Between 2000 and 2015, thousands of postmasters were impacted by IT issues.

The Daily Mail can reveal that hundreds of victims of the Post Office IT debacle have been given an average of just £10,000 in compensation.

The payouts, which pale in comparison to the six-figure losses experienced by many postmasters, were dubbed ‘absolutely appalling’ by lawmakers last night.

The figure refers to a compensation program for postmasters who suffered financial losses but were not convicted.

MPs also slammed separate negotiations for hundreds of victims who were both convicted of crimes and suffered financial losses, arguing that the system is resulting in poor settlements.

Campaigners blamed the Post Office and ministers for adopting ‘shameful and miserly’ tactics. Lord Falconer, a top barrister and former minister, criticised the ‘persistent refusal’ to face up to paying ‘proper compensation’.

Conservative MP Andrew Bridgen said compensation must reflect that postmasters were ‘taken from a position of trust and labelled as thieves’.

Tory peer Lord Arbuthnot said: ‘Given the Post Office’s behaviour, compensation must be more than realistic, it must be generous.’

Thirty-three postmasters have died while awaiting justice, four of them committed suicide. The Mail can now reveal:

• Despite the fact that the formal system was started two years ago, just about half of the claims have been satisfied.
• The application form is defective, and it fails to inform victims about the potentially substantial payments owed to them.
• Postmasters have been given ‘inadequate’ or no legal fees funds to prosecute their claims;
• Victims allege ministers are attempting to ‘crush us down till we take anything,’
• while Postmasters wrongfully convicted of crimes have had their claims ‘reduced in half.’

More than 3,500 postmasters were prosecuted, fired, or ordered to pay back money after monies went’missing’ from their accounts between 2000 and 2015. It was later discovered that dozens of flaws in the computer system known as Horizon were to blame.

More than a dozen postmasters, legal representatives, and campaigners were interviewed by the Mail. They claim that the Post Office and the politicians in charge of the budget have tried to keep the cost of the scandal to a minimum.

The Historical Shortfall Scheme, which is for postmasters who have lost money but have not been convicted, is the first option of obtaining compensation.

The first 933 postmasters had received £9.4 million – an average of £10,075 apiece – as of the beginning of May. ‘This appears to be a fairly low amount,’ said Neil Hudgell, who represents dozens of postmasters. Many people believe that their ongoing agony is being exploited as a hammer to extract pitiful settlement offers.’

The majority of victims have accepted offers without seeking legal assistance, and those with complicated situations have been offered only a few hours of legal time. There are also serious issues about the second path to compensation: damages for postmasters wrongfully convicted of crimes or prosecuted’maliciously.’

Lord Falconer labelled the tactics ‘absolutely disgraceful’.

He said: ‘These people are entitled to proper compensation. The Post Office will never get rid of the problem until they do. The Government appears not to be willing to fund what this requires. The more they fiddle around to reduce damages, the more they will go up. It is an appalling case.’