d. The Group Litigation Scheme - GLOS

4.199. I have already referred to the announcement made by the Minister on 22 March 2022.[172] On 30 June 2022, a further announcement was made to Parliament that

“The Government intends to make an interim payment of compensation to eligible members of the GLO who are not already covered by another scheme, totalling 19.5m”.[173]

The Minister also indicated that (a) the Department would be working towards delivering a final compensation scheme for the claimants in the Group Litigation and (b) the claimants would be able to recover reasonable legal fees incurred in pursuing their claims under the scheme.

4.200. By letter dated 12 July 2022, the legal representatives of the Department informed the Inquiry that the representatives of JFSA had suggested that the £19.5m set aside for interim payments should be distributed to eligible claimants “pro rata to their shares of the 2019 High Court settlement in the Bates & Others v Post Office Limited case”.[174] At the hearing which took place on 13 July 2022, I was told by Mr Nicholas Chapman, counsel for the Department, that this proposal was acceptable to the Department and that it was anticipated that interim payments would be made to claimants within weeks.[175] I have no reason to doubt that interim payments were made to all, or virtually all, claimants within that timescale.

4.201. In parallel, the Department began work on developing a scheme to deliver further financial redress to those who had been claimants in the Group Litigation. On 7 December 2022, the Minister made a Statement in Parliament and a document entitled “Additional Compensation for GLO Members: Scheme Process” (“the Scheme Process”) was made public.[176] In his oral submissions to the Inquiry at the hearing on 8 December 2022, Mr Chapman explained that the Department would administer and deliver the scheme; that the scheme would be overseen by an independent advisory board and that claims under the scheme would be determined by an independent panel.[177] I was also told that the likely commencement date for the submission of claims was the spring of 2023.

4.202. On 10 February 2023, the Department opened a register for the scheme.[178] Legal advisors or the claimants themselves, if unrepresented, were invited to fill out a registration form which contained basic personal details and sufficient information so as to allow the Department to obtain relevant disclosure of information and documents relating to individual claims from the Post Office.

4.203. On 23 March 2023, the claimants were notified that they could submit their claims for financial redress.[179] That same day the Scheme Process was withdrawn and replaced by the GLO Compensation Scheme Guidance and Principles (the GLOS Guidance and Principles).[180] By this date the Department had appointed Dentons, noted for its expertise in alternative dispute resolution, as scheme facilitators and Addleshaw Goddard LLP had been appointed as the legal advisors to the Department.

4.204. At the hearing on 27 April 2023, claimants had been able to make claims for approximately one month. In these circumstances, self-evidently, it was not possible for those acting for Core Participants to make meaningful submissions about how the scheme was operating.

4.205. However, even at this early stage I was acutely conscious that the legal basis upon which the Department was empowered to make further payments to claimants mandated that such payments should be made by midnight 7 August 2024.[181] As I explained in the Interim Report, I was most concerned that a period of approximately 16 months was insufficient in order to deliver appropriate further financial redress to approximately 450 to 500 claimants. I recommended that:

“HM Government should bring forward and use its best endeavours to ensure that legislation is enacted so as to allow payments of compensation under GLOS to be made to Applicants after 12 midnight on 7 August 2024 if that proves to be necessary.”[182]

4.206. My recommendation was accepted, and on 25 January 2024, the Post Office (Horizon System) Compensation Act 2024 became law.[183] The Act had the effect of removing the need for payments to be made under GLOS by midnight, 7 August 2024. There is now no end date by which payments must be made.

4.207. I do not think it necessary to describe the process by which claims were initiated in the early months in which the scheme was in operation, or the principles upon which the Department first formulated its offers to claimants. They are set out sufficiently in the written evidence of Mr Creswell and in the Interim Report.[184] All, or virtually all the claimants in GLOS have been represented by lawyers which no doubt, will have assisted them substantially in navigating the process of initiating and progressing a claim. It is worth noting however, that in the months immediately following March 2023 there were substantial (and apparently justified) complaints about the time which the Post Office was taking to provide relevant evidence about individual claims.[185]

GLOS Governance Provisions

4.208. GLOS is, and from its inception, has been governed by a steering group which is made up of officials of the Department. The group has written Terms of Reference.[186] The group is chaired by Mr Creswell. It has day to day responsibility for the administration and delivery of the scheme. Between March 2023 and January 2024 (when Fixed Sum Offers became available) Mr Creswell (or on occasions his deputy) made the decision about the amount to be offered to claimants in respect of claims which were not designated as exceptional.[187] No doubt, all the decisions made by or on behalf of Mr Creswell were informed by advice and assessments by lawyers employed or engaged by Addleshaw Goddard LLP.

