Horizon scandal factsheet: Post Office (Horizon System) Offences Bill
Updated 8 May 2024
Applies to England, Northern Ireland and Wales
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The background of the Horizon Scandal
In 1996 the Post Office piloted new Horizon software in some of its branches. This software was introduced across the network of branches in 2000.The software had faults which meant that some subpostmasters’ accounts showed false shortfalls. The Post Office obliged subpostmasters to “repay” these false shortfalls and many were wrongfully convicted of offences such as theft, fraud, false accounting.
In 2016 a group of 555 people took the Post Office to the High Court in March 2017 (the Group Litigation Order court case). This legal action culminated in 2 major judgments which were very critical of the Post Office’s software, its contracts with postmasters and its general behaviour
Some subpostmasters and others were suspended and/or dismissed. Others were prosecuted for dishonesty offences; some were convicted and imprisoned. Some were made bankrupt. Some lost their homes. Some suffered mental or physical health problems as a result of their treatment or of the financial consequences. Some were harried as thieves by their local communities. Some suffered breakdowns in relationships with their partners, children or other families and friends. Several died by suicide.
In April 2021 the Court of Appeal overturned the convictions of 39 postmasters whose cases had been referred by the Criminal Cases Review Commission (CCRC). Further convictions have since been overturned, taking the total to 102. The government subsequently announced the launch of a judicial inquiry into the scandal, which was upgraded to a statutory inquiry in June 2021.
On 10 January 2024, the Prime Minister announced that the government will introduce new primary legislation to make sure that those convicted as a result of the Horizon scandal, have their convictions swiftly quashed and can be compensated.
Supporting the victims
The government is working hard to process full, fair and final claims for compensation as quickly as possible.
We have made interim payments available to Group Litigation Order members and those with overturned convictions while their full claims are being processed.
All of the main group of Horizon Shortfall scheme claimants have already had initial compensation offers.
To speed up the compensation process for people with overturned convictions who have smaller claims, we have made an optional fixed sum offer of £600,000 which leads to rapid and simple redress. Anyone who prefers to do so can still have their claim assessed individually. As of 5 March, 35 full and final settlements have been reached in this scheme.
More information on financial redress can be found on the financial redress fact sheet.
We have also set up the statutory inquiry to find out what went wrong.
Ensuring this does not happen again
The government has set up the Post Office Horizon IT Inquiry, chaired by Sir Wyn Williams. The inquiry is undertaking an exhaustive examination of the evidence about the scandal. It has the power to require evidence from all parties. Government, the Post Office and others are cooperating fully with it. Evidence and recordings of oral hearings are posted on its website. It plans to continue to take oral evidence until autumn 2024.
Since the Group Litigation Order court case, government has taken steps to strengthen its oversight of the Post Office. This has included creating a Post Office Policy team within the department which works closely with UK Government Investments (UKGI) in advising ministers on holding the Post Office to account.
The government strengthened and formalised the respective responsibilities of the Post Office, government and UKGI through a framework document published in 2020.