Latest news with #SirAlanBates
The Independent
19 hours ago
- Business
- The Independent
More than £1 billion paid to those wronged by Horizon scandal, Government says
More than £1 billion has been paid in financial redress to subpostmasters wronged by the Horizon IT scandal, the Government has said. The Department for Business and Trade (DBT) said money has now been paid out to more than 7,300 subpostmasters across all Horizon-related redress schemes. The announcement comes just weeks after lead campaigner and former subpostmaster Sir Alan Bates said the schemes had 'turned into quasi-kangaroo courts'. Sir Alan told the Sunday Times last month that DBT 'sits in judgement of the claims and alters the goal posts as and when it chooses'. Between 1999 and 2015, more than 900 subpostmasters were prosecuted after faulty Horizon accounting software made it look as though money was missing from their accounts. Many are still awaiting compensation. In figures published on Monday, DBT said £559 million has been paid out to 6,337 claimants from the Horizon shortfall scheme. The data also says that of the 555 people who joined Sir Alan Bates in taking the Post Office to court between 2017 and 2019, also known as the Group Litigation Order Scheme (GLO), 488 have received £167 million between them. Elsewhere, £245 million has been paid out to 463 subpostmasters who had their convictions quashed by legislation put in place last summer, and £68 million has been paid to those who have had their convictions quashed in the courts, DBT said. Post Office minister Gareth Thomas said: 'Since entering Government, it has been our priority to speed up the delivery of compensation to victims of the Horizon scandal and today's milestone shows how much progress has been made. 'We are settling cases every day and getting compensation out more quickly for the most complex cases, but the job isn't done until every postmaster has received fair and just redress.' Post Office chief executive Neil Brocklehurst said: 'I welcome the news that over £1 billion has been paid to victims of the Horizon IT Scandal. 'Each week we are seeing more people receive their final settlements so they can begin to look beyond this painful chapter of their lives. 'However, I am also aware that more work remains to be done so that all victims receive full redress as quickly as possible and this is an absolute priority for the Post Office. 'And finally, to anyone else who thinks they may have been affected, I encourage you to come forward and apply for redress.'
Times
2 days ago
- Business
- Times
Post Office victims offered ‘pathetic' payouts: 0.5% of their claims
Dozens of postmasters caught up in the Post Office Horizon scandal have been offered compensation of just a fraction of their original claims, according to a forensic accountant working on their cases. Kay Linnell, a former chief investigating accountant at the Inland Revenue, now HM Revenue & Customs, described the offers made to victims as 'pathetic' and argued that the compensation schemes seemed 'designed to fail'. She is aware of about 30 subpostmasters who have received offers of between half a per cent and 15 per cent of their original claim. While many are reluctant to speak out while their claims are still being processed, The Sunday Times has been told of one former subpostmistress who has been offered just 0.56 per cent of what she believed she was entitled to. Linnell, 70, has been fighting alongside Sir Alan Bates for 12 years to secure justice for hundreds of subpostmasters who were wrongly fired and prosecuted by the Post Office due to financial shortfalls in their branch accounts. Those shortfalls were found to be the fault of the Horizon IT system — yet the Post Office continued to prosecute victims even after it was alerted to potential problems. Linnell, who was appointed OBE in January for services to justice, worked with Bates's Justice For Subpostmasters Alliance (JFSA) free of charge and was one of the figures portrayed in the ITV drama series Mr Bates vs the Post Office. She became involved through her business partner, Barbara Jeremiah, who got to know Jo Hamilton, one of the most high-profile victims, because she bought lunch at her Post Office in their small Hampshire village every day on her way to work. More recently, Linnell has been helping with compensation claims for the 555 subpostmasters who secured a High Court ruling against the Post Office in 2019. They are eligible for compensation via the group litigation order (GLO) scheme, which is one of four schemes being administered by the Department for Business and Trade. Claimants can opt for a fixed sum of £75,000 or to seek an individual settlement of their losses, likely to require a higher payout. The claims are initially assessed by the business department but if there are disputes the cases can be referred to an independent panel for review and ultimately to the independent reviewer, who is a retired High Court judge. As of March, 282 of the 446 claims made had been paid, although 155 of those settled accepted the £75,000 fixed payment. However, growing numbers of subpostmasters believe the scheme is denying them the compensation they deserve. Last month, Bates said the government had turned it into a 'quasi kangaroo court', and assurances that the scheme would be 'non-legalistic' had turned out to be 'worthless'. Officials have been demanding documents from claimants that many had lost years ago. Bates also revealed he had been presented with a 'take it or leave it' offer amounting to less than half his original claim. Linnell said she had been contacted by about 45 to 50 claimants whose offers appeared to be 'substantially undervalued'. She added about 30 of those had received offers worth less than one sixth of their claim, adding these were the cases 'I get most upset about'. Linnell said that 'when you boil down the patheticness of the offers', they were the result of the scheme administrators putting a much lower value on the loss of investments that subpostmasters suffered when they were forced to sell assets to cover their account shortfalls. She added that a similar approach was being taken towards loss of future earnings — the amount subpostmasters should be compensated for losing their livelihoods. Linnell cited the case of one subpostmistress who has been offered 0.56 per cent of her claim. While the woman wishes to remain anonymous, she became a victim of the Horizon scandal shortly after purchasing a small Post Office branch that had generated low profits under the previous owner. She took out a substantial bank loan to add a café and shop. However, when the branch reopened after renovations, she was unable to pay suppliers because the Post Office had taken funds to recoup shortfall losses that were, in fact, the result of Horizon. This forced her to close the branch just six weeks later, at which point the bank demanded full repayment of her loan. The former subpostmistress contacted Linnell when putting together her compensation claim. 