£1 Billion in Compensation: The Ongoing Fallout of the Post Office Horizon IT Scandal
Over £1 billion has been disbursed to victims of the Post Office Horizon IT scandal, according to recent government statistics. With a total of £1.039 billion allocated among 7,300 sub-postmasters through four separate compensation schemes, the Post Office Minister, Gareth Thomas, acknowledged the government’s commitment to expediently settle claims while emphasizing the need for fair compensation for all victims.
Compensation Schemes Overview
The path to compensation is not straightforward, as sub-postmasters have access to four main schemes, each catering to different victim experiences. Here’s how they break down:
Group Litigation Order (GLO) Scheme: Led by Alan Bates, this scheme resulted in a £42.5 million settlement for a cohort of 555 sub-postmasters after a landmark court case. The costs of litigation mean that payouts have been relatively low, averaging around £167 million paid under the GLO as of June 2025. For some defendants with convictions, alternative compensation routes exist.
Overturned Convictions Scheme: Associated with the 992 convictions due to unreliable data from the Horizon IT system, this scheme (with £68 million disbursed) compensates individuals whose convictions are overturned—either through court rulings or new legislation from May 2024.
Horizon Convictions Redress Scheme: For those whose convictions were uniformly overturned, individuals can opt for a fast-tracked settlement of £600,000 or negotiate for a larger amount. This scheme has seen £245 million deployed as interim payments.
Horizon Shortfall Scheme: Aimed at victims who were neither convicted nor part of the GLO, this has paid £559 million to over 6,000 sub-postmasters as of the last report. An independent appeals process was introduced to address concerns of under-compensation.
Broader Context and Future Considerations
The Welsh government has also initiated a Capture Redress Scheme for those affected by the earlier Capture IT system (1992-2000), set to launch in autumn 2025. Approximately £1.039 billion has been allocated across all schemes, with amounts for sub-postmasters varying significantly based on their unique circumstances. Claims have reportedly ranged from £10,000 to over £1 million.
As the Home Office continues its investigation, further compensation above this staggering figure is expected, highlighting the long-lasting effects of the scandal on individuals and families, some of whom suffered immensely, with 60 having died before obtaining any restitution. This complex compensation landscape presents ongoing challenges for many seeking just redress.