Northern Ireland

£19.5 million interim compensation scheme opens for falsely accused Post Office staff in Horizon IT scandal

Over 700 sub-postmaster across the UK were accused of being responsible for 'missing' money at branches. The shortfalls were actually the result of a faulty IT system. Picture by Rui Vieira/PA Wire.
Over 700 sub-postmaster across the UK were accused of being responsible for 'missing' money at branches. The shortfalls were actually the result of a faulty IT system. Picture by Rui Vieira/PA Wire. Over 700 sub-postmaster across the UK were accused of being responsible for 'missing' money at branches. The shortfalls were actually the result of a faulty IT system. Picture by Rui Vieira/PA Wire.

POST Office staff who helped uncover a scandal in which an IT system failure led to postmasters being falsely accused of stealing money are to share in a new £19.5 million compensation scheme.

The faulty Horizon IT system, introduced by the Post Office in 1999, led to shortfalls in the accounts of branches across the UK.

As a result of the errors over 700 sub-postmasters were accused of being responsible for missing funds, with many wrongfully prosecuted for theft and false accounting between 1999 and 2015.

Among those accused was Co Tyrone postmaster Deirdre Connolly, who took over a post office and shop in Killeter in 2006.

She was suspended from her role in 2010 when an audit found £16,000 was missing - later reduced to £15,000.

Ms Connolly told a public inquiry into the scandal in May that the false accusation sparked by the IT error led to her being diagnosed with epilepsy as a result of stress.

She said she was made bankrupt in 2013 as people avoided coming into her shop following the accusation.

Ms Connolly, who gave the Post Office £15,000 after remortgaging her home, said she had been grilled by superiors about the money, who had asked her if she had taken it for paramilitaries. She said her mental health "will never be the same again" as a result of her ordeal.

In 2019, postmasters who had taken legal action against the Post Office received £43 million plus legal costs in a settlement.

Most of the money was used up for their legal costs however, while they were also ineligible for the Historical Shortfall Scheme that was subsequently set up to compensate other affected postmasters.

Now the UK's Department for Business, Energy and Industrial Strategy has announced a new interim compensation package for those affected in that initial group who took legal action, while it finalises a new scheme, first announced in March, to ensure the group "does not lose out".

Postal affairs minister Paul Scully said: "These postmasters and their families have shown immense courage in the face of terrible circumstances.

"I hope this initial step provides some comfort to these pioneering postmasters while reaffirming our commitment to ensuring they receive their fair share in compensation."