POST OFFICE bosses must repay massive bonuses that they incorrectly received for working on an inquiry into the wrongful prosecution of hundreds of the publicly owned company’s workers, MPs demanded today.

Many subpostmasters were convicted as a result of accounting errors caused by the faulty Horizon IT system over a 20-year period.

Some have had their convictions overturned and have received compensation since a government-initiated independent inquiry into the scandal, led by retired judge Sir Wyn Williams, was launched in 2020.

But the probe, originally intended to take just four months, was converted into a public inquiry in June 2021, meaning that it would take much longer. It was due to be completed last autumn but is still ongoing.

Despite the delay, members of the Post Office remuneration committee paid bonuses intended to mark the end of probe after debating “long and hard,” its former chairwoman Lisa Harrington told the business and trade select committee today.

The reasons for doing so were not recorded in meeting minutes, a fact which current remuneration committee chairwoman Amanda Burton described as “extremely unfortunate.”

When the firm’s annual report for 2021-22 was published, it incorrectly said that Sir Wyn had approved the payments.

Post Office chief executive Nick Read apologised for the error, while the company’s chairman Henry Staunton said it was “baffling” that the mistake had not been picked up.

Business committee chairman Darren Jones, a Labour MP, asked: “Many victims of the Horizon scandal will be hearing your apologies and saying they weren’t allowed to apologise for something that wasn’t their fault. What are the consequences for any of you?”

Mr Read, who pocketed a £455,000 bonus on top of his £415,000 annual salary, replied: “I do think it was a mistake. I don’t think there was anything dishonest.”

The former army captain confirmed that he had joined most managers in paying back a portion of his bonus, but his voluntary contribution amounted to just £7,000. 

Former Labour Party chairman Ian Lavery said that he was “astounded,” adding: “Mr Read is being paid Champions League wages for First Division performance.

“People are quite entitled to feel that this has been a grubby backroom financial deal.

“Why on Earth do you believe that you should have had a £455,000 bonus? What makes you so special when other people in the Post Office are on the real living wage?”

Mr Read repeatedly said he was “very conscious that I’m very well paid.”