'Her claim had gone through all the checks Alan and I agreed should be in place, before the department started moving the goalposts,' Linnell said. 'It came back with an offer that was so pathetic.' Linnell said the dispute arose because the officials assessing her claim did 'not accept her trading and profit forecasts'. Instead, they cited the previous owner's revenue streams, despite the fact that the investments made by the subpostmistress would have meant that the business probably would have generated higher returns in future. 'I've gone back to her lawyers and suggested they submit the business plan that the bank happily accepted when issuing the loan,' Linnell said. Linnell, like Bates, believes the GLO scheme has become overly bureaucratic and legalistic, pointing out that three law firms are involved in the process. 'This is a pro bono scheme, it doesn't need to be following strict legal principles,' she said. She also believes that despite promises made by ministers, the officials involved in the schemes are attempting to reduce the total amount paid out in compensation. Labour has set aside £1.8 billion to settle claims. Linnell added: 'They are finding every legal loophole they can think of, under civil litigation rules, not to pay. It's designed to fail. What they are trying to do is to keep a handle on cashflow.' The government disputes this characterisation. A Department for Business and Trade spokesman said: 'We recognise the suffering that sub-postmasters have endured, which is why this government developed our compensation arrangement in discussion with Sir Alan Bates as well as Dr Kay Linnell and their lawyers, with £964 million having now been paid to over 6,800 claimants across all the Horizon schemes. 'Victims who are unhappy with their offer have access to legal support and an independent panel to review their claim.'
Daily Mail
3 days ago
- Business
- Daily Mail
Post Office compensation chief steps down after Sir Alan Bates raised 'serious concerns' about schemes
A Post Office boss who backed compensation for Horizon IT scandal victims has left his position as Sir Alan Bates raised 'serious concerns' about schemes. Leader of the Post Office's Remediation Unit, Simon Recaldin, is believed to have opted for voluntary redundancy and left his post this week. It comes as the first part of a public inquiry report into the controversy, analysing the compensation process as well as the affect on victims, is anticipated to be released in the coming weeks. More than 900 sub-postmasters were prosecuted between 1999 and 2015 after faulty accounting software made it look as though money was missing from their accounts. Hundreds are still waiting for payouts despite the previous government announcing that those who have had convictions quashed are eligible for £600,000. A Post Office spokesperson said yesterday Mr Recaldin's departure was a part of an 'organisational design exercise' across the firm. Now Joanne Hanley, who was previously a managing director and global head of client servicing, data and operations for Lloyds', is understood to have taken up a large portion of the former Post Office chief, according to The Telegraph. It comes as Post Office hero Sir Alan Bates accused the government of running a 'quasi kangaroo court' payout system for the scandal's victims last month. More recently, Sir Alan said he would prefer to see the compensation schemes thrown out rather the people working on them. 'We have got serious concerns about the transparency and the parity across the schemes,' he told The Telegraph. Last November, Mr Recaldin giving evidence to the inquiry, apologised after it was unearthed staff who were managing compensation claims had also been embroiled in prosecutions relating to the scandal. When queried about ex Post Office investigators he said: 'So my regret – and it is a genuine regret – is that when I came in, in January 2022, that I didn't do that conflicts check, check back on my inherited team, and challenge that.' It comes as the Sir Alan, who famously won his High Court battle with the Post Office in 2019 revealed that he had been handed a 'take it or leave it' compensation offer of less than half his original claim. Mr Bates, 70, said the first offer, made in January last year, was just one sixth of what he was asking for, adding that it rose to a third in the second offer. He has now been given a 'final take it or leave it offer' - which he said amounts to 49.2 per cent of his original claim. He, alongside 500 other sub-postmasters, will now have to lodge their bid for compensation via the Group Litigation order, managed by the Government. Bates, who led the sub-postmasters' campaign for justice, attacked the government for reneging on assurances given when the compensation schemes were set up The Post Office currently manages the Horizon Shortfall Scheme, which is seperate to the aforementioned. This scheme was organised for victims who have not been compensated but believe they experienced financial loses due to the IT scandal. A Post Office spokesman said: 'As part of the Post Office's commitment to deliver a 'new deal for postmasters', we have undertaken a review of our operating model to ensure we have the right structure in place. 'We have been in consultation with a number of colleagues from across the business, including the Remediation Unit. As a result of this Post Office-wide organisational design exercise, Simon Recaldin has left the business.'
