Post Office spent £132m defending itself at inquiry

The Post Office has spent £132m of taxpayer money defending itself at the inquiry into the wrongful conviction of hundreds of sub-postmasters, according to the latest available figures.

The revelation in the company's annual report comes after the two-and-a-half years of evidence hearings for the inquiry ended this week.

The figure covers the legal and running costs from its start up until 31 March 2024, but it does not include money spent after that date.

Post Office chairman Nigel Railton said that the Post Office was "learning from the serious failings of the past".

More than 900 sub-postmasters were prosecuted for shortfalls in their accounts caused by bugs in Fujitsu's Horizon IT system in what has been described as one of the most widespread miscarriages in British legal history.

Many lost their livelihoods or were forced to make up shortfalls from their own money, while some former sub-postmasters took their own lives.

The inquiry came after sub-postmasters fought for years to uncover the injustice.

The Post Office's figures for legal costs related to the inquiry do not include the money it has spent paying compensation to wrongfully convicted sub-postmasters.

It also said it had made provisions totalling £816m in "exceptional expenses" for the year to 31 March 2024, which includes the legal and running costs as well as the money to be spent on compensation and overturned convictions.

However, despite the expense, some sub-postmasters say they have not yet received any compensation, while others, such as Sir Alan Bates, argue what they have been offered is not enough.

The results show how legal and running costs jumped as the inquiry went on.

The Post Office spent £82m in the 12 months to 31 March, £38m the previous 12 months, and £12m in the year prior to that.

The results also show to what extent legal costs and redress are weighing on its finances.

It showed that pre-tax losses widened to £612m -up from £81m the previous year - while its debts have soared to more than the value of everything it owns.

The release of the numbers comes after two-and-a-half years of evidence hearing sessions drew to a close this week and final statements were submitted.

Commenting on the milestone, Mr Railton said "there remains much to learn and to embed into our organisation culturally as we move forward."

Its chief executive also said on Thursday that the organisation expects the figure paid out in compensation to increase in the new year as it continues "to quicken the pace on payments".

He added, however, that ''no amount of financial redress can replace what has been lost to victims".

Nick Read will also not receive a bonus, having waived his rights to it when he resigned in September after months of scrutiny for the organisation.