The former Post Office chair, Henry Staunton, has made serious allegations against the government regarding the delay in compensation payments for sub-postmasters. Staunton claimed he was instructed to stall payouts to allow the government to "limp into the election" for financial reasons. In response, Business Secretary Kemi Badenoch vehemently denied these claims, accusing Staunton of spreading falsehoods and providing made-up anecdotes.

The dispute between Staunton and Badenoch arose following Staunton's dismissal from his position as Post Office chair in January. Despite Badenoch's statement that the dismissal was due to concerns about Staunton's behavior and a formal investigation into allegations of bullying, Staunton maintained his stance that the delay in compensation payments was a primary issue that needed to be addressed.

The controversy further escalated as Staunton released a statement standing by his comments and providing evidence in the form of a file note he had emailed to himself and colleagues, which is traceable on the Post Office server. The government denied the claims of delaying compensation and criticized Staunton for his statements, calling them disgraceful.

The Post Office scandal dates back to the period between 1999 and 2015, where a faulty computer system called Horizon led to wrongful prosecutions of hundreds of sub-postmasters and mistresses. The government has promised to quash convictions and provide compensation, but concerns have been raised about the speed and complexity of victims securing financial redress, with only 33 claims fully settled.

The conflicting accounts from Staunton and Badenoch have created a stark division in the narrative surrounding the Post Office scandal. Labour's shadow business secretary, Jonathan Reynolds, emphasized the need for transparency and clarity as the two sides present contrasting versions of events. The matter remains unresolved as stakeholders await further developments in the ongoing controversy.