‘Not fit for purpose’: MPs say Post Office in ‘utter disarray’ and Horizon should be removed

MPs have said the Post Office is in “utter disarray” and called for the Horizon IT redress scheme to be removed from the organisation.

The firm is “not fit for purpose” to administer compensation to the subpostmasters and postmistresses wrongfully convicted under the scandal which saw hundreds of innocent people prosecuted over alleged faulty accounting – caused by faulty Fujitsu software. 

A new report by the Business and Trade Committee (BRC) calls for the “abject failure” of delivering compensation payments to end and for the Post Office to be relieved of the job. 

Ministers should instead create an independent intermediary offering legal and accounting services to ensure victims are equipped to secure fair redress and compensation.

Chairman Liam Byrne said the delays in issuing compensation were a “national disgrace”, adding: “Justice delayed is justice denied. Bluntly, justice has been denied to our innocent subpostmasters for far too long. 

“It’s high time for the circus of recent weeks to end and for cheques to start landing on the doormats of innocent victims.”

Byrne called for a legally-binding ‘Mr Bates’ test – named after campaigner Alan Bates played by Toby Jones in the ITV drama Mr Bates vs The Post Office – to ensure timelines for are met, after it emerged just 20 per cent of funds earmarked for redress has been paid out.

He said: “The top of the Post Office is in utter disarray and not fit for purpose to run the payouts to former sub-postmasters.”

“We have to make sure fast compensation is fair compensation. Otherwise, we risk innocent sub-postmasters facing a new prison of poverty. We cannot and must not let that happen.”

The report also calls for a cap on legal expenses for sub-postmasters to be removed and a standardised set of tariffs to help victims to better estimate what they are entitled to.

A government spokesperson said: “The government is working tirelessly to get compensation into the hands of those postmasters wronged by the injustices of this scandal.

“We’re speeding up compensation, with approximately £179m already paid, and legislation is being brought forward to overturn the convictions of those who were wrongly prosecuted, with £600,000 in compensation also available.

“We will consider this report, and its recommendations, carefully and respond in due course.”

A Post Office spokesperson said: “The Post Office welcomes the direction of this report into speeding redress for one of the worst miscarriages of justice in British history, and we will study its recommendations carefully. 

“While £179m has been delivered in redress to victims of this scandal, and settlements reached with 2700 postmasters, more needs to be done. 

“The Post Office would have no objection to relinquishing our role in administering redress. 

“Whatever is decided, we will continue to work with the government, Parliament and the independent advisory board to do everything possible to speed up justice and redress for victims of this terrible scandal.”