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Lawyers for Harrods are proposing six-figure payouts to settle claims brought by sexual abuse victims of the London department store’s former owner, Mohamed al Fayed.

Sky News has learnt that MPL Legal, which is coordinating a redress scheme on behalf of the world-famous retailer, has told potential claimants that they could be eligible for general damages lump sums of up to £110,000 or £200,000, depending upon claimants’ willingness to submit to a psychiatric assessment arranged by the company.

A document seen by Sky News suggests that victims of Mr al Fayed who choose a “non-medical pathway” would be eligible for “general damages limited to compensation for sexual assault of up to £110,000”, with “aggravated damages [of] up to £15,000”, and “wrongful testing fixed payment(s) up to £7,500”.

Claimants who agree to an assessment by a scheme consultant psychiatrist – referred to in the document as the “medical pathway” – would be eligible for general damages of up to £200,000, further payments equivalent to those potentially awarded to non-medical claimants, as well as treatment costs “past and future supported by the medical report” and a “work impact payment capped at £110,000”.

The “wrongful testing” payments refer to women who were forced to undergo unnecessary and intrusive medical examinations demanded by Mr al Fayed, while the “work impact payments” relate to loss of earnings triggered by, for example, the unjustified termination of victims’ employment at Harrods.

The draft terms raise the prospect that some of the former Harrods owner’s victims could receive payments of more than £300,000.

However, the decision to impose a further psychiatric assessment in order to access the largest sums available under the scheme may anger claimants who have already endured years of psychological trauma after being abused by Mr al Fayed.

More on Mohamed Al Fayed

Those who opt to pursue the “medical pathway” nevertheless face a protracted wait to receive their payouts.

The MLP document said it would take up to six months to produce a medical report, after which a claimant would have 21 days to submit questions relating to it.

An offer of compensation would then be made within 35 days, it said, after which a claimant could accept the offer, appeal to an Independent Appeals Panel or leave the scheme and pursue an alternative form of redress.

The proposed terms are understood to be preliminary and subject to ongoing consultation, and will not be concluded until the end of this month, according to sources close to the process.

If the scheme is finalised along lines similar to those being consulted on, it would likely result in a total compensation bill for Harrods running to tens of millions of pounds.

The final cost of compensating victims of a man now regarded as one of Britain’s most notorious sex offenders will, though, be unclear until the number of claimants and their decisions about which compensation route to pursue have been determined.

Responding to an enquiry from Sky News this weekend, a Harrods spokesperson said: “It would be premature for us to comment on the nature and details of a scheme that is currently under consultation.

“We are actively inviting the valuable input from Survivors and their legal representatives to establish the final scheme that aims to be survivor-first, trauma-informed, and fair in its approach to compensation.

“Further updates will be provided once the consultation period is complete.”

Details are, however, expected to be finalised in the coming days.

Read more: A timeline of al Fayed sex abuse claims

According to a document published on a website set up by MPL Legal for the purposes of administering the redress scheme, “Harrods and MPL Legal are undertaking a period of consultation regarding the compensation scheme in which we will receive detailed feedback from interested parties, including several legal firms representing survivors, leading Counsel and Dame Jasvinder [Sanghera], the Independent Survivor Advocate”.

“It is anticipated the final compensation scheme will be published and survivors will be able to access application forms from 31 March 2025.”

Mr al Fayed, who died in 2023, owned Harrods for 25 years, selling it in 2010 to Qatar Holding, one of the Gulf state’s sovereign wealth funds, for £1.5bn.

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‘Many more’ likely abused by Fayed

His reign of terror at the Knightsbridge store is thought to have involved hundreds of predominantly young female victims, with former Fulham women’s players also alleging sexual abuse by the billionaire Egyptian.

Mr al Fayed also owned Fulham Football Club for a number of years.

The MPL Legal document seen by Sky News said the redress scheme would “provide options for survivors – an alternative route to the court process”, and that it would “hopefully avoid an adversarial approach which also risks retraumatising survivors”.

It added that the scheme would be “as inclusive as possible – we want the scheme to work for as many survivors as we can”.

Under the heading “Scheme principles”, MPL said it represented “an alternative to litigation, but a survivor can leave the scheme at any time and pursue the claim through the court system”.

It said it hoped that law firms engaging with the scheme “will ensure survivors receive 100% of the compensation”.

“The level of compensation available through the scheme has been designed to mirror the court’s approach,” it added.

Read more:
‘I had to barricade myself in bedroom during work trip’, accuser says
Ex-flight attendant says she was sacked for refusing to sleep with al Fayed

It also said there were “certain classifications of cases which may not be suitable for the scheme, for example if a survivor wishes to claim a full loss of earnings”.

Last October, lawyers acting for victims of Mr al Fayed said they had received more than 420 enquiries about potential claims, although it is unclear how many more have come forward in the six months since.

