Dozens of sub-postmasters and their families have been paid out more than £1.6m in compensation following an investigation by The i Paper into a second IT scandal at the Post Office.
Capture, a primitive piece of software, was rolled out to thousands of branches in the 1990s but was prone to bugs and faults which caused accounting problems.
In a precursor to the Horizon scandal, sub-postmasters were pursued over shortfalls and forced to hand over cash, sacked, and in some cases criminally prosecuted by the Post Office.
Following The i Paper‘s investigation, the Government ordered an independent review into Capture which found that the faulty IT system was likely to blame for shortfalls.
A new compensation scheme for victims opened last October and the Department for Business and Trade (DBT) says it has made 32 preliminary payments and 10 final awards totalling more than £1.6million as of 27 February.
The interim payouts were expected to be at least £10,000 although it is understood some have been substantially larger.
The initial scheme was a pilot involving around 150 individuals but the Post Office minister Blair McDougall says he is now happy to expand it to anyone who may lost money due to the Capture system.
It is believed that between 1992 and 1999 at least 2,000 branches used Capture, which was developed in-house by the Post Office IT team.
The Capture software was rolled out to Post Office branches starting in 1992“For the last five months, many of those postmasters wronged by the Capture software have finally been able start getting the redress they have been chasing for far too long,” McDougall said.
“As we’ve already been able to establish the success of the scheme, I’ve taken the decision proceed into Phase 2 of the Capture Redress Scheme without an unnecessary pause.
“By moving directly into Phase 2, we are able to ensure that nobody will face unnecessary delays in receiving the redress they are owed.”
The Government believes the “main components” of the new compensation scheme are broadly “working as intended”.
However, The i Paper has revealed there remain widespread concerns about the setup of the scheme, particularly for those who have larger, more complex claims.
DBT said payouts would be made under a banding system with a cap of £300,000 that would only be exceeded in ‘exceptional circumstances’.
Victims have also complained that they appear to only have a single avenue of appeal if they do not agree with their final compensation offer.
Capture victim Lee Bowerman, from Ebbw Vale, South Wales, has described the scheme as “not fit for purpose.”
The situation also remains painful for those with criminal convictions related to Capture, who will not receive a penny in compensation until they are overturned.
The Post Office has indicated it will oppose attempts to quash convictions at the Court of Appeal, claiming victims received a “fair trial” despite admitting Capture was faulty.
Among those still waiting for justice is Steve Marston who was convicted of theft and accounting offences in 1998.
He was the first Capture victim to reveale his story to The i Paper in January 2024 but he is still waiting for his case to be referred to the Court of Appeal.
“We’re over the moon that people are getting payouts as quick as they are,” said Marston.
“If somebody had said two years ago that people would be getting payouts I would have laughed at them.
“In that respect it does make me feel proud to have played a part in this to try and get people some sort of justice.
“There has been progress – I just wish I could get my case sorted out because the stress levels are horrendous.”
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