Post Office hero Alan Bates agrees multi-million pound settlement over Horizon scandal

The Government has now agreed a deal with Mr Bates from his latest claim in the spring, one that he had previously said was less than 50 per cent of the originally proposed sum.

One source claims that the sum agreed is in the region of £4million and £5million, though this has not been confirmed.

Mr Bates had previously stated that the first offer he received, which was made in January last year, was one-sixth of what he was asking for. He described this as "derisory".

He then added the second offer was a third of the sum he was seeking, prompting him to retort by describing the system as "quasi-kangaroo courts" that "alters the goalposts as and when it chooses" in a Sunday Times article.

"Claims are, and have been, knocked back on the basis that legally you would not be able to make them, or that the parameters of the scheme do not extend to certain items," he wrote.

A government spokesperson said: "We pay tribute to Sir Alan Bates for his long record of campaigning on behalf of victims and have now paid out over £1.2billion to more than 9,000 victims.

"We can confirm that Sir Alan's claim has reached the end of the scheme process and been settled."

Despite years of campaigning, it was ITV's drama "Mr Bates vs the Post Office" that saw the Government accelerate their efforts to find a resolution for the victims. This was released in January of last year.

Along with more than half of the sub-postmasters that had been affected, Mr Bates sued the Post Office in 2017, winning £58million.

However, after significant legal fees, they were ultimately left with just £12million, prompting the Government establish a separate compensation scheme.

The scandal shattered the Post Office's reputation. Despite the Post Office and Fujitsu being aware of the faulty Horizon system, hundreds of sub-postmasters were prosecuted after being accused of wrongdoing.

The IT system, that was installed in October 2000, started showing financial discrepancies within the first two months.

Sub-postmasters were left unable to pay the shortfall, with hundreds losing their business or facing prosecution.

While Mr Bates himself was not prosecuted, his contract was terminated in November 2003 as a result of the false accusations and he lost the £65,000 he had invested into the business.

Sir Wyn Williams's first public inquiry into the scandal concluded that at least 13 people could have taken their own lives after being accused of wrongdoing.

Mr Bates, along with other sub-postmasters, founded the Justice For Subpostmasters Alliance in 2009.

Originally, less than two dozen attended the events, but it quickly garnered momentum that saw hundreds turn up.

Mr Bates received a knighthood in September last year after exposing the scandal.