Ex-Post Office chair says government told him to delay compensation for postmasters until election

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Labour has demanded solutions after the previous chairman of the Post Office stated he was told to ‘stall’ on compensation for subpostmasters forward of the overall election.

Henry Staunton was ousted final month after lower than a 12 months within the function, after the Business Secretary Kemi Badenoch declared ‘new management’ was wanted.

Her intervention got here as politicians confronted intense stress over an ITV drama which highlighted the appalling miscarriage of justice.

Hundreds of postmasters had been wrongfully prosecuted over a decade and a half due to defective IT software program, referred to as Horizon.

No 10 has confirmed the estimated last compensation invoice is round £1 billion.

Mr Staunton, the previous boss of WH Smith, stated a senior civil servant steered holding again spending forward of the election.

He told the Sunday Times: “Early on (in the role), I was told by a fairly senior person to stall on spend on compensation and on the replacement of Horizon, and to limp, in quotation marks – I did a file note on it – limp into the election.

“It was not an anti-postmaster factor, it was simply straight financials. I did not ask, as a result of I stated ‘I’m having no a part of it – I’m not right here to limp into the election, it isn’t the suitable factor to do by postmasters’.

“The word ‘limp’ gives you a snapshot of where they were.”

The government has denied Mr Staunton’s claims however Labour stated it could search “answers” within the row in parliament this week.

A government spokesperson stated: “We utterly refute these allegations.” They said ministers had sped up compensation payments and encouraged other postmasters to come forward with claims. “To suggest any actions or conversations happened to the contrary is incorrect. In fact, upon appointment, Mr Staunton was set concrete objectives, in writing, to focus on reaching settlements with claimants – clear evidence of the Government’s intent.”

The drama, Mr Bates vs The Post Office, highlighted the long legal fight for justice by subpostmasters.

Many, including leading campaigner Alan Bates, have since complained about unnecessary delays to victims in receiving compensation.

More than 700 branch managers were prosecuted by the Post Office between 1999 and 2015 after the accounting software made it look as though money was missing from their shops.

Shadow business secretary Jonathan Reynolds stated: “These are extremely critical allegations. Under no circumstances ought to compensation to victims be delayed and to accomplish that for social gathering political functions could be an extra insult to sub-postmasters.”

Illegal migration minister Michael Tomlinson stated the allegatiosn had been “not something that I accept or recognise”.

He told Times Radio: It’s proper to say the entire government has been encouraging sub-postmasters to come ahead to declare the compensation that they deserve, after what was the largest travesty of justice that we have seen. And we’re encouraging postmasters to come ahead and declare the compensation that they deserve. “

Liberal Democrat chief Ed Davey stated: “These allegations are deeply disturbing and Ministers must come to Parliament and explain exactly what has happened at the earliest opportunity.

“The victims of this horrific miscarriage of justice want swift and truthful compensation. It is the least they deserve.”