A leaked letter, seen by Sky News, warns government that victims of the Post Office scandal find compensation schemes ‘worse than the original injustice’.
The letter was written by victims commissioner Baroness Newlove and sent to the Post Office minister Blair McDougall earlier this month.
“Far from offering catharsis,” she writes, “the compensation process was seen to be as bad as or even worse an experience than the initial investigation, prosecution and injustice itself.”
She adds that “hearing this from victims, time and again, shocked me”.
Victims told her that initial offers were “insultingly low” and that constant delays and requests for decades-old paperwork had left them offended and “distressed”.
Some described the process as “adversarial”, with Baroness Newlove comparing it to fighting an insurance company rather than receiving justice from the state.
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The letter urges the government to abandon “commercial tactics” such as making low initial offers – approaches the Commissioner says are “not appropriate when dealing with traumatised victims”.
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“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,” she said.
The letter was sent on 3 October, shortly before the government outlined its official response to part one of the Horizon inquiry report.
It announced that it would accept most of the recommendations, including on redress, put forward by the chair of the inquiry Sir Wyn Williams.
In her four-page letter, Baroness Newlove also welcomes access to “free legal advice” to help victims with claims but calls for earlier cases to be reviewed.
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She explains that where advice had not been available, some victims “might have been disadvantaged as a result”.
“Is it possible these early cases can be reviewed to ensure everyone has been treated fairly and equally?” she asks.
The letter also raises concerns that some current serving sub postmasters feel “under pressure” from managers not to pursue claims, urging the department to ensure this “is not the case”.
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Baroness Newlove also relays victims’ frustration that Fujitsu, the company behind the faulty Horizon system, continues to work with the government and asks whether this is “an issue the government is looking to address”.
A Post Office spokesperson said in response to the letter: “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.”
A Fujitsu spokesperson said: “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 Department for Business and Trade has been contacted for a response.