In a section headed “Eligibility”, MPL Legal said Harrods “retains discretion to review eligibility on a case by case basis”.

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Bianca Gascoigne said she was groomed and sexually assaulted by al Fayed when she worked at Harrods

The date of the MPL Legal document’s creation was unclear on Saturday, but one legal source said it had been produced “recently”.

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Greater risk to UK economy following Trump’s tariffs, says Bank of England

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Greater risk to UK economy following Trump's tariffs, says Bank of England

The future of the UK economy is weaker and more uncertain due to President Trump’s tariffs and conflict in the Middle East, the Bank of England has said.

“The outlook for UK growth over the coming year is a little weaker and more uncertain,” the central bank said in its biannual health check of the UK’s financial system.

Economic and financial risks have increased since the last report was published in November, as global unpredictability continued after the announcement of country-specific tariffs on 2 April, the Bank’s Financial Stability Report said.

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These risks and uncertainty, as well as geopolitical tensions, like the wars in Ukraine and the Middle East, are “particularly relevant” to UK financial stability as an open economy with a large financial sector, it said.

Pressures on government borrowing costs are “still elevated” amid significant doubts over the global economic outlook.

Had a 90-day pause on tariffs not been announced, conditions could have worsened, the report added.

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The chance of prices rising overall has also grown as tensions between Iran and Israel and the US threaten to push up energy prices.

Possible higher inflation in turn raises the prospect of more expensive borrowing from higher interest rates to bring down those price rises. This compounds the pressure on state borrowing costs.

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Trump’s tariffs: What you need to know

Mortgages

Borrowing costs for about 40% of mortgage holders are set to become costlier over the next three years as households refix to more expensive deals, affecting 3.6 million households, the Bank said.

Many homes have not refixed their mortgage since interest rates began to rise in 2021, meaning the full impact of higher rates has yet to filter through.

Those looking to get on the property ladder got a boost as the Bank said lenders could issue more loans deemed to be risky, meaning people could be able to borrow more.

Financial institutions can now have 15% of their new mortgages deemed risky every year, up from the current 9.7%.

Riskier mortgages are those with a loan value above 4.5 times the borrower’s income.

Be ‘prepared for shocks’

Despite the global and domestic economy concerns, the outlook for UK household and business resilience remained “strong”, the Bank said.

Investors, however, were warned that there could be “sharp falls in risky asset prices”, which include shares and currencies.

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If there are any vulnerabilities in non-bank lenders, it “could amplify such moves, potentially affecting the availability and cost of credit in the UK”.

“It is important that in their risk management, market participants [people involved in investing] are prepared for such shocks.”

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The steep market reaction following the tariff announcements in April “highlights that the interconnectedness of global financial markets can mean stress from one market can move quickly to others,” the report said.

Overall, though, “household and corporate borrowers remain resilient”, the Bank concluded.

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UK’s biggest housebuilders to pay record sum after CMA investigation into sensitive information-sharing

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UK's biggest housebuilders to pay record sum after CMA investigation into sensitive information-sharing

The UK’s biggest housebuilders are set to pay a record sum to fund affordable housing after the competition regulator investigated sensitive information sharing among the firms.

A total of £100m, paid for by seven companies, will go to affordable housing programmes across England, Scotland, Wales and Northern Ireland, following a Competition and Markets Authority (CMA) investigation.

The inquiry was launched last year due to concerns that the companies were sharing commercially sensitive information, which could influence the prices of new homes.

There was concern that the housebuilders – Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry – exchanged details about property sales, including pricing, viewing numbers and buyer incentives such as upgraded kitchens or stamp duty contributions.

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It’s resulted in an agreement to make the combined £100m payment – the largest secured via a commitment from companies under CMA investigation. Hundreds of new homes could be funded with the money, the CMA said, helping low-income households, first-time buyers and vulnerable people.

The businesses have voluntarily agreed to pay the sum and have not acknowledged wrongdoing. No finding of rule-breaking or illegality has been made.

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What next?

They have also offered to sign up to legally binding commitments to prevent anticompetitive behaviour.

Among the proposals advanced by the companies was an agreement not to share some information, like prices houses were sold for, with other housebuilders, except in limited circumstances, and to work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing.

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The CMA has said it will consult on the changes.

If accepted, the commitments will become legally binding, and the CMA will not need to decide whether the housebuilders broke competition law.

Initially, eight companies were under investigation, but following a merger of Barratt Homes and Redrow, the number became seven.

“Housing is a critical sector for the UK economy and housing costs are a substantial part of people’s monthly spend, so it’s essential that competition works well. This keeps prices as low as possible and increases choice,” the CMA chief executive, Sarah Cardell, said.