Telegraph
4 days ago
- Business
- Telegraph
Post Office compensation chief let go after criticism by Sir Alan Bates
The Post Office director responsible for compensating victims of the Horizon scandal has been let go amid criticism of the process by Sir Alan Bates, The Telegraph can disclose. Simon Recaldin, who headed up the Post Office 's Remediation Unit, is understood to have taken voluntary redundancy and left the organisation earlier this week. His departure comes ahead of the expected publication of the first part of a public inquiry report into the scandal, which will examine the compensation process and the impact on victims. Sir Alan, whose efforts to uncover the truth about Horizon, featured in an acclaimed ITV drama, criticised the overall compensation process last month and accused the Government of presiding over a 'quasi kangaroo court'. On Friday, a Post Office spokesman said Mr Recaldin's departure was a result of a review of its operating model and a subsequent 'Post Office-wide organisational design exercise'. The Telegraph understands that Joanne Hanley, who worked at Lloyds Banking Group for more than 20 years, is now covering a large part of Mr Recaldin's previous work. Before leaving for the Post Office, Ms Hanley was a managing director and global head of client servicing, data and operations for Lloyds' corporate markets. More than 900 sub-postmasters were wrongfully prosecuted between 1999 and 2015, when Fujitsu's faulty Horizon software incorrectly suggested that they were stealing money. A public inquiry into the scandal finished hearing evidence in December 2024 and the first part of the report is expected to be published in the coming weeks. Sir Alan has been highly critical of the various compensation schemes, which he described as 'quasi-kangaroo courts' in The Sunday Times last month. Speaking to The Telegraph on Friday, Sir Alan said: 'It's not so much as throwing out the people working on the scheme, it's more about throwing out the schemes – that would be my preference. 'We have got serious concerns about the transparency and the parity across the schemes.' Sir Alan, who won a High Court battle against the Post Office in 2019, said his latest compensation offer was on a 'take it or leave it' basis and amounted to less than half of his original claim. The campaigner and more than 500 other sub-postmasters who joined him in a court action have to apply for compensation through the Group Litigation Order scheme, now administered by the Government. Separately, the Post Office runs the Horizon Shortfall Scheme, set up for victims who were neither involved in the compensation scheme nor convicted as a result of false shortfalls. Mr Recaldin, who attended the inquiry for the second time in November last year to give evidence in its final phase, apologised when it emerged that staff involved in Horizon prosecutions were given jobs managing compensation claims. A former NatWest and Royal Bank of Scotland manager, he took on the position as head of the then-Historical Matters Business Unit in January 2022. When asked about former Post Office investigators, he told the inquiry: 'So my regret – and it is a genuine regret – is that when I came in, in January 2022, that I didn't do that conflicts check, check back on my inherited team, and challenge that. 'And that I absolutely apologise for, because I think that's something that should have been done.' A Post Office spokesman said: 'As part of the Post Office's commitment to deliver a 'new deal for postmasters', we have undertaken a review of our operating model, to ensure we have the right structure in place. 'We have been in consultation with a number of colleagues from across the business, including the Remediation Unit. As a result of this Post Office-wide organisational design exercise, Simon Recaldin has left the business.'
BBC News
27-05-2025
- Business
- BBC News
Post Office payouts 'not by kangaroo court', says oversight body
Compensation for sub-postmasters is not being decided by a "kangaroo court", the body overseeing the payouts has said, pushing back against allegations made by Sir Alan Bates. Sir Alan, who led the campaign for justice, said he had been made a "take it or leave it" offer that was less than half the amount he was "goal posts" had moved and claims had been "knocked back", he said, in ways he saw as unfair to sub-postmasters, many of whom have been waiting years for the Horizon Compensation Advisory Board has rejected his criticism, saying it was following a process agreed by Sir Alan, designed to resolve the outstanding cases. Writing in the Sunday Times, Sir Alan had suggested the process was not following established standards, describing it as a "quasi-kangaroo court".The board, made up of parliamentarians and academics, issued a statement on Tuesday saying: "We do not agree [with the criticisms]."It said Sir Alan had been "closely involved" in setting up the process for deciding compensation, which included a final assessment from a "highly respected" judge."That was what happened in Sir Alan's case," the board said. "It is only a 'take it or leave it' decision in the sense that at some stage the matter has to come to an end and someone has to decide, in order to bring fair closure to so many who have been harmed." Between 1999 and 2015, more than 900 sub-postmasters were wrongly prosecuted after the faulty Horizon IT system indicated shortfalls in Post Office branch Alan led a group of 555 sub-postmasters who took part in the landmark group legal action against the Post fight for justice was brought to wider public attention last year by an ITV drama about the scandal, Mr Bates vs The Post government went on to set up a specific compensation fund to ensure these sub-postmasters received extra money to reflect the gravity of their situations, but progress has been described as slow and many are still waiting for a the Group Litigation Order (GLO) scheme, claimants can either receive £75,000 or seek their own Alan said the latest offer made to him amounted to 49.2% of his original said promises that compensation schemes would be "non-legalistic" had turned out to be "worthless".