4.209. From the scheme’s inception a distinction was drawn between the claims which were regarded as exceptional and those which were not. If a claim was designated as exceptional, Mr Creswell or his deputy did not make the decision alone. In exceptional cases, an offer was made to a claimant only after Mr Creswell’s suggested decision had been approved by members of the Department’s finance and legal teams. In the event that a claim was considered to be not just exceptional, but also novel, contentious or repercussive, any offer would be approved not only by the persons responsible for approving offers in exceptional cases, but also by an official from HM Treasury.

Assessed Claims

4.210. Since January 2024 claimants have been able to choose between having their claims assessed and accepting a Fixed Sum Offer.[188] Assessed claims follow the same sort of process in the initial stages as I have described in the Interim Report. A claim form is submitted which ultimately leads to an offer being made to a claimant on behalf of the Department. Between the launch of the scheme and 23 November 2023 offers were formulated in accordance with the Scheme Guidance and Principles; on 10 January 2025 the guidance and principles were updated (the “Updated Guidance and Principles”).[189]

4.211. Claims which are assessed either reach a point where the claimants and the Department conclude an agreement and a formal, binding settlement is achieved, or they remain the subject of dispute in relation to some or all heads of claim, as to which see paragraphs 4.217 to 4.223.

Fixed Sum Offers

4.212. On 10 January 2024, the Minister announced that a Fixed Sum Offer of £75,000 would be made available to claimants.[190] On 26 January 2024, a claim form specific to this offer was published on GOV.UK and it was also sent to all the legal representatives acting for claimants.[191] If claimants wish to accept the Fixed Sum Offer, their legal representatives submit a completed claim form to Dentons. No disclosure is sought from the Post Office in respect of the value of the claim and, provided the claim form has been completed satisfactorily, and it is accepted that the claimant was a party to the Group Litigation, payment of £75,000 (less any interim payments received under the scheme (and any other deductible payments) is made promptly.[192]

4.213. The possibility that such offers would be introduced had been under consideration since the summer of 2023.[193] The making of such offers was very much supported by the Department’s Ministers and officials.[194] However, the Chancellor of the Exchequer, other Treasury Ministers and officials of the Treasury were much less enthusiastic. The view of the Department and its Ministers was that the making of Fixed Sum Offers would accelerate the rate at which settlements were achieved. The view of Treasury Ministers and their officials was that there was a real possibility that Fixed Sum Offers would not represent value for money. After a significant debate, the view of the Department’s Ministers prevailed.

4.214. Accordingly, as from 26 January 2024, the sum of £75,000 became available to the following categories of claimants:[195]

(i) Claimants who had already settled their claims for less than £75,000 became entitled to the difference between £75,000 and the sum for which they had previously settled; they were given “top-up” payments.

(ii) Claimants who had received offers which they had not accepted could, instead, opt to accept £75,000.

3. Claimants who had received no offer at all could opt to accept £75,000.

4.215. Claimants who accept the Fixed Sum Offer, and/or are entitled to top-up payments, have been, and are paid promptly following acceptance. To repeat, there is no investigation of the value of their claims.[196] Interim payments made under GLOS and other compensation payments, e.g. payments made to claimants under the Terms of Settlement of the Group Litigation, are deducted from the Fixed Sum Offer when payment is made. A claimant who incurs legal fees in order to obtain advice about whether to opt for the Fixed Sum Offer can recover those fees from the Department provided they are reasonable.

4.216. Those who do not wish to accept £75,000 opt to have their claims assessed. Once that option is taken it is irreversible, i.e. claimants who opt for assessment lose the opportunity to accept £75,000.[197]

Assessed Claims and Dispute Resolution

4.217. These claims follow the process I have described in the Interim Report and, to an extent, above.[198] Most claims in which assessment is chosen are resolved by negotiation i.e. following the making of an offer, or offers on behalf of the Department.[199] Dentons facilitate the negotiation if necessary, particularly after a first offer has been made and rejected. Inevitably however, some claims cannot be agreed simply by negotiation between the claimant and the Department even with the assistance of Dentons. In consequence, once Dentons are satisfied that a negotiated settlement is unlikely to be achieved in any particular claim, they can (and no doubt will) refer the claim to an independent panel (which they appoint) and which operates under formal Terms of Reference.[200]

4.218. A panel is constituted by a leading lawyer and two other persons with expertise in those parts of the claim which are contentious.[201] Following appointment, a panel considers the parts of the claim which are in dispute and then issues a non-binding assessment which is intended to assist the claimant and the Department to achieve a settlement by further negotiation. If, despite the non-binding assessment, no settlement is achieved, Dentons refer the claim back to the panel which then has the power to issue a binding determination in respect of the matters in dispute, i.e. a determination which the claimant and the Department must accept. So far as I am aware there is no provision written into any document which specifies whether claimants (or more likely their lawyers) may, either as of right or with the permission of the panel make oral representations to the panel about the value of the claim or parts thereof before a non-binding or binding determination is issued.

