The government has announced plans to overturn the convictions of more than 900 people linked to the Post Office scandal. More than 4,000 people in total have been told they are eligible for compensation.
But the schemes they need to access in order to receive remuneration for their suffering can be long-winded and complicated. We’ve broken down how they work.
What are the main compensation schemes?
There isn’t a 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. They are explained in more detail in the following sections.
Which scheme is available to Alan Bates and others depicted in the ITV drama?
While the cohort secured a £42.5m settlement in 2019, the huge costs of going to the High Court meant each claimant received a relatively low compensation pay-out at the end of it.
The Group Litigation Order (GLO) scheme was set up to ensure they received extra money to reflect the gravity of their situations. The scheme is funded and managed by the government.
As of January, people eligible for this scheme “will receive at least £75,000 in compensation upfront”. The government estimates around two thirds will turn that offer down and push for more.
Of the 555 members of the GLO group, 63 had criminal convictions and are therefore are not eligible for this scheme.
ITV’s drama Alan Bates vs The Post Office has introduced millions to the long-running scandal
What compensation is there for people with overturned convictions?
There have been 983 convictions – 700 of which were privately initiated by the Post Office – linked to the faulty Horizon IT programme.
People whose convictions are quashed can apply to the Overturned Convictions scheme, whether or not they are in the GLO group.
Those 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 an “interim” payment of £163,000 while their final settlements are processed.
The government has provided funding to the Post Office for these payments.
More on the Post Office scandal
What about sub-postmasters who weren’t convicted?
The Post Office scandal goes far beyond the original GLO court case and the people who wound up with criminal convictions.
Fearing prosecution, some sub-postmasters poured their own savings into their businesses to make up losses which were incorrectly calculated by the computer programme.
The Horizon Shortfall Scheme is intended for those sub-postmasters who weren’t convicted or part of the GLO court action. It is administered by the Post Office.
The Post Office says current and former postmasters who believe they experienced shortfalls because of the Horizon system can apply to have their cases independently assessed, and possibly be compensated at the end of it.
It has received more than 2,700 eligible claims so far, according to data from the Department for Business and Trade.
How many people are eligible for compensation overall?
The number of people eligible for one of the three main schemes stands at over 4,000 – and the government has said new potential victims are still coming forward.
It is unclear how many of them will end up receiving payments, and the processes – which have been criticised by campaigners for being too slow – can sometimes take several years.
What about people who died before receiving compensation?
On 10 January, the postal affairs minister Kevin Hollinrake told the Commons the families of the 60 people who died before receiving any compensation will be able to apply for it in their place.
Watch: Post Office scandal victims share their stories with BBC
How much compensation has been paid out so far?
As of 1 December 2023, £138m has been paid to 2,700 claimants across the three schemes, according to government data – which includes interim payments for people whose full case has not been settled. That total breaks down as:
- Horizon Shortfall Scheme – £87m
- Group Litigation Order Scheme – £27m
- Overturned Convictions Scheme – £24m
The amount an individual sub-postmaster receives can vary greatly depending on the circumstances of their case.
Professor Chris Hodges, chair of the the independent Horizon Compensation Advisory Board, told the BBC compensation payments which have been made so far range from £10,000 to “well over £1m”.
The government has not provided an estimate for how much compensation will be paid out in total, but it will inevitably run into the hundreds of millions on top of what has already been paid.
