History repeats itself in Post Office Capture redress scheme with low-ball offers made

Subpostmasters who suffered at the hands of errors in the Post Office’s Capture software, like Horizon users, are receiving derisory compensation offers, but face a brick wall on appeals.

Former subpostmaster Lee Bowerman has called for parity with the redress schemes for former Horizon users, after receiving a financial settlement offer in the Capture redress scheme, worth just 7% of his professionally calculated claim.

He is considering pulling out of the compensation scheme that he and fellow victims helped to create, and has written to Department of Business and Trade (DBT) minister Blair McDougall to request that his claim is “paused”.

The former subpostmaster in South Wales lost his business more than 30 years ago. In his letter to the minister, he said: “Throughout every meeting, without exception, we were explicitly assured that there would be full parity with the Horizon redress schemes. These assurances were clear and repeated.

“They covered parity of approach to heads of loss, consequential losses, treatment of historic loss, valuation principles, recognition of prolonged harm and the appeal process. In light of the serious concerns set out above, I wish to formally request that my application be placed on pause.”

Bowerman, who has a complex claim spanning three decades, complained about the opportunities to appeal settlement decisions afforded to former Capture users, and said the rules on appeals have been changed since the scheme was launched.

“I do not consider it appropriate for my claim to continue through determination or appeal while fundamental issues remain unresolved regarding parity across schemes, the fairness and structure of the appeal process, the treatment of historic losses and the introduction and application of revised guidance to live cases,” he said.

A spokesperson said the government does not recognise the 7% figure quoted by Bowerman, stating: “After over two decades of fighting for justice, [sub]postmasters and their families are finally receiving redress for being impacted by the Capture software.

“The [compensation] scheme has been designed to account for the time elapsed and provides a fair way to recognise harm, even when records are limited, and any claimant unhappy with their offer can appeal to the chair of the independent panel.”

Up to 19 December, the Capture compensation scheme has received 110 applications. A total of 20 have so far been deemed eligible and 90 are being assessed. One offer has been made so far but not yet accepted. When an application is deemed eligible, the claimant is entitled to a preliminary payment of £10,000. An independent panel then processes these claims before a full offer of financial redress

The spokesperson said the minister and the department will review Bowerman’s letter and “respond as soon as possible”.

Applicants to the Horizon compensation scheme were in many cases offered settlements much lower than their claims, which were subsequently increased. For example, according to figures from Hudgell Solicitors, which represented hundreds of those affected by the Post Office scandal, former subpostmaster Bob Stevenson – who was suspended from his position in 2002 over an alleged Horizon shortfall of £10,000 – received £51,200 compensation in May 2023. This has been increased to £502,000 on appeal.

Hudgell Solicitors said the Post Office initially only offered compensation for the money Stevenson, now 81, had paid into accounts to make up for shortfall losses, distress and inconvenience: “There was no award for the impact of his suspension and termination of contract, the loss of his business, house and subsequent bankruptcy.”

Other examples include compensation offers being increased, following legal advice, from £4,400 to £133,700; from £17,700 to £253,900; and from £21,690 to £238,000.

Those that were persecuted and prosecuted after experiencing unexplained shortfalls while using Capture say they are being treated as second-class citizens.

The Capture scheme is offering initial redress payments of £10,000, with final award bands up to £300,000, to subpostmasters who suffered because of the Capture software’s flaws, with “exceptional cases” receiving payments above the upper limit.

Bowerman wrote in his letter to McDougall: “Proceeding in the current circumstances risks locking in an outcome shaped by a framework that is itself under active and legitimate challenge. A pause is therefore necessary to preserve fairness, prevent prejudice and allow these systemic issues to be properly considered and addressed before any further steps are taken in relation to my claim.” He also requested an “urgent meeting” with the minister.

The Post Office scandal’s oldest living victim, Betty Brown, had several low-ball offers before appealing and receiving 100% of her claim in the Horizon redress scheme: “After the disgraceful pretence of Capture for over 40 years, the Post Office continue their scandalous management of postmasters by offering them derisory settlements, which simply exacerbate the stress and destroy the hopes of any reasonable form of settlement for their losses. Offers of such derisory sums are simply abusive of the victim’s plight.”

Furthermore, campaigners are calling Capture victims who received criminal records after being blamed for account shortfalls to have convictions overturned in the same way as those with convictions based on Horizon evidence.

As things stand, former Capture users, and users of other systems appealing against convictions, are working through the Criminal Cases Review Commission (CCRC). The statuary body is currently assessing 35 potential miscarriages of justice of users of various Post Office IT systems, which it refers to as pre-Horizon cases. So far, one former Capture user’s appeal has been sent to the Court of Appeal by the CCRC, as well as an appeal from a user of a system known as APS/APT.

The Horizon Compensation Advisory Board has written to the secretary of state for justice urging the government to legislate to overturn convictions of subpostmasters based on the error-prone Capture system.

The influential group, which includes peers James Arbuthnot and Kevan Jones – who both campaigned for victims of the Post Office Horizon scandal for many years – wants similar legislation to that used to overturn wrongful convictions for theft and fraud that were based on the controversial Horizon system.