Jessy Edwards  |  December 28, 2021

Category: Labour & Employment

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Postal service, post office inside.
(Photo Credit: salarko/Shuttestock)

Post Office Wrongful Conviction Group Action Overview:

  • Who: The government could still owe hundreds of millions of pounds in compensation to postmasters who were wrongly accused, and sometimes convicted, of stealing due to a faulty computer system.
  • Why: While a civil claim filed by more than 500 falsely accused postmasters was settled for £58 million, the postmasters say £46 million went to legal costs so they may seek further action.
  • Where: The lawsuit is pending in the United Kingdom.

Postmasters who were falsely accused, and in some cases convicted, of stealing due to a system software fault will be seeking hundreds of millions of pounds more in compensation from the government, their representatives say.

On Dec. 14, the government said up to 72 falsely accused postmasters’ convictions had been quashed, and most had received interim compensation payments of up to £100,000. 

However, on the same day, representatives of up to 555 post office workers who previously settled their claims with the Post Office said they were considering further legal action, the Law Society Gazette reported

A civil claim filed by more than 500 falsely accused postmasters settled for £58 million. However, only £12 million of that settlement went to claimants, they say.

The settlement came after hundreds of sub-postmasters were falsely accused of stealing after the Post Office’s Horizon computer system created errors showing missing money. The postmasters were blamed for the system’s errors, resulting in terminations and even prosecutions. 

Falsely accused sub-postmasters say that they faced severe financial and legal consequences, including jail time.

Post Office Unable To Cover Payments So Government Will Pick Up Tab

On Dec. 14, the Business, Energy & Industrial Strategy committee of the House of Commons committee heard that victims’ claims would be nearer to £700,000 if they were made again.

The Post Office has said it is unable to cover the payments for the exonerated individuals. As the Post Office’s only shareholder, the government confirmed in a statement that it will pay.

Alan Bates, former subpostmaster and founder of the group Justice for Subpostmasters, said the postmasters had been strong-armed into a settlement, and that the posties needed the money at the time. 

“The plus side was that the claimants would at least receive something, albeit not a lot,” Bates said. “There were so many of them in dire straits, they were losing houses left, right and centre.” 

The announcement comes after the government initially resisted calls for a full public inquiry into the Horizon system scandal that was finally revealed in December of 2019. Findings into a newly expanded investigation into the situation are expected in 2022, along with an interim report.  

You may qualify for the Post Office Horizon group action if you are a current or former sub-postmaster who was falsely accused of wrongdoing due to the system’s mistakes. Click here to see if you qualify and learn how to file a claim.

Were you affected by the Horizon software scandal? Tell us about your experience in the comment section below.  


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