Sub-postmasters still going through hell, lead campaigner Sir Alan Bates says

Published

6 months ago

February 13, 2025

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The government is continuing to put Post Office victims through “hell” in their fight for redress, Sir Alan Bates has told Sky News.

More than 240 former sub-postmasters are still waiting for financial compensation years after they won their High Court battle.

Sir Alan’s comments come after another former sub-postmaster, Terry Walters from Wilmslow in Cheshire, died without receiving financial redress. He is survived by his wife Janet.

Hundreds were wrongly accused of stealing from their Post Office branches between 1999 and 2015 as a result of faulty Horizon computer software.

Post Office campaigner Sir Alan Bates has described government officials as living in “ivory towers totally removed from the hell the victims have gone through day after day, year after year”.

He told Sky News they “haven’t the slightest inkling of what hell they continue to put the victims (through)”.

“It’s all well and good meeting a few of them every now and then, patting them on the head and making noises about how hard they are working to sort everything out,” he added.

“When the figures alone prove how badly they are able to finalise cases – that is unless victims want to sell themselves short for a quick settlement.”

Sir Alan wrote to the Post Office minister in January putting forward a proposal to help speed along redress delivered to victims who are part of the Group Litigation Order (GLO) scheme.

On behalf of the JFSA (Justice for Sub-postmasters Alliance) he suggested a “compulsory mediation scheme” that could be inserted into the process to “create an opportunity for early resolution”.

In his letter, seen by Sky News, he wrote that this should happen within four weeks from the point at which the initial offer of financial redress is rejected by a victim.

“Key to this proposal,” he continued, “is getting rid of the lawyers, for a whole host of reasons, not least the ridiculous amount being spent on them…”

He added that their input should be “kept to a minimum”.

Sir Alan said the mediations should also be “time limited” and undertaken by a “party neutral” law firm.

Describing the current situation on redress as “unacceptable”, he wrote: “We are not prepared just to sit back and let time pass as far too many have already died along the way, and this matter needs to be brought to completion now.”

He also described a 40-day “delay” to claims before victims receive their initial offer as “extremely unfair” and projected that at the “current rate” redress would not be paid to everyone until 2027.

Jonathan Reynolds, the business secretary, has since written to Sir Alan following on from his correspondence with the prime minister last year.

In his letter he said it is “likely” that all GLO claims will be “settled this year”.

“Ministers and civil servants in the department (for business and trade) will continue to do everything we can to ensure claims that we receive are handled in a prompt way,” he wrote.

The business secretary added that payments for “complete claims” received by the end of last year are expected to be paid before the end of March.

Sir Alan has previously said that victims may consider further legal action on financial redress and demanded a deadline of March 2025 for payment to all.

In his letter, Mr Reynolds said that “setting a deadline” would “run counter” to “easing the strain” on the “most vulnerable claimants” who have “found it stressful to engage with the process”.

He continued: “It could be damaging to some GLO members’ mental health and might limit their ability to claim their full redress.”

The secretary of state added that the department shared Sir Alan’s view that the “victims of the horrendous scandal deserve closure as soon as possible”.

In addition, Mr Reynolds invited Sir Alan to a meeting to “discuss any ideas” for “practical ways in which we can improve matters for the GLO group”.

A spokesperson from the Department for Business and Trade said: “We pay tribute to Sir Alan Bates and the tireless campaigning he has done to get justice for the thousands of innocent postmasters affected by the Horizon scandal.

“Postmasters have already had to wait far too long for justice which is why we are working relentlessly to provide full and fair redress and have doubled the number of payments since July.”

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Tesla approves $29bn share award to Elon Musk

Published

17 hours ago

August 4, 2025

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Tesla approves bn share award to Elon Musk

Tesla’s board has signed off a $29bn (£21.8bn) share award to Elon Musk after a court blocked an earlier package worth almost double that sum.

The new award, which amounts to 96 million new shares, is not just about keeping the electric vehicle (EV) firm’s founder in the driving seat as chief executive.

The new stock will also bolster his voting power from a current level of 13%.

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He and other shareholders have long argued that boosting his interest in the company is key to maintaining his focus after a foray into the trappings of political power at Donald Trump‘s side – a relationship that has now turned sour.

Musk is angry at the president’s tax cut and spending plans, known as the big beautiful bill. Tesla has also suffered a sales backlash as a result of Musk’s past association with Mr Trump and role in cutting federal government spending.

The company is currently focused on the roll out of a new cheaper model in a bid to boost flagging sales and challenge steep competition, particularly from China.

The headwinds have been made stronger as the Trump administration has cut support for EVs, with Musk admitting last month that it could lead to a “few rough quarters” for the company.

Tesla is currently running trials of its self-driving software and revenues are not set to reflect the anticipated rollout until late next year.

