# UK Post Office scandal investigation underfunded while law firms earn millions

Police probe receives £6m while legal firms handling Post Office case get £330m in taxpayer funds

- **Source:** [computerweekly.com](https://www.computerweekly.com)
- **Published:** 2026-09-23
- **Topic:** [Business](https://brifing.si/c/business)
- **Original article:** <https://www.computerweekly.com/news/366650861/Law-firm-paid-200m-to-support-Post-Office-while-police-investigating-scandal-are-forced-to-beg>
- **On Brifing:** https://brifing.si/s/80b482f2-1b06-4ed0-a729-a54b32731722

## Massive legal fees vs police budget

Law firms have received over £330m in taxpayer funds for Post Office scandal-related work, with Herbert Smith Freehills alone earning £200m. Meanwhile, Operation Olympos, the police investigation into potential criminality, has been allocated just £6m for 2023-2027. This represents less than 2% of the amount paid to legal firms handling the same scandal.

## Investigation funding shortfall

Operation Olympos requires £19m in additional government funding beyond existing police budgets to properly investigate the scandal. The current £6m allocation covers only basic costs until 2027, while the investigation is expected to continue until 2030 with total costs exceeding £50m. Police commander Stephen Clayman has called for urgent additional funding.

## Compensation vs justice priorities

The £330m paid to law firms includes costs for administering compensation schemes, defending claims, and representing the Post Office in inquiries. Campaigners argue this shows government prioritizes compensating the Post Office over funding investigations into who was responsible for the scandal. The disparity raises questions about accountability priorities.

## Public inquiry cost comparison

Taxpayers paid Herbert Smith Freehills double the amount in fees to represent the Post Office in the Horizon scandal inquiry than they paid for running the inquiry itself. This revelation came from a Computer Weekly investigation in September 2023, highlighting disproportionate legal spending compared to investigative resources.

## Campaigners' outcry

Former subpostmasters Lee Castleton and Janet Skinner have condemned the funding imbalance, calling the £19m police request a 'drop in the ocean' compared to legal fees. Skinner, who was wrongly convicted, questions why the government would start an investigation without properly funding it to reach the truth.

## Historical context of scandal

The Post Office scandal, first exposed in 2009, involved faulty Horizon accounting software that led to wrongful prosecutions of subpostmasters. It's considered Britain's most widespread miscarriage of justice. The recent ITV drama 'Mr Bates vs The Post Office' reignited public anger, leading to Operation Olympos' launch in May 2024.

## Five firms outearn investigation

Five law firms working for the Post Office have each received more taxpayer money than the entire budget allocated to Operation Olympos. This includes fees for group litigation, compensation schemes, and defending claims. Campaigners argue this financial imbalance could prevent the full truth from emerging about the scandal.

## Accountability concerns

Sir Alan Bates, who led the subpostmasters' fight, warns that inadequate police funding could suppress the truth. He suggests the funding disparity may be deliberate to 'keep a lid on things.' The Home Office says it's considering further funding requests, while the investigation faces growing demands with limited resources.

## Sources covering this story

- https://www.computerweekly.com/news/366650861/Law-firm-paid-200m-to-support-Post-Office-while-police-investigating-scandal-are-forced-to-beg — 

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_Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._
