Post Office admits Horizon scandal staff are compensating victims

Telegraph

22-06-2025

The Post Office has admitted that staff linked to wrongful prosecutions of postmasters are still working in a department which compensates victims of the scandal.
Chairman Nigel Railton has acknowledged three so-called 'past roles employees' remain employed in the organisation's remuneration unit.
It came after the chair of the advisory board for compensating victims said how postmasters had been left 'deeply distressed' after encountering certain members of staff.
The Telegraph can reveal one employee was involved in the mediation scheme case of Lee Castleton, a former postmaster bankrupted as a result of civil action taken against him by the Post Office.
More than 900 former sub-postmasters were wrongfully prosecuted as a result of the Horizon scandal, when faulty Fujitsu software incorrectly recorded shortfalls on their accounts.
A public inquiry into the scandal is expected to produce its first report in the coming weeks, which will focus on the human impact of the scandal and the ongoing process of financial redress.
Though various schemes were set up to compensate victims, Sir Alan Bates and others have criticised them for taking too long and for offering payouts far smaller than some have claimed for.
The majority of the schemes – including the one set up to pay out Sir Alan and more than 500 others who took legal action against the Post Office – are now administered by the Government.
However, the Post Office continues to run the Horizon Shortfall Scheme for victims who were neither wrongfully convicted nor involved in the High Court Case.
Last month, The Telegraph revealed a former Post Office auditor who visited branches with suspected shortfalls, was, until recently, employed within the unit.
And earlier this month, Christopher Hodges, chair of the Horizon Compensation Advisory Board, wrote to Mr Railton to express his concerns about staff who had roles linked to historic cases linked to the scandal.
'The issue is the ongoing involvement in redress and appeals work of Post Office staff who are perceived as having earlier been involved in the scandal,' he said.
'We continue to hear reports from victims who have met such staff in compensation meetings, and who find it deeply distressing and inappropriate.'
'No conflict'
In a letter in response, Mr Railton said that as far as its 'analysis' showed, it had 'no employees working on redress who are in a position of actual conflict'.
Mr Railton said some individuals who worked for Post Office while postmasters were being wrongfully prosecuted were employed in the Remediation Unit when it was set up.
He then said the Post Office 'quickly acknowledged' that this gave rise to 'perceived conflict' particularly in the case of those who worked in roles 'even loosely connected with historic prosecutions' – known as 'past roles employees'.
While the chair said the Post Office had 'taken steps to remove' these staff, he said the organisation was anxious that as these individuals hadn't been accused of wrongdoing, they were to be treated fairly and that the process should not 'slow down the pace of redress'.
'Leaving at the earliest opportunity'
Mr Railton then added: 'As at the date of your last meeting (at which the oral update was given), we were in a position to report that all but two Past Roles Employees had been redeployed from the Remediation Unit (and many had left the business altogether), and that discussions were ongoing with the remaining two individuals with a view to their leaving Post Office.
'Since then, one further individual has been identified and the team is working towards their leaving Post Office too at the earliest opportunity.'
One individual who continues to be employed within the unit is Shirley Hailstones, who is not accused of wrongdoing.
Documents shown to the inquiry show Ms Hailstones gave feedback on a defence drafted on the Post Office's behalf in relation to victims' cases.
And Ms Hailstones was also previously involved in the mediation case of Mr Castleton, who was portrayed by Will Mellor in the ITV drama Mr Bates vs The Post Office.
Mr Castleton was ultimately told he would not be able to take part in the scheme and that his only option would be to take his case to court.
The inquiry was shown emails from forensic accountant Ron Warmington and Ms Hailstones, a Post Office case review manager, sent in November 2013, discussing potential links between faults at different Post Office branches.
Ms Hailstones did not copy-in former sub-postmasters Mr Castleton and Sir Alan to her email, before she shared it with then-Post Office irrelevant Angela van den Bogerd and said: 'This interaction in my view should not be widely circulated.'
Speaking to The Telegraph, Mr Castleton said: 'It's entirely irrelevant whether any of these people are guilty of wrongdoing or not.
'From the perspective of former sub-postmasters, anybody working at the Post Office in that era will be tainted – it's the optics. They need to be removed.'
A Post Office spokesman said: 'We do not comment on individual employment matters. 'We can confirm, as per our letter to the Advisory Board that has been published, there are three individuals leaving the Post Office at the earliest opportunity.'