The Post Office has spent £132 million of taxpayer money defending itself at the inquiry into the wrongful convictions of hundreds of sub-postmasters, according to its latest annual report.
The staggering figure reflects the legal and operational costs incurred until March 31, 2024, during the two-and-a-half years of evidence hearings. However, the total does not include expenses incurred after that date.
Post Office Chairman Nigel Railton acknowledged the gravity of the situation, stating that the organisation was “learning from the serious failings of the past.”
The inquiry examines the fallout from the flawed Fujitsu Horizon IT system, which led to over 900 sub-postmasters being wrongfully prosecuted for accounting shortfalls. The scandal has been described as one of the UK’s most extensive miscarriages of justice, with devastating consequences for those affected. Many lost their livelihoods or were forced to cover the discrepancies personally, while some tragically took their own lives.
The Post Office’s provision for “exceptional expenses” in the year leading up to March 31, 2024, totals £816 million. This includes legal costs, operational expenses, and funds allocated for compensation and overturned convictions. However, concerns remain about the pace and adequacy of compensation payments.
While some sub-postmasters are yet to receive compensation, others, such as campaigner Sir Alan Bates, argue the amounts offered fall short of what is deserved.
Legal and operational costs have surged as the inquiry progressed, climbing from £12 million in the first year to £38 million in the second, and peaking at £82 million in the most recent year.
These costs have significantly impacted the Post Office’s financial health, with pre-tax losses ballooning to £612 million, up from £81 million the previous year. The organisation’s debt has also surpassed the total value of its assets.
As the evidence hearings concluded and final statements were submitted this week, Railton noted that the organisation still had “much to learn and to embed into our organisation culturally.”
Outgoing CEO Nick Read, who resigned in September amid scrutiny of the Post Office’s handling of the scandal, remarked that the pace of compensation payments is expected to accelerate in the new year. However, he acknowledged, “no amount of financial redress can replace what has been lost to victims.”
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