Ministers are facing mounting pressure to explain following allegations made by the former Post Office chairman, Henry Staunton, that he was instructed to delay compensation payments to victims of the Horizon IT scandal.
Staunton revealed to The Sunday Times that a senior civil servant had asked him to stall the payments, allowing the government to minimize its financial liability in the run-up to the election.
Staunton, who was appointed chairman in December 2022 but subsequently dismissed by business secretary Kemi Badenoch in January 2024, made these claims amidst widespread public outrage over the Horizon IT scandal, which wrongfully accused hundreds of Post Office workers of fraud.
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Jonathan Reynolds, Labour’s shadow business secretary, described Staunton’s allegations as “incredibly serious.” He emphasized that compensation to victims should never be delayed and any such delay for political purposes would be an additional insult to the sub-postmasters affected by the scandal.
Reynolds called for the exoneration of all sub-postmasters and swift compensation to bring closure to this distressing chapter.
Ed Davey, leader of the Liberal Democrats, echoed Reynolds’ concerns and demanded that Ministers come to Parliament and provide a detailed explanation of the events surrounding the scandal.
Davey emphasized the urgent need for swift and fair compensation for the victims, stating that it is the least they deserve.
Responding to the allegations, Michael Tomlinson, the illegal immigration minister, expressed his disagreement with Staunton being instructed to delay payments, stating that it is not something he accepts or recognizes.
Tomlinson emphasized the government’s encouragement for postmasters to come forward and claim the compensation they rightfully deserve.
Davey, who served as a business minister in the coalition, acknowledged his role in failing to prevent the scandal and expressed deep remorse for his actions. He stated that he is “deeply sorry” for the part he played in not addressing the issue.
The Horizon IT scandal involved the prosecution of over 700 Post Office workers for fraud and false accounting based on faulty data from the Post Office’s Fujitsu computer system between 2000 and 2015.
Many workers faced criminal records, community service, electronic tagging, or even imprisonment. Some sub-postmasters even attempted to cover the losses indicated by the Horizon system with their funds.
The Post Office, without the involvement of the police, conducted investigations and prosecutions. For years, the Post Office vehemently defended its accusations and dealt with inquiries regarding its management and IT system through legal channels, maintaining the robustness of the Horizon system and denying any monetary losses due to system faults.
The immense stress and financial ruin caused by the scandal resulted in severe health issues for many victims. Families were torn apart, and individuals were ostracized from their communities.
Tragically, at least four suicides have been linked to the scandal. A public inquiry is currently underway to investigate the Horizon IT scandal, which once again garnered attention during the Christmas period due to the ITV drama ‘Mr Bates vs the Post Office.’