4.219. However, the panel’s binding determination is not necessarily the end of the road.

4.220. The GLOS Guidance and Principles had always anticipated the appointment of a person to perform the role of an Independent Reviewer who would have the power, in prescribed circumstances, to uphold or overturn the binding decision of a panel.[202] On 4 September 2023, Sir Ross Cranston was appointed as the Independent Reviewer. Sir Ross is a former High Court Judge.[203] He has considerable relevant experience for performing the role of an Independent Reviewer. In particular, in 2019 he conducted an independent assurance review of the handling of claims arising from fraud committed at the HBOS Impaired Assets office. Sir Ross’s role as an Independent Reviewer is governed by Terms of Reference which were updated on 10 January 2025 (the Reviewer’s Terms of Reference).[204]

4.221. Following a binding determination by a panel the claimant and/or the Department may, if they choose, submit a review application to Dentons.[205] The application is considered by a senior lawyer within the Dentons team who then refers it to Sir Ross with a recommendation as to whether or not he should accept the review. He can overturn a binding determination of a panel if, but only if he considers that: (a) there has been a manifest error, procedural irregularity or substantive error of principle in the panel’s final assessment of the claim; or (b) the panel’s final assessment is substantially inconsistent with the revised guidance and principles.

4.222. Once a review application is submitted to Sir Ross, he first satisfies himself that the criteria justifying a review are met.[206] If he is satisfied that they are not met he will reject the review. If he is satisfied, on a provisional basis, that the criteria are met, he notifies the parties of that conclusion and invites any further necessary written submissions about whether the criteria are met, and written submissions about whether the determination of the panel should be upheld. Upon receipt of the submissions, Sir Ross will determine whether or not to uphold the decision of the panel. If he concludes that the panel’s decision should not be upheld, he makes his own assessment of the sum to be awarded to the claimant. His determination is final and binding on the claimant and the Department.

4.223. As of 30 October 2024, when Sir Ross made his witness statement for the Inquiry, only two claims had been considered by a panel (on a non-binding basis).

The Number and Progress of Claims and the Sums Made

4.224. There are currently 492 eligible claimants under this scheme. That the figure is less than the number of claimants in the Group Litigation is explained by the fact that a number of the Group Litigation claimants have made claims in OCS. I have received no evidence or information which suggests that the number of claimants will increase.

4.225. As of 6 November 2024 (when Mr Creswell gave oral evidence to the Inquiry) 306 persons had made completed claims in GLOS.[207] Of that number, approximately one-half had opted to accept the Fixed Sum Offer of £75,000 with a similar number choosing to have their claims assessed. According to Mr Creswell, nearly all the claimants who had opted to accept the Fixed Sum Offer had been paid prior to 6 November 2024.[208] The picture was very different for those who had opted to have their claims assessed. Although offers had been made to most of those claimants, no more than about a third had accepted the first offers made to them and had been paid. A small number of claimants had accepted revised offers (with a handful of those being paid). Two disputed assessed claims had been referred to an independent panel for a non-binding determination, but the determination had not been delivered.[209]

4.226. On the basis of Mr Creswell’s evidence there were 186 eligible claimants who had not made a claim of any kind.[210]

4.227. By 29 November 2024, 334 claims had been submitted to Dentons. 315 offers had been made and 235 of those offers had been accepted.[211]

4.228. There is a paucity of evidence as to why the claims of so many eligible claimants had not been submitted by 29 November 2024. I appreciate that some claimants have been unable to instruct suitable experts without first enduring substantial delays over which they have no control. It seems unlikely, however, that this problem can be the only reason for the absence of so many eligible claims.

4.229. By 31 January 2025 the number of claims made had risen to 408.[212] Offers had been made to 383 claimants and there had been 257 acceptances. The numbers had risen again by 21 February 2025 in that there were 425 claims which had been assessed as complete.[213]

4.230. In respect of those 425 claims, offers in settlement had been made in 407 cases. 269 claimants had accepted their offers, and 265 claimants had actually been paid. There remained 67 claims in which full claims had not been made.

