Government Considers Second Compensation Scheme for Sub-Postmasters Affected by IT Scandal
Sub-postmasters who faced criminal convictions due to a second IT scandal at the Post Office have been informed that the Government is contemplating the establishment of a second compensation scheme. This revelation comes from The i Paper, which has been closely following the situation.
Officials at the Department for Business and Trade (DBT) are currently addressing hundreds of potential claims related to a software system known as Capture, which was introduced to branches in the 1990s as a precursor to the notorious Horizon software. Over the past year, The i Paper has uncovered numerous investigations indicating that former sub-postmasters believe the Capture system was flawed, leading to significant shortfalls as they attempted to balance their accounts. Much like the Horizon scandal, many of these individuals were compelled to repay money, were dismissed from their positions, and in some instances, faced criminal prosecution by the Post Office.
Before Christmas, the Government announced its intention to explore the possibility of a new compensation scheme following an independent review that identified a “reasonable likelihood” that the Capture software was responsible for the financial discrepancies experienced by sub-postmasters. To date, over £1 billion has been allocated to address claims related to the Horizon scandal.
On Thursday, the DBT convened a meeting in Whitehall attended by dozens of victims, with many others participating virtually. Among those present was Steve Marston, 69, who traveled to the meeting after being convicted of theft and false accounting in 1998, despite his insistence that he never took “a penny” from the Post Office. His case is currently one of 27 under review by the Criminal Cases Review Commission (CCRC), which is tasked with evaluating potential miscarriages of justice for referral to the Court of Appeal. Mr. Marston’s conviction was a direct result of actions taken by the Post Office in 1998.
During the meeting, victims of the Capture software were informed that a distinct compensation scheme might be necessary for those who have been exonerated, in addition to reimbursements for lost funds. The hope is to have a comprehensive plan in place by May, pending approval from ministers at both the DBT and the Treasury.
“I was informed that my case, along with another, has successfully passed the initial review at the CCRC,” said Mr. Marston. “This gives us hope. They are actively considering implementing a scheme for those with convictions. They assured us that if a separate scheme is established, it would be prioritized.”
Mr. Marston expressed his desire for the new chief of the justice watchdog, Karen Kneller, to expedite the process of bringing cases before the Court of Appeal. “We’ve already lost some people to this ordeal. We cannot afford to lose more individuals without justice being served,” he added.
Lee Bowerman, a former sub-postmaster who claims he lost approximately £60,000 due to issues with Capture, voiced his frustrations about the slow progress following the meeting. “The Government seems hesitant to make firm commitments, even regarding potential timelines,” he stated. “We are now in a period of waiting for the scheme to be designed and implemented.”
“While this is clearly a step in the right direction, especially in comparison to the Horizon situation, we should not use Horizon as a benchmark. We had hoped that this would be an opportunity to expedite the Capture compensation process given the circumstances,” he added.
As his losses mounted due to the Capture software, Mr. Bowerman found himself borrowing money from his parents and ultimately selling his Post Office branch in Tredegar, Gwent, after being informed that his position was in jeopardy. Shortly thereafter, his friend, Steve Lewis, was dismissed from his position at a neighboring Post Office branch following an audit that revealed a loss.
Steve Lewis expressed his disappointment after the meeting, stating, “I was hoping for more definitive progress. It has been challenging to revisit these painful experiences over the past year.” He added, “At the next meeting in May, I hope to see some positive developments. It’s crucial to consider those who need exoneration, but there are many others waiting for some form of interim payment or compensation. A significant number of us are relying on benefits to get by.”
A spokesperson for the Department for Business and Trade commented, “Officials met with postmasters today as part of the Government’s commitment to develop a fair and effective redress process that considers the unique circumstances of those affected by Capture. Ensuring that postmasters are treated with dignity and respect is our utmost priority, and we will continue to provide updates on the development of the redress mechanism as it progresses.”
