The Post Office has incurred over £250 million in legal fees related to the Horizon IT scandal, nearly matching the total compensation paid to victims.
According to data obtained under the Freedom of Information Act, the company has spent £256.9 million on legal services over the past decade specifically for this issue.
Government figures show that, as of July, £261 million had been paid in compensation to the scandal’s victims.
The legal expenses include defending the group litigation filed by 555 subpostmasters, led by Sir Alan Bates, in the High Court. Keith Macaldowie, a participant in the civil group action, has described the disclosure of such a substantial legal bill as “disgusting.”
These fees encompass costs for launching the compensation scheme, legal advice on compliance with the High Court’s ruling regarding the faulty Horizon software, and representation at the ongoing public inquiry into the scandal and the wrongful prosecution of subpostmasters.
The fees were disbursed to 15 law firms and two barristers’ chambers between September 2014 and March 2024, as first reported by The Lawyer magazine.
The largest portion of these fees went to City law firm Herbert Smith Freehills (HSF), which received £163.5 million for its services. HSF was engaged by the Post Office in 2019 to help negotiate a settlement with subpostmasters and has since provided advice on the compensation schemes and the statutory inquiry.
A spokesperson for HSF stated: “Herbert Smith Freehills’ involvement has been extensive and complex, involving hundreds of our staff over several years and handling millions of documents in relation to the inquiry. We deeply empathize with the postmasters affected by the Horizon IT system and the hardships endured by them and their families. As one of several advisers on the compensation schemes, we remain committed to supporting the Post Office in delivering fair compensation as quickly as possible.”
The fees also cover costs for external experts and individual barristers.
A Post Office spokesperson commented: “Our current focus is on delivering redress to those affected as promptly as possible and supporting the inquiry to uncover the truth. To date, the Post Office and the Government have paid over £260 million to 2,800 postmasters. We deeply regret the suffering caused by past actions, and the substantial expenditure on legal fees reflects the magnitude of the scandal. The inquiry has revealed the extent of the Post Office’s past failings and their severe consequences. We are dedicated to assisting victims in obtaining answers and making amends as best as we can.”
