'We lost everything and ended up in a caravan after mum was wrongly accused of stealing'

Yahoo

27-07-2025

Katie Watson was a child when her mother was thrown out of the Post Office which had become her life. Fiona Watson, subpostmistress for the town in the late 1990s and early 2000s, was well-liked by customers, neighbours and the Post Office themselves who had awarded her modest business Post Office of the year in 2000.
They even chose her to be among the first group of Post Offices to pilot the Horizon IT system, daughter Katie, 34, explained from her home in Bridgend. Weeks into piloting the new system the auditors arrived and Fiona was suspended on suspicion of having her fingers in the till as her life began to unravel.
Weeks after that she was accused of taking tens of thousands of pounds from the Post Office and was ordered to repay the money which had disappeared. While she was under investigation she was diagnosed with terminal cancer.
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The Watsons sold their home which adjoined their Post Office and sweetshop in order to pay off the debt and they eventually ended up in a caravan after being ousted by suspicious locals. Fiona was 44 when she died in 2004 and never got to see her name cleared while Katie says her family have received a tiny 'interim payment' for what they all went through prior to a final settlement which has still not arrived.
The failings of the Horizon scandal - which was the fault of developer Fujitsu and the Post Office - and the resulting fallout has been well-documented, as has the fact hundreds of subpostmasters and subpostmistresses suffered unimaginable pain resulting in 13 of them taking their own lives. Now, through the group Lost Chances, their children are also coming forward to tell their stories and call for accountability and redress.
Earlier this month Sir Wyn Williams published the first volume of the Post Office inquiry's final report in which he acknowledged the 'very significant suffering' of relatives. He has advised in that report that a compensation scheme should be established for children embroiled in one of the biggest scandals in British history.
'Mum joined the Post Office as a subpostmistress in 1999,' Katie told WalesOnline. 'It was in the back end of 2001 when things began to go seriously wrong. Everything had been fine prior to then. She'd won an award for Post Office of the year and she was very good at her job. She was so good the Post Office decided she would pilot the first wave of new computers.
'Quite soon into this process they had an audit and soon after that mum had been accused of stealing. The accounts weren't balancing. The Post Office began to pull this 'evidence' together to accuse mum of stealing thousands of pounds even though she was an absolutely meticulous record keeper and would never have made such a mistake to lose that much money.
'Mum and dad couldn't afford to repay the debt without selling their house which was next door. During the investigation mum was diagnosed with terminal cancer and died before she received any answers as to what actually happened and why she had been accused.
'She died in 2004 aged just 44. Mum went to the grave convinced everyone thought she was guilty. Most of the locals did think she was guilty. Her neighbours, the Post Office, her friends, her colleagues, her customers, and even family doubted mum's version of events. The moment you're suspended you're not allowed back into your Post Office and for mum there was never an opportunity to get evidence to try to prove herself innocent.'
The Watsons lost everything the day they lost the Post Office. Things became financially 'impossible' for them while her mother was dying, Katie recalled.
'She was our main breadwinner and we lost our income and lost almost everything when we lost the Post Office. No money coming in meant we couldn't stock the shop so things became impossible. We ended up living in a caravan after paying the tens of thousands of pounds we 'owed' to the Post Office.'
Fiona, like hundreds of others, was told she was the only one and that she couldn't possibly have been right and the Post Office wrong.
'As she was one of the first that this happened to she also believed she was the only one, and she began to doubt herself,' Katie explained. 'I don't even think by the time she died she knew there were other people that had been accused of the same. When you've got a lot of professionals and a big company telling you we have proof you've taken that money, you start to think: 'Maybe I've done something wrong.'"
Paying tribute to her mother, Katie remembered: 'Mum was the glue that held our family together. She hosted all the parties, birthdays, trips away, she was never off the phone. She was a very hard worker and in her previous role in a newsagents she worked 364 days a year, only having Christmas Day off. Coming to the Post Office was about having a bit more family time because she would have Sundays off and the bank holidays off. She couldn't wait for that.'
But the dream the Watsons had created, with the quaint Post Office and sweet shop beside their home, turned into the scene of a nightmare. 'We had to leave the area over what happened at the Post Office. Mum had been blacklisted there while dad was guilty by association," Katie said.
'It had become a volatile place for us. People who had come into the Post Office to chat with mum about all sorts of stuff were now against her. We left, I had to change schools, I left all my friends behind and quit my clubs. After mum passed away, we moved into a caravan on a site beside a pub and I worked in the pub on nights and weekends to make ends meet to help out my dad following my mum's death. I was just 14 at the time of starting work.'
