Post Office Faces £132 Million Legal Bill Amid Miscarriage of Justice Inquiry

The Post Office has incurred a staggering £132 million in legal costs defending itself during the inquiry into the wrongful convictions of hundreds of sub-postmasters. This figure, disclosed in the Post Office’s annual report, accounts for expenditures up until 31 March 2024 and excludes any costs incurred after that date.

This inquiry followed a troubling saga in which over 900 sub-postmasters were wrongfully prosecuted for financial discrepancies attributed to Fujitsu’s Horizon IT system, a situation now recognized as one of the most extensive miscarriages of justice in British legal history. Many sub-postmasters endured severe consequences, including job losses, financial ruin, and even tragic outcomes, with some individuals taking their own lives due to the stress of their wrongful convictions.

In light of these events, the Post Office’s chairman, Nigel Railton, asserted that the organization is now committed to learning from the past. However, the released financial details highlight the ongoing burden of legal and compensatory costs on the Post Office’s finances. For the financial year ending 31 March 2024, the company has provisioned a total of £816 million for exceptional expenses, which encompasses both the legal fees and compensation for those wrongfully convicted.

The rising legal costs reflect the escalating nature of the inquiry, with the Post Office spending £82 million in the past year alone, compared to £38 million the year before and £12 million two years ago. This troubling financial strain is underscored by a widening pre-tax loss of £612 million, starkly up from £81 million the prior year, with debts exceeding the total value of the organization’s assets.

Despite the financial commitments, many sub-postmasters report delays in receiving compensation. Individuals like Sir Alan Bates have criticized the compensation offerings, deeming them insufficient. The organization’s leadership, including Nick Read, who recently resigned and waived his bonus, acknowledges that while they are working to expedite compensation payments, “no amount of financial redress can replace what has been lost to victims.”

As the inquiry concludes its two-and-a-half-year hearings, Railton emphasizes the need for cultural change within the organization as they aim to move forward into a more accountable future.