In a letter to Post Office Minister Blair McDougall, Victims Commissioner Baroness Newlove warned wronged postmasters feel compensation schemes are ‘worse than the original injustice’
Victims of the Post Office Horizon scandal feel the compensation schemes are “worse than the original injustice”, an explosive leaked letter claims.
In a memo to Post Office minister Blair McDougall, Victims Commissioner Baroness Newlove said she was “shocked” by what she had heard. She said wronged postmasters told her the packages they were offered were “insultingly low”.
And some said the process was “adversarial”, the commissioner wrote – adding that for some it felt like fighting an insurance company. Her letter, leaked to Sky News, states: “Far from offering catharsis, the compensation process was seen to be as bad as or even worse an experience than the initial investigation, prosecution and injustice itself.”
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Baroness Newlove called on the Government to stop using “commercial tactics” like making low initial offers. This, she wrote, is “not appropriate when dealing with traumatised victims”.
Her letter stated: “It might be better to come back with a request for more information, rather than make an offer that is guaranteed to offend the victim.” And the commissioner warned that serving subpostmasters feel “under pressure” not to claim compensation.
Mr McDougall was told that victims are upset that the Government continues to work with Fujitsu, the company that made the faulty software. The letter was sent on October 3.
Since then the Government has said it will accept most of the recommendations – including on compensation – put forward by Horizon Inquiry chairman Sir Wyn Williams.
Around 1,000 postmasters were prosecuted and convicted after the IT system made it look like cash was missing from their branches.
In a bombshell report published in July, Sir Wyn said this had a “disastrous” impact on those affected – including family members of those wrongly accused. The harrowing report says it is a “real possibility” that at least 13 victims took their own lives as a direct result.
Sir Wyn said he had received evidence that at least 59 people contemplated suicide as a result of the Horizon scandal. He further said it is “almost impossible” to accurately say how many people had suffered.
But he suggested that around 10,000 people were making claims – a number which is likely to rise further. The inquiry report found compensation schemes are “flawed” and people accepted lower offers than they were entitled to because of the Post Office’s “adversarial” attitude.
Public anger rose at the start of last year with the airing of ITV drama Mr Bates Vs The Post Office, which depicted the victims’ battle for justice. After Baroness Newlove’s letter leaked, a Post Office spokesperson said: “We have and continue to actively support all Post Office colleagues, but particularly those with direct contact with Postmasters, to encourage them to submit a claim to the Horizon Shortfall Scheme if they believe they suffered losses in the past.
“Our Area Managers are playing a pivotal role in guiding Postmasters on how to submit a claim and signposting where there’s additional support to do so.
“We have a dedicated claimant support team available on the phone to discuss options, provide support, and answer any questions a Postmaster may have so that we can begin to process their claim right away.
“We would welcome contact with the Victim Commissioner directly so that we can understand more about what they have been told and to ensure all of us work together so that current and former postmasters get their claims in as soon as possible.
“To assist this, we will shortly be launching a national advertising campaign urging any current or former Postmaster who has not submitted a claim to do so as soon as possible and by 31 January 2026.”
And Fujitsu said in a statement: “We continue to work with government to ensure we adhere to the voluntary restrictions we put in place regarding bidding for new contracts while the Post Office Inquiry is ongoing, and we are engaged with government regarding Fujitsu’s contribution to compensation.”
The Mirror has contacted the Department for Business and Trade for comment.