What happened to her family as a result of the Horizon scandal not only stole from Katie a chance at a normal childhood but also the education she wanted and deserved. She never had the opportunity to go to college and get the qualifications to realise her aspirations she held as a young girl. She now works seven days a week - in financial services in Cardiff on weekdays and as a carer at the weekend.
'I never got the education I wanted because I had to work to increase the family income,' she said. 'Only now in my life am I having the opportunity to do anything education wise. Not having the opportunity for that earlier in my life has had a huge knock-on effect. I had my life mapped out and then everything had to change. How can you quantify the damage caused? I had my education ripped away because of this. It's affected my whole life.
'It's so important for children and close relatives of victims to have a voice. Our experiences are different but also collectively the same. If me speaking out gives others the courage to tell their stories then that's important for me. Collectively we can change things.'
Katie Burrows, vice chairwoman of Lost Chances and whose mother Elaine Hood also lost thousands when she was wrongly prosecuted and subsequently convicted of theft from the Post Office in 2003, is representing hundreds of children like Katie.
She said: "Lost Chances stands in solidarity with the Watson family and all the families affected by the Post Office Horizon scandal, a painful chapter in British history that has left countless lives shattered. Katie Watson's testimony is a powerful reminder of the deep and lasting impact of systemic failures, not just on the subpostmasters and subpostmistresses, but also on their children and loved ones.
"Fiona Watson's tragic experience highlights the urgent need for accountability and justice. As a dedicated and well-respected subpostmistress, she became a victim of circumstances beyond her control. Her struggle against unfounded accusations and the devastating consequences that followed are stories we hear too often—stories of lost livelihoods, shattered families, and dreams unfulfilled.
"We acknowledge the findings in Sir Wyn Williams' report, which recognises the 'very significant suffering' endured by families and advises the establishment of a compensation scheme for children impacted by this scandal. It is imperative that children's voices are heard and experiences validated as we navigate the long-term repercussions of our parents' unjust treatment.
"We are pleased to be working with the government to expedite the process of compensation and ensure that all victims and their families receive the justice they deserve. Our mission at Lost Chances is to amplify these voices, encourage healing and empowerment, and work tirelessly to protect children involved in future miscarriage of justice cases. Together we can promote change and find some good come from all of this."
Not too far from Katie Watson's home is Alun Lloyd Jones who lives in the village of Llanfarian outside Aberystwyth. Ex-subpostmaster Alun, who was a county councillor and was chairing meetings of the local police and crime commission at the time he was accused of stealing from the Post Office, said he lost everything. His daughter also died before she could see her father's name cleared.
Alun, 79, who has also been campaigning for some time for children embroiled in the scandal to not only receive compensation but mental support for what they went through, said: "The story of the Watson family is harrowing and I was very sad to hear about it, and yet what is so shocking and so sad about it is that it is not uncommon. It is a story I have heard again and again about how this scandal ruined people's lives and it did the same to my family.
"My family went through hell. My wife's nerves are still not good, they've been shattered. It's what it does to your mind. It never leaves you.
"I do feel to some degree it's now too late for my family. But I do firmly believe compensation must go to families like the Watsons who absolutely deserve it and are owed it. Families across the UK need the help financially but also in many cases they need support. It shouldn't be down to organisations like Lost Chances.
"All power to Lost Chances who are doing everything they can to organise action and to keep pushing. I would like to make a plea to the public to please support them if you can. I can't think of a worthier cause."
Post Office chairman Nigel Railton said: 'I would like to make a clear and unequivocal apology to every single person affected by this scandal on behalf of Post Office. The Horizon Scandal is not one event.
"Lots of people made choices over two decades which caused serious harm to so many people. Post Office did not listen to postmasters and, as an organisation, we let them down. Postmasters and their families have suffered years of pain. It has taken them too long to clear their names and, in many cases, to receive redress.
"I welcome Sir Wyn Williams' report, and I am grateful to those postmasters who gave evidence to the Inquiry. It is through their personal stories that we understand the human impact of this scandal. I will do everything in my power to make sure that affected postmasters receive the redress they are entitled to, as soon as possible. Post Office will carefully review the report and provide a full response to the inquiry by October 10, 2025, as requested by Sir Wyn.'
A spokesperson for Fujitsu said: 'We have apologised for and deeply regret our role in subpostmasters' suffering. We hope for a swift resolution that ensures a just outcome for the victims. We are considering the recommendations set out by Sir Wyn in Volume One of the Inquiry's report, and are engaged with government regarding Fujitsu's contribution to compensation.'
Lost Chances relies entirely on fundraising. If you would like to donate to their cause to help families like the Watsons, you can visit their page here.