4.231. By 7 April 2025 there were further changes. 446 claims had been received. 432 offers had been made of which 287 had been accepted and 282 claimants had been paid.[214]

4.232. As of 30 April 2025, 450 claims had been submitted, and 445 offers had been made. 304 offers had been accepted, and 294 claimants had been paid.[215]

4.233. In summary, by 30 April 2025 there were 42 claimants who had not submitted a particularised claim i.e. just under 9% of those entitled to claim. By the same date offers had been made to 445 claimants, i.e. just over 99% of the claimants who had made a claim had received offers. There were 188 unresolved claims, i.e. the claims of about 38% of those entitled to claim were unresolved. It is reasonable to infer that most of those claims are at various stages of assessment. It is difficult to imagine that there are a substantial number of claimants who are waiting to opt for, or accept a Fixed Sum Offer, given that the scheme has now been open for more than two years, and the Fixed Sum Offer has been available since January 2024.

4.234. I understand from Mr Creswell’s fourth witness statement that there have been no further referrals to the panel since he gave oral evidence on 6 November 2024.[216] I understand that 10 more claims have been referred to the panel since 31 March 2025, bringing the total number of referrals to 12 in total. One of the claims which had been referred to the panel on a non-binding basis has now been considered further by the panel and it has issued a binding determination. Following that binding determination a review was sought; the review has been undertaken by Sir Ross who has issued his decision.[217]

4.235. By 30 April 2025, the Department had paid the total sum of £160m to claimants.[218] This figure includes all full and final awards and interim payments. Since Mr Creswell’s fourth statement, I am informed that as of 30 April, the Department had paid approximately £4.7m to its lawyers Addleshaw Goddard and £1.8m to Dentons.[219]

[172]

See paragraph 4.7 above.

[173]

[RLIT0000607] at [1/2].

[174]

[SUBS0000061] at [2].

[175]

Transcript, 13/07/2022, Submissions, [INQ00001056] at [22/10] to [22/16].

[176]

[RLIT0000601] at [1/11] to [2/11].

[177]

Transcript, 08/12/2022, Submissions [INQ00001055] at [47/5] to [47/8].

[178]

[RLIT0000279].

[179]

[RLIT0000283].

[180]

[INQ00002027] at [10/27].

[181]

The precise statutory provision was not explained to me but I was told that this was the consequence of the relevant provisions of an Appropriation Act of 2023.

[182]

[INQ00002027] at [34/144].

[183]

[RLIT0000359] at [6/11].

[184]

Carl Creswell 1st [WITN11730100] at [28/66] to [60/174] and [INQ00002027].

[185]

Carl Creswell 1st [WITN11730100] at [21/49]; [54/159] to [55/162].

[186]

[BEIS0000910].

[187]

Carl Creswell 1st [WITN11730100] at [43/121].

[188]

[RLIT0000383] at [1/23].

[189]

[RLIT0000575].

[190]

[RLIT0000383] at [1/23].

[191]

[BEIS0001051].

[192]

Carl Creswell 1st [WITN11730100] at [33/83].

[193]

Ibid at [21/47].

[194]

Transcript, 06/11/2024, Kevin Hollinrake MP [INQ00001202] at [47/3] to [51/10].

[195]

Carl Creswell 1st [WITN11730100] at [33/84].

[196]

Ibid at [33/83].

[197]

Transcript, 06/11/2024, Kevin Hollinrake MP [INQ00001202] at [110/9] to [110/15].

[198]

[INQ00002027] at [10/27] to [17/60].

[199]

Carl Creswell 1st [WITN11730100].

[200]

[BEIS0000905] at [1/4].

[201]

Ibid.

[202]

[RLIT0000575] at [4/3.14].

[203]

Sir Ross Cranston 1st [WITN11790100] at [2/11].

[204]

[RLIT0000576].

[205]

[RLIT0000575] at [7/3.6.11] to [8/3.6.17].

[206]

[RLIT0000575] at [8/3.6.18]

[207]

Transcript, 06/11/2024, Carl Creswell, [INQ00001202] at [211/7] to [211/8]: The phrase completed claims means claims in which either the claimant opts for the Fixed Sum Offer or the claimant submits a claim which has been fully particularised and in which an assessment is sought.

[208]

Ibid at [206/8] to [206/18].

[209]

Carl Creswell 1st [WITN11730100] at [37/100].

[210]

Transcript, 06/11/2024, Carl Creswell, [INQ00001202] at [207/3].

[211]

[RLIT0000578] at [5/8] to [7/8].

[212]

[RLIT0000610] at [4].

[213]

[RLIT0000577] at [3] and [4].

[214]

[RLIT0000600] at [5].

[215]

[RLIT0000620] at [9] to [13].

[216]

Carl Creswell 4th [WITN11730400] at [2/4].

[217]

Ibid.

[218]

[RLIT0000620] at [3].

[219]

Carl Creswell 4th [WITN11730400] at [2/5] which sets out amounts paid up to 31 March 2025. I did not consider it necessary to obtain a further witness statement on this point.