by Ministers denied claims by the former chairman of the Post Office that the government was trying to stop the payment of compensation to victims of the Horizon scandal so that the Conservatives could “boil into” the general election.
Henry Staunton, who last month sacked business secretary Kemi Badenoch amid furor over the Horizon scandal, said the request came soon after he took up the role in December 2022.
He also alleged that Nick Read, the chief executive of the Post Office, tried in January to dissuade the government from going ahead with a general extermination of operators.
In an interview with the Sunday Times, Staunton, 75, said the request to delay the payment of compensation appeared to be an attempt to reduce the government’s financial liability ahead of this year’s general election.
“Early on, someone quite senior told me to stop spending on Horizon compensation and replacement, and without quotation marks – I made a file note on it – right into the election,” Staunton said.
“It wasn’t an anti-postmaster thing, it was just financial matters. I didn’t ask, because I said: ‘I have no part of it – I’m not here to obstruct the election, this is not the right thing for postmasters to do.’ The word ‘limp’ gives you an idea of where they were.”
The government denied Staunton’s claim. He said “concrete targets” had been set for Staunton to reach settlements and said: “The government has increased compensation for victims, and has consistently encouraged postmasters to come forward with their claims. It is wrong to suggest any actions or conversations that took place to the contrary.”
Badenoch angrily denied on Sunday that she married Staunton, telling him that someone had to “take the rap” for the Horizon scandal.
Describing her account as “full of lies” and a “disgraceful misrepresentation” of their conversation, the business secretary said she would discuss the matter with government lawyers and would not “let the matter rest here”.
She added: “Far from ‘taking the rap’, I sacked Staunton over very serious allegations about his conduct as chairman of the Post Office, including obstructing an investigation into that conduct . My department is responsible for whistleblowers and I would not ignore the allegations.
“Henry Staunton lacked the grip to get justice for postmasters. The serious concerns about his behavior were the reasons I asked him to resign. That he chose to speak to the media with made up stories and a series of lies confirms that I made the right decision.”
Jonathan Reynolds, the shadow business secretary, said Labor will demand answers from Ministers when MPs return this week.
He told X: “These are very serious allegations about the government’s management of the Post Office and their treatment of the victims of the Horizon scandal. We will be looking for answers when parliament resumes this week.”
Post Office Minister Kevin Hollinrake said, “in his 15 months in office, he has never had any opposition from ministers or officials to our objective to expel postmasters who were influenced by the ministers or officials or be fairly compensated. [the] Scandal Horizon”.
Michael Tomlinson, the home office minister, told Times Radio that he “did not accept or acknowledge” Staunton’s allegations.
“We are encouraging postmasters to come forward. We have brought legislation through the House of Commons that will enable those payments to be made, and that is something we are encouraging more than anything else,” he said. “I don’t recognize anything to the contrary.”
More than 900 post office workers have been prosecuted for stealing money because of incorrect information from the Horizon computer system, in what has been described as the biggest miscarriage of justice in UK history.
Around £140m in compensation has been paid out so far, although many victims are suffering delays and say the scheme is too bureaucratic.
Staunton, the former chairman of WH Smith, alleged that Read wrote to the justice secretary, Alex Chalk, last month in an attempt to persuade the government against mass demonstrations.
The letter included a legal opinion from Post Office solicitors, Peters & Peters, which suggested many convictions could be defended on appeal, Staunton told The Sunday Times.
Related: Kemi Badenoch failed to raise the Horizon scandal when she met Fujitsu at Davos
He added: “Basically he was trying to undermine the exoneration argument. It was, ‘Most people have not come forward because they are guilty as charged’ – ie. think carefully about salvation.”
Staunton said he told Read that the views in the letter were not endorsed by him or “at least half” of the Post Office board members, and “if this came out, we would be tortured, and the right then”.
A Post Office source denied to The Sunday Times that the letter was an attempt to influence the government.
Ministers have pushed ahead with emergency legislation that will overturn all Post Office convictions related to Horizon.
A spokesman for the Post Office said: “The Post Office is very aware of the devastating impact of this appalling scandal and miscarriage of justice. We reject the assertions made before us and the words and phrases allegedly used, and we are focused on supporting the government’s plans for faster justice and redress for victims. There is no one at the Post Office to answer the inquiry.”
