Time is Money: MPs Push for Financial Penalties to Speed Up Post Office Scandal Compensation
A group of MPs has expressed concern over the slow compensation payouts to victims of the Post Office scandal, advocating for financial penalties against the government if delays continue. The Business and Trade Select Committee called for binding deadlines for compensation claims, with funds from missed deadlines directly benefiting the claimants. They proposed removing the Post Office from its role in the compensation process to enhance transparency and efficiency, especially regarding legal fees, which have reportedly grossed millions for lawyers while claimants wait for resolution.
The scandal stems from the faulty Horizon accounting system, which wrongfully led to the prosecution and conviction of hundreds of sub-postmasters between 1999 and 2015, resulting in financial ruin for many, wrongful imprisonments, and even deaths. Seema Misra, who was wrongfully imprisoned while pregnant, expressed the ongoing impact of the scandal during a recent interview, highlighting its unresolved nature.
Amid growing public scrutiny—exacerbated by a dramatization of the scandal on ITV—the committee’s findings indicated that 72% of the allocated £1.8 billion for compensation remains unpaid. They deemed the existing compensation schemes to be inadequately designed, imposing what victims described as a second trial through the application process. The report’s suggestions include providing upfront legal advice for victims and enforcing hard deadlines to expedite claims.
The Post Office stated its commitment to speeding up the payout process and acknowledged the need for potential changes in responsibility for administering the schemes. The latest discussions suggest a Labour government might take over these responsibilities, aiming to alleviate legal costs which currently consume a significant portion of the payout funds. The recommendations from the MPs echo previous calls for reform that had been ignored by the former Tory government, emphasizing a need for accountability and timely justice for victims.