Connect with us

Hi, what are you looking for?

Editor’s Pick

UK taxpayers to pay former Post Office workers up to £1bn compensation

UK taxpayers could have to pay as much as £1bn in compensation to former Post Office workers wrongly convicted of theft due to the defective Horizon IT system.

The system, which was installed by the Post Office and supplied by Fujitsu, falsely suggested there were cash shortfalls, leading to 736 unsafe convictions for theft, fraud and false accounting in what is one of the biggest miscarriages of justice in British legal history.

The Post Office has said it cannot afford to foot the huge cleanup bill for the scandal and last month the government, the service’s only shareholder, confirmed the taxpayer would step in.

This weekend new details of the potential magnitude of the compensation programme emerged.

The Post Office Scandal blog by the journalist Nick Wallis, who has written a book on the fiasco, reported that the Department for Business, Energy and Industrial Strategy (BEIS) has now made three grants available to the Post Office that total just over £1bn.

The most recent grant, made last month, was for £686m, and came on top of previous awards of £94m and £233m. In his post, first reported by the Sunday Times, Wallis said the figures involved meant the Post office Horizon IT disaster was now a “fully fledged £1bn scandal”.

Between 2000 and 2014, the Post Office prosecuted 736 post office operators based on information from a recently installed computer system called Horizon. Some of the workers were jailed following convictions for false accounting and theft, and many were financially ruined.

However, it was the software, which contained bugs, errors and defects, that had caused the problems, according to the high court judgment that quashed many of the convictions.

So far, the Post Office has offered compensation to 777 of the 2,500 subpostmasters who have applied. Those who had convictions overturned have been offered interim payments of £100,000 while their claims are assessed.

A spokesperson for BEIS said the subsidy figures were a “top estimate of what could be needed. It has not been spent and will only be given to the Post Office in arrears if and when required.”

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

Follow us on Spotify BusinessWorld B-Side The Filipino workforce is gradually adapting to a work environment that has been changed forever due to the pandemic....

News

The Department of Environment and Natural Resources (DENR) has given recognition to volunteers and partners who had significant contribution to the cleanup and rehabilitation...

News

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories...

News

Former client, Jennifer Pacquing on her experience with Planning for Canada services. Planning for Canada – Planifier pour le Canada (PfC) is pleased to...

News

Windmills are seen in Pililia, Teresa, Rizal province on April 25. — PHILIPPINE STAR/ MICHAEL VARCAS THE INCOMING Marcos administration should consider the full...

News

THE PHILIPPINE central bank should deliver more aggressive rate hikes in order to curb inflation that is now expected to reach 5% this year,...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Financial Advisors

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.