Post Office Capture victims to receive first £10,000 compensation payouts in days ...Middle East

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The first compensation payments to victims of a second IT scandal at the Post Office have been approved and should arrive in time for Christmas, The i Paper understands.

Hundreds of sub-postmasters who used the Capture system in the 1990s experienced unexpected losses when trying to balance the books.

But in a precursor to the Horizon scandal, they were forced to hand over money, sacked, and in some cases criminally prosecuted by the Post Office.

An investigation by The i Paper found that Post Office IT bosses, who produced Capture themselves, were aware it was capable of producing faults.

But Post Office investigators pursued sub-postmasters for the alleged shortfalls regardless.

Data obtained via a Freedom of Information request shows the Post Office carried out hundreds of prosecutions potentially involving Capture between 1992 and 1998.

The Capture software was rolled out to Post Office branches starting in 1992

The Government agreed to set up a new compensation scheme for Capture victims, which opened for applications in October.

The i Paper understands that around 50 applications have now been received, with at least five already approved as eligible for a claim.

This means they have been approved for an immediate, interim payment of £10,000 pending an agreement on the full level of compensation they should receive.

The first payments should arrive in time for Christmas.

Post Office minister Blair McDougall said compensation will be delivered “at pace” and praised the “tireless reporting from The i Paper” which exposed the scandal.

Neil Hudgell, the solicitor representing the majority of Capture victims, welcomed the milestone but said there is still a long way to go for sub-postmasters and their families.

“I think there’s cautious positivity,” he said.

“Until we understand how the applications are going to be processed and determined, it’s a real ‘wait and see’.”

Lee Bowerman, 67, is among those to have submitted an application for compensation.

He says he lost at least £60,000 over four years covering losses he experienced while using the Capture system at his Post Office branch in Tredegar, Gwent, in South Wales.

As the losses mounted, Bowerman was forced to borrow money from his parents before finally selling his Post Office after he was told his position was under threat.

Bowerman, a former sub-postmaster who says he lost around £60,000 because of Capture (Photo: Tom Pilston/The i Paper)

“I would like to think they would make an effort to get as many of those [interim compensation] payments to people as fast as they can,” Bowerman said.

“If it’s just a big push to get as many of them out before Christmas, that would be helpful for a lot of people.”

Capture victims have expressed concern that the Department for Business and Trade, which is processing compensation claims, set an “upper band limit” of £300,000, adding that payouts above this amount will only be made in “exceptional circumstances”.

Bowerman said this figure “won’t even touch the sides” for him and many others.Victims not only handed over their own money to the Post Office to cover alleged losses, but some were also forced to sell homes and other assets, which led to mental and physical breakdowns.

Some sub-postmasters died not long after being pursued by the Post Office, with family members feeling their deaths were brought about prematurely from stress.

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Those who were criminally prosecuted by the Post Office will not receive any compensation until their convictions have been overturned.

The case of Patricia Owen, who was found guilty of theft after being prosecuted in 1998, is the first involving Capture to have been referred to the Court of Appeal.

It is hoped judges will hear the case and agree to quash the conviction in the new year.

McDougall said: “It’s a tribute to the campaigning of postmasters and their families, as well as tireless reporting from The i Paper, that we’ve been able to launch a redress scheme that will restore dignity to so many hurt by the Capture system.

“We’ve worked with postmasters to design a scheme where all of those who apply and are eligible, will receive a preliminary payment of £10,000, and the independent panel can award above £300,000 in exceptional circumstances.

“This isn’t the end of the journey, and I’m focused on delivering redress at pace so that victims can rebuild their lives whilst receiving the justice they deserve.”

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