Post Office faces backlash over £250m legal fees

The state-owned body paid out £256.9m to 15 law firms and two barristers chambers between September 2014 and March 202

• Pramod Thomas
• 22 August, 2024

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By: Pramod Thomas

POST OFFICE has come under fire after it was revealed that it has paid out a staggering £256.9 million in legal fees since 2014, in relation to the Horizon IT scandal.

This figure is nearly equivalent to the amount it has paid out to victims of the scandal, some of whom were wrongfully imprisoned and made bankrupt, reported the Guardian.

The scandal happened when it became apparent that a faulty IT system, known as Horizon, had wrongly accused hundreds of post office subpostmasters of theft and fraud. This led to many being wrongly convicted and facing severe financial and personal consequences.

According to a freedom of information request, submitted by the Lawyer magazine, the Post Office paid out the hefty legal fees to 15 law firms and two barristers chambers. This figure covers a period from September 2014 to March 2024 and includes costs related to the high court group litigation, the establishment of compensation schemes, and legal representation at the Horizon IT inquiry.

The largest sum- £163.6m – was awarded to the law firm Herbert Smith Freehills. Despite having no involvement in the prosecution of post office operators, Herbert Smith Freehills played a significant role in the scandal’s aftermath. The firm was tasked with helping the Post Office settle a high court lawsuit and support the financial redress for victims.

The revelation has sparked outrage among victims and their supporters. They argue that the Post Office has prioritised legal fees over compensating those who were wrongfully harmed. Critics have also questioned why the Post Office has not been more transparent about its legal spending.

A spokesperson for the Post Office defended the legal fees, stating that they were necessary to address the complexities of the scandal.

“As a firm, we have immense sympathy for the postmasters affected by the Horizon IT system, and what they and their families have endured. As one of several advisers on the compensation schemes, we will continue to support the Post Office in its efforts to deliver fair compensation as swiftly as possible,” the spokesperson was quoted as saying.

However, many victims remain skeptical. They believe that the Post Office has not taken full responsibility for its actions and that the legal fees are a waste of public money.

The scandal itself involved the wrongful conviction of over 900 post office operators based on faulty IT evidence from the Horizon system. These convictions were secured between 1999 and 2015, with many operators facing severe financial and personal consequences.

In response to public outcry, new legislation was passed to quash hundreds of these convictions.

The ongoing public inquiry into the Horizon IT scandal is set to enter its seventh phase later this year. The focus will be on examining the Post Office’s internal practices and procedures, with the aim of preventing similar incidents in the future.