed the announcement, saying: “It’s about time, it was the decent thing to do.”

The Post Office Offenses (Horizon System) Bill, which automatically quashed convictions for certain offenses when it came into force in May, was accelerated after the general election was announced.

Under the new scheme, which starts on Tuesday, those whose convictions have been overturned can apply for compensation through a government-run process. The Ministry of Justice has identified those affected and will send letters about the scheme. While 900 people are expected to be eligible, others can still sign up if not contacted directly.

The scheme offers two application pathways: an accelerated process offering a “full and final” compensation package of £600,000 with an identity check only, and a more detailed claims process with no limit on the payment amount. This approach is suitable for sub-postmasters who prefer not to revisit their experiences in depth.

Compensation is expected to amount to millions for those most affected. Applicants who choose the in-depth process will receive an initial payment of £450,000, after which further assessment will follow. Both application pathways include an interim payment of £200,000 as claims are processed. However, no deadline has been set for the final payouts, which will be administered by the Department for Business and Trade.

Provision has also been made for claims on behalf of deceased or unwell sub-postmasters.

Subpostmasters who have won lawsuits are entitled to a separate compensation scheme. Of the 110 people who had their convictions quashed, 48 have fully settled their claims, amounting to over £31 million in damages.

In addition, a further 3,000 victims who have been declared bankrupt or forced to pay back money are expected to seek compensation of more than £150 million.