The minister for enterprise, markets, and small business, Kevin Hollinrake disclosed a financial update regarding the Post Office scandal saga, which is widely regarded as the most widespread injustice in British legal history, in a written statement to Parliament. The update disclosed the UK government would be providing an additional £150 million in support of the Post Office, as well as a £40m contingency fund if it is required. 

This recent funding will have two purposes. First, it will finance the Post Office’s ongoing participation in the public inquiry. Second, it will help further compensate the victims. 

The ordeal, unravelling over the years, is known today as a profound miscarriage of justice, costing innocent sub postmasters their livelihoods for being wrongfully convicted for severe accounting errors attributed to the Horizon IT system. The system was used for transactions accounting and stocktaking.

This latest announcement pushes the total taxpayer burden for the scandal well beyond £1 billion, exceeding initial estimates. In January of last year, the government had set aside £1bn in total and regarded the figure as a ‘top estimate,’ however Hollinrake pointed out in his recent statement that the figure is still being calculated and will be much higher. 

Hollinrake also revealed that the government is contributing to the replacement of the beleaguered Horizon IT system, which is expected to be phased out by 2025. The supplier to take on this critical overhaul has so far remained undisclosed. 

“The Government will confirm to the House the outcome of considerations on financing needs at the earliest opportunity following finalisation,” said Hollinrake.

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“The Government also intends to provide additional funding to help with the development of the replacement for the Horizon IT system and to ensure the Horizon system is maintained before that replacement is rolled out.”

According to him this funding is subject to compliance with subsidy control requirements, including a referral to the Subsidy Advice Unit, which will publish a report within 30 working days, along with a preliminary assessment carried out, and a subsequent review period where the outcomes of the review are considered. 

This scandal has plunged the Post Office into a crisis of trust and confidence. For many victims, the calls for accountability continue to grow louder. The Post Office wielded significant legal powers without external oversight, and allegedly withheld evidence that could have exonerated victims.