Overview of the Capture Scandal
The first compensation payments to victims of a second IT scandal at the Post Office have been approved and are expected to arrive in time for Christmas. This development marks a significant milestone in the long-standing struggle of sub-postmasters who were affected by the Capture system.
The Impact of the Capture System
Hundreds of sub-postmasters who used the Capture system in the 1990s experienced unexpected losses when trying to balance the books. These losses led to them being forced to hand over money, sacked, and in some cases criminally prosecuted by the Post Office. An investigation revealed that Post Office IT bosses, who produced the Capture system themselves, were aware it was capable of producing faults. However, they continued to pursue sub-postmasters for alleged shortfalls regardless of these issues.
Data obtained through a Freedom of Information request showed that the Post Office carried out hundreds of prosecutions potentially involving Capture between 1992 and 1998. 
New Compensation Scheme
The Government agreed to set up a new compensation scheme for Capture victims, which opened for applications in October. Around 50 applications have now been received, with at least five already approved as eligible for a claim. This means they have been approved for an immediate, interim payment of £10,000 pending an agreement on the full level of compensation they should receive.
Post Office minister Blair McDougall stated that compensation will be delivered “at pace” and praised the “tireless reporting” that exposed the scandal. Neil Hudgell, the solicitor representing the majority of Capture victims, welcomed the milestone but emphasized that there is still a long way to go for sub-postmasters and their families.
“I think there’s cautious positivity,” he said. “Until we understand how the applications are going to be processed and determined, it’s a real ‘wait and see’.”
Personal Stories of Victims
Lee Bowerman, 67, is among those to have submitted an application for compensation. He claims he lost at least £60,000 over four years due to losses he experienced while using the Capture system at his Post Office branch in Tredegar, Gwent, in South Wales. As the losses mounted, Bowerman was forced to borrow money from his parents before finally selling his Post Office after he was told his position was under threat. 
“I would like to think they would make an effort to get as many of those [interim compensation] payments to people as fast as they can,” Bowerman said. “If it’s just a big push to get as many of them out before Christmas, that would be helpful for a lot of people.”
Concerns Over Compensation Limits
Capture victims have expressed concerns about the Department for Business and Trade setting an “upper band limit” of £300,000 for payouts, with only exceptional circumstances allowing for higher amounts. Bowerman noted that this figure “won’t even touch the sides” for him and many others.
Victims not only handed over their own money to the Post Office to cover alleged losses, but some were also forced to sell homes and other assets, leading to mental and physical breakdowns. Some sub-postmasters died shortly after being pursued by the Post Office, with family members believing their deaths were caused by stress.
Those who were criminally prosecuted by the Post Office will not receive any compensation until their convictions have been overturned. The case of Patricia Owen, who was found guilty of theft after being prosecuted in 1998, is the first involving Capture to have been referred to the Court of Appeal. It is hoped that judges will hear the case and agree to quash the conviction in the new year.
Government Response
McDougall stated: “It’s a tribute to the campaigning of postmasters and their families, as well as tireless reporting, that we’ve been able to launch a redress scheme that will restore dignity to so many hurt by the Capture system. We’ve worked with postmasters to design a scheme where all of those who apply and are eligible, will receive a preliminary payment of £10,000, and the independent panel can award above £300,000 in exceptional circumstances. This isn’t the end of the journey, and I’m focused on delivering redress at pace so that victims can rebuild their lives whilst receiving the justice they deserve.”