I had been aware of the Horizon IT scandal, having first seen an article in Computer Weekly, and had followed the legal case brought by a group of 555 sub-postmasters and sub-postmistresses. However, little did I know when I was sitting down in January 2024, like so many people across the nation, to watch the ITV drama ‘Mr Bates vs The Post Office’ that this was going to become such a large part of my working life in the coming months (and continues to be so).
In the months that followed, Quantuma has been instructed on behalf of over 70 sub-postmasters and sub-postmistresses to calculate their financial losses as a result of the Horizon IT scandal. I, along with other members of our team, have been involved in preparing the calculations.
The main losses we calculate are what you would expect, such as the amounts paid to repay shortfalls, past and future loss of earnings and any loss of capital value in their businesses.
To calculate the loss of earnings we need to calculate the projected earnings in a ‘but for’ scenario which assumes that the Horizon IT scandal did not take place. The projected earnings would normally consist of their remuneration from the Post Office and profits from any retail business, taking into consideration any impact on the results for shortfalls. We would then deduct any actual earnings that have been received during the period. All of our calculations would be net of Income Tax and National Insurance.
For the loss of capital value, we need to calculate the value of their business at their retirement date, again assuming that the Horizon IT scandal did not take place. We would then deduct any actual proceeds that may have been received.
Whilst specific to individual circumstances, we have also been required to calculate other losses such as:
- Additional finance costs, for example, interest charges on loans obtained or cash advances on credit cards to help repay the shortfalls.
- Loss of opportunity in that, due to the financial difficulties that the individuals found themselves in, they could not undertake plans to expand their businesses or to acquire investment properties.
- Losses related to pensions whether due to contributions not being able to be made or drawdowns having to be made earlier.
- Loss of value on items such as jewellery that had to be sold due to the financial difficulties that were being faced.
Following the completion of our calculation of losses we are also involved in dealing with any questions raised by those assessing the claim and assisting in reviewing the offers that has made.
Personally, the most impactful part of this work has been speaking directly with the sub-postmasters and sub-postmistresses. This is important as it allows us to not only gain an understanding of the background to each case but to also allow us to ensure that we have identified all of the financial losses that have arisen. This is especially important, given the time when these losses began, which for some is over 20 years ago, means that supporting documents are not always available.
It is during these calls that you hear first hand of the human impact as well as the financial impact that the Horizon IT scandal has had not just on the claimants, but on their family and friends. Sometimes in our work it becomes all too easy to focus on the numbers, but working on these cases, and hearing each individual’s personal story and what they have gone through, is humbling.
Given the basis for each claim is different, reflecting individual circumstances, the range of offers made vary and we have seen some being in six figures. Whilst, for many, the financial settlement can never fully compensate for what they have been through, it hopefully represents a chance for them to finally begin to move forward and close that chapter of their life. Whilst the work myself, and the other team members at Quantuma, are doing forms just a small part of the overall process, it feels like we are playing an important role and making a difference.