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At least 13 people may have taken their own lives linked to Post Office scandal, public inquiry finds

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At least 13 people may have taken their own lives linked to Post Office scandal, public inquiry finds

At least 13 people may have taken their own lives after being accused of wrongdoing based on evidence from the Horizon IT system that the Post Office and developers Fujitsu knew could be false, the public inquiry has found.

A further 59 people told the inquiry they considered ending their lives, 10 of whom tried on at least one occasion, while other postmasters and family members recount suffering from alcoholism and mental health disorders including anorexia and depression, family breakup, divorce, bankruptcy and personal abuse.

Follow latest on public inquiry into Post Office scandal

Writing in the first volume of the Post Office Horizon IT Inquiry report, chairman Sir Wyn Williams concludes that this enormous personal toll came despite senior employees at the Post Office knowing the Horizon IT system could produce accounts “which were illusory rather than real” even before it was rolled out to branches.

Sir Wyn said: “I am satisfied from the evidence that I have heard that a number of senior, and not so senior, employees of the Post Office knew or, at the very least, should have known that Legacy Horizon was capable of error… Yet, for all practical purposes, throughout the lifetime of Legacy Horizon, the Post Office maintained the fiction that its data was always accurate.”

Referring to the updated version of Horizon, known as Horizon Online, which also had “bugs errors and defects” that could create illusory accounts, he said: “I am satisfied that a number of employees of Fujitsu and the Post Office knew that this was so.”

The first volume of the report focuses on what Sir Wyn calls the “disastrous” impact of false accusations made against at least 1,000 postmasters, and the various redress schemes the Post Office and government has established since miscarriages of justice were identified and proven.

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‘It stole a lot from me’

Recommendations regarding the conduct of senior management of the Post Office, Fujitsu and ministers will come in a subsequent report, but Sir Wyn is clear that unjust and flawed prosecutions were knowingly pursued.

“All of these people are properly to be regarded as victims of wholly unacceptable behaviour perpetrated by a number of individuals employed by and/or associated with the Post Office and Fujitsu from time to time and by the Post Office and Fujitsu as institutions,” he says.

What are the inquiry’s recommendations?

Calling for urgent action from government and the Post Office to ensure “full and fair compensation”, he makes 19 recommendations including:

• Government and the Post Office to agree a definition of “full and fair” compensation to be used when agreeing payouts
• Ending “unnecessarily adversarial attitude” to initial offers that have depressed the value of payouts, ⁠and ensuring consistency across all four compensation schemes
• The creation of a standing body to administer financial redress to people wronged by public bodies
• Compensation to be extended to close family members of those affected who have suffered “serious negative consequences”
• The Post Office, Fujitsu and government agreeing a programme for “restorative justice”, a process that brings together those that have suffered harm with those that have caused it

Regarding the human impact of the Post Office’s pursuit of postmasters, including its use of unique powers of prosecution, Sir Wyn writes: “I do not think it is easy to exaggerate the trauma which persons are likely to suffer when they are the subject of criminal investigation, prosecution, conviction and sentence.”

He says that even the process of being interviewed under caution by Post Office investigators “will have been troubling at best and harrowing at worst”.

Read more:
Post Office inquiry lays bare heart-breaking legacy – analysis

‘Hostile and abusive behaviour’

The report finds that those wrongfully convicted were “subject to hostile and abusive behaviour” in their local communities, felt shame and embarrassment, with some feeling forced to move.

Detailing the impact on close family members of those prosecuted, Sir Wyn writes: “Wives, husbands, children and parents endured very significant suffering in the form of distress, worry and disruption to home life, in employment and education.

“In a number of cases, relationships with spouses broke down and ended in divorce or separation.

“In the most egregious cases, family members themselves suffered psychiatric illnesses or psychological problems and very significant financial losses… their suffering has been acute.”

The report includes 17 case studies of those affected by the scandal including some who have never spoken publicly before. They include Millie Castleton, daughter of Lee Castleton, one of the first postmasters prosecuted.

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Three things you need to know about Post Office report

She told the inquiry how her family being “branded thieves and liars” affected her mental health, and contributed to a diagnosis of anorexia that forced her to drop out of university.

Her account concludes: “Even now as I go into my career, I still find it so incredibly hard to trust anyone, even subconsciously. I sabotage myself by not asking for help with anything.

“I’m trying hard to break this cycle but I’m 26 and am very conscious that I may never be able to fully commit to natural trust. But my family is still fighting. I’m still fighting, as are many hundreds involved in the Post Office trial.”

Business Secretary Jonathan Reynolds said the inquiry’s report “marks an important milestone for sub-postmasters and their families”.

He added that he was “committed to ensuring wronged sub-postmasters are given full, fair, and prompt redress”.

“The recommendations contained in Sir Wyn’s report require careful reflection, including on further action to complete the redress schemes,” Mr Reynolds said.

“Government will promptly respond to the recommendations in full in parliament.”

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