Legal regulators have pledged to assist subpostmasters raising concerns about fees charged by lawyers in relation to compensation claims over the Post Office Horizon scandal.

The Solicitors Regulation Authority (SRA) and the Bar Standards Board (BSB) responded to a formal request for support from the Horizon Compensation Advisory Board (HCAB) — the independent body overseeing redress across the four compensation schemes now operating for victims of the Post Office’s faulty IT system.

The HCAB highlighted concerns that some lawyers may be charging claimants for work already covered under publicly funded schemes, raising ethical and regulatory questions about transparency and fairness — particularly given the vulnerability of many of those affected.

Questions Over Fees in Government-Funded Compensation

The HCAB flagged that while legal costs are reimbursed under several of the compensation schemes — including the group litigation order (GLO) scheme — some lawyers have nonetheless charged subpostmasters separately.

In the Horizon shortfall scheme, no legal fees are paid to lawyers representing claimants applying for the £75,000 fixed-sum award, yet a number of claimants have still opted for legal representation — creating what the Board calls “the potential for problematic charging”.

According to the HCAB, the concerns centre on three key issues:

1. Whether lawyers should be charging at all under schemes where legal costs are covered.
2. If charging is permitted, whether the fees and agreements are reasonable.
3. Whether the overall approach to fee arrangements — including requests for interim payments or enforcement — is appropriate, given the “severe vulnerabilities” of some claimants.

Legal Ethics and Vulnerability

Professor Richard Moorhead, a member of the advisory board and expert in legal ethics, told Legal Futures that lawyers should start from the presumption that no additional client charges should apply where public funding is available.

“Any charging arrangements that are agreed have to be fair and proper and fully consented to by the subpostmasters.

“Some of whom are very vulnerable.”

The Board said it believes only a small minority of lawyers are charging fees to their clients, but argued that the matter nonetheless requires “sympathetic, sensitive and expeditious handling”.

Regulators Respond

In separate letters to the regulators, the HCAB requested clarity on how the SRA and BSB could support affected subpostmasters.

Paul Philip, chief executive of the SRA, confirmed that a dedicated point of contact had been set up.

“We would be keen to hear from subpostmasters who have experienced issues around fees charged for legal services — particularly if they have concerns about or do not understand what they are being asked to pay for.”

Mark Neale, Director General of the BSB, also welcomed the engagement and pledged support.

“We shall be very happy to support the Board in any way we can in addressing conduct matters that arise from the handling by barristers of compensation cases.”

Background and Compensation

The Horizon scandal, now widely recognised as one of the most significant miscarriages of justice in recent UK history, saw hundreds of subpostmasters wrongly prosecuted based on data from a flawed IT system.

Multiple compensation schemes have since been set up to address the impact, including:

• The Group Litigation Order scheme
• The Horizon shortfall scheme
• The Overturned Convictions scheme
• The Suspense Account scheme

The HCAB, backed by the Department for Business and Trade, is chaired by Professor Christopher Hodges and includes prominent advocates for justice in the scandal, including Lord Arbuthnot, Lord Beamish and Professor Moorhead.