**Post Office to Pay Data Breach Victims Up To £5,000 Each in Compensation**
The Post Office is preparing to offer financial compensation to hundreds of former sub-postmasters and sub-postmistresses after an unintentional data breach exposed their sensitive personal details online. This move comes as the latest development in a saga which has seen the organisation mired in controversy following the widely publicised Horizon IT scandal.
The compensation scheme, as outlined by the Post Office, comes after the accidental publication of the names and addresses of 555 individuals on its website in June last year. Those affected were already victims of the Horizon miscarriage of justice—an episode that led to over 700 wrongful convictions for fraud, theft and false accounting across the UK, when in fact system errors were to blame for accounting discrepancies.
According to statements given to the BBC and seen by leading legal representatives for the victims, the compensation amounts will be either £5,000 or £3,500. The exact figure for each claimant depends on whether their current residential address was publicised at the time of the leak. The Post Office has clarified that while £5,000 is the general ceiling, some victims may have scope to seek higher settlements, depending on their individual circumstances.
In their official communication, the Post Office explained: “We have written to all named individuals either directly or through their legal representatives. If there are still individuals affected by last year’s breach who have not heard from us, they are encouraged to contact the Post Office or liaise with their solicitors.”
To date, law firm Freeths has confirmed that 348 of their clients impacted by the data breach have already received payment. Will Richmond-Coggan, a solicitor at Freeths, noted that while approving of the compensation process making progress, there remains a need for a more thorough recognition of the emotional and psychological damage caused by the situation.
One of those profoundly affected, former sub-postmaster Chris Head, commented on the lengthy response time by the Post Office, stating: “While it’s good that the data breach has finally been acknowledged, it shouldn’t have taken this long for affected individuals to receive justice. The emotional toll—anxiety, stress, and ongoing worry—cannot be understated. Many of us have endured a decade of trauma due to the Horizon affair, and this latest error has only made things worse.”
The saga was compounded when a public inquiry, the Post Office Horizon IT Inquiry, revealed that the financial shortfalls for which sub-postmasters had been prosecuted were the direct result of faults in the Horizon software, not dishonesty or mismanagement. This revelation prompted national outcry and has resulted in a swathe of compensation claims and overturned convictions.
Earlier this year, the Post Office further announced plans to reduce its workforce by approximately 100 jobs. Acting chief executive Neil Brocklehurst communicated to staff that this operational restructuring is intended to cut costs and redirect funds into compensation and support for sub-postmasters. The changes, he stated, aim to provide the Post Office with a “sustainable future,” while offering more robust support to the individuals and communities reliant on local branches.
These job reductions form part of a wider transformation plan, overseen by chairman Nigel Railton, which includes a £250 million increase in payments to sub-postmasters over five years. Additionally, the Post Office is seeking to offload 115 directly owned branches from its network of 11,500, as part of efforts to streamline operations and stabilise finances.
While compensation for the reckless exposure of personal data is a step in the right direction, those affected remain cautious about the pace and adequacy of the Post Office’s response. The events underscore the wider need for rigorous data protection and more transparent corporate accountability in the wake of one of the UK’s most significant miscarriages of justice in modern times.
The story of the sub-postmasters affected by both the Horizon scandal and the recent data breach continues to unfold, highlighting the immense challenge for public trust and the enduring consequence that such institutional failures have on individuals’ lives.