Labour MP Liam Byrne has called for the Post Office to be removed from its role in administering redress schemes for victims of the Horizon scandal, citing concerns over inefficiencies and escalating legal costs. Despite a budget of £1.8 billion, only £499 million has been paid to victims so far.
The Commons Business and Trade Committee has also criticised the slow pace of compensation payouts. In its latest report, released on the anniversary of the ITV drama Mr Bates Vs The Post Office, the committee highlighted that the schemes remain “poorly designed” and payments are still “not fast enough.” Approximately 14% of applicants to the Horizon Shortfall Scheme (HSS) from before the original 2020 deadline are yet to have their claims settled.
Mounting legal costs
The committee expressed frustration over the legal fees being paid to administer the schemes. So far, £136 million—27% of the compensation amount disbursed—has been spent on legal fees. Law firm Herbert Smith Freehills alone has received £82 million for its role in the HSS and overturned convictions schemes.
Mr Byrne said: “The legal bill appears to be racking up all the time, so the whole thing is just, frankly, out of control. When you’ve got so much being paid to lawyers and so little being paid to victims, there’s only one conclusion you can draw: the system isn’t working and needs to change.”
Calls for greater transparency
Mr Byrne called for clear monthly reports from the Post Office on legal expenditures, suggesting that transparency could create accountability and incentives to resolve cases faster. He criticised the current setup, stating: “If lawyers don’t have a budget to work within, it’s obviously in their interest to string the cases out.”
The committee has recommended removing the Post Office from the redress process entirely—a step the company has indicated it would not oppose. The government, however, previously rejected this idea, citing the costs and delays of establishing a new scheme.
Concerns about post office culture
Beyond administrative inefficiencies, the committee highlighted ongoing cultural issues within the Post Office, including a lingering “culture of disbelief” toward sub-postmasters. Mr Byrne noted that investigators involved in prosecuting innocent victims during the Horizon scandal are still employed by the Post Office, undermining trust in the organisation’s ability to administer redress schemes effectively.
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Justice delayed
Mr Byrne condemned the slow progress, stressing that victims are passing away before receiving justice. “We just think the Post Office has lost its grip on this,” he said. “It’s not the right organisation to be running these schemes.”
The committee also called for sub-postmasters to receive free legal advice to help navigate the complex claims process. It reiterated its demand for legally binding timeframes with financial penalties for delays—a proposal previously rejected by the government.
Government and post office responses
A government spokesperson defended its efforts, stating: “We are settling claims at a faster rate than ever before, with almost £500 million paid to over 3,300 claimants as of November. We will respond to the Committee’s report in due course.”
Herbert Smith Freehills also justified its fees, describing the work as “highly complex and wide-ranging” and asserting that its charges align with industry norms.
The Post Office, while pledging to accelerate payouts, reiterated its support for transferring redress schemes to the government. A spokesperson noted: “Our chair said at the public inquiry in October that redress schemes administered by us should be transferred to the Government, and we will support any decisions they may take in this regard.”
Conclusion
As criticism mounts, the future of the Horizon redress schemes hangs in the balance. With escalating costs, slow progress, and persistent cultural issues, calls for a fundamental overhaul of the system are growing louder. MPs and campaigners argue that only a significant change in administration can ensure victims of the Horizon scandal receive the justice they deserve.