Musk had been in line for a share award worth over $50bn back in 2018 – the biggest compensation package ever seen globally.

But the board’s decision was voided by a judge in Delaware following a protracted legal fight. There is still a continuing appeal process.

Earlier this year, Tesla said its board had formed a special committee to consider some compensation matters involving Musk, without disclosing details.

The special committee said in the filing on Monday: “While we recognize Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging… we are confident that this award will incentivize Elon to remain at Tesla”.

It added that if the Delaware courts fully reinstate the 2018 “performance award”, the new interim grant would either be forfeited or offset to ensure no “double dip”.

The new compensation package is subject to shareholder approval.

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Motor finance operators can breathe big sigh of relief

Published

17 hours ago

August 4, 2025

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Motor finance operators can breathe big sigh of relief

Bank stocks have enjoyed a boost as traders digest the Supreme Court’s ruling on the car finance scandal.

Some of the country’s most exposed lenders, including Lloyds and Close Brothers, saw their share prices jump by 7.55% and 21.62% respectively.

It came after the court delivered a reprieve from a possible £44bn compensation bill.

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Banks will still most likely have to fork out over discretionary commissions – a type of commission for dealers that was linked to how high an interest rate they could get from customers.

The FCA, which banned the practice in 2021, is currently consulting on a redress scheme but the final bill is unlikely to exceed £18bn. Overall, the result has been better than expected for the banks.

Lloyds, which owns the country’s largest car finance provider Black Horse, had set aside £1.2bn to cover compensation payouts.

Following the judgment, the bank said it “currently believes that if there is any change to the provision, it is unlikely to be material in the context of the group”.

The judgment released some of the anxiety that has been weighing over the Bank’s share price.

Jonathan Pierce, banking analyst at Jefferies, said the FCA’s prediction was “consistent with our estimates, and most importantly, we think it largely de-risks Lloyds’ shares from the ‘motor issue'”.

Bank stocks have responded robustly to each twist and turn in this tale, sinking after the Court of Appeal turned against them and jumping (as much as 8% in the case of Close Brothers) when the Supreme Court allowed the appeal hearing.

Concerns about this volatility motivated the Supreme Court to deliver its judgment late in the afternoon so that traders would have time to absorb the news.

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FCA considering compensation scheme over car finance scandal – raising hopes of payouts for motorists

Published

2 days ago

August 3, 2025

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FCA considering compensation scheme over car finance scandal - raising hopes of payouts for motorists

Thousands of motorists who bought cars on finance before 2021 could be set for payouts as the Financial Conduct Authority (FCA) has said it will consult on a compensation scheme.

In a statement released on Sunday, the FCA said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.

“Where consumers have lost out, they should be appropriately compensated in an orderly, consistent and efficient way,” the statement continued.

The FCA said it estimates the cost of any scheme, including compensation and administrative costs, to be no lower than £9bn – adding that a total cost of £13.5bn is “more plausible”.

It is unclear how many people could be eligible for a pay-out. The authority estimates most individuals will probably receive less than £950 in compensation.

The consultation will be published by early October and any scheme will be finalised in time for people to start receiving compensation next year.

What motorists should do next

The FCA says you may be affected if you bought a car under a finance scheme, including hire purchase agreements, before 28 January 2021.

Anyone who has already complained does not need to do anything.

The authority added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now.”

Its website advises drivers to complain to their finance provider first.

If you’re unhappy with the response, you can then contact the Financial Ombudsman.

The FCA has said any compensation scheme will be easy to participate in, without drivers needing to use a claims management company or law firm.

It has warned motorists that doing so could end up costing you 30% of any compensation in fees.

The announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.

The court overturned a ruling that would have meant millions of motorists could have been due compensation over “secret” commission payments made to car dealers as part of finance arrangements.

The FCA’s case concerns discretionary commission arrangements (DCAs) – a practice banned in 2021.

Under these arrangements, brokers and dealers increased the amount of interest they earned without telling buyers and received more commission for it. This is said to have then incentivised sellers to maximise interest rates.

In light of the Supreme Court’s judgment, any compensation scheme could also cover non-discretionary commission arrangements, the FCA has said. These arrangements are ones where the buyer’s interest rate did not impact the dealer’s commission.

This is because part of the court’s ruling “makes clear that non-disclosure of other facts relating to the commission can make the relationship [between a salesperson and buyer] unfair,” it said.

It was previously estimated that about 40% of car finance deals included DCAs while 99% involved a commission payment to a broker.

Nikhil Rathi, chief executive of the FCA, said: “It is clear that some firms have broken the law and our rules. It’s fair for their customers to be compensated.

“We also want to ensure that the market, relied on by millions each year, can continue to work well and consumers can get a fair deal.”