Former Post Office boss Paula Vennells is to hand back her CBE following the fallout of the Horizon IT scandal which led to the wrongful prosecution of hundreds of subpostmasters.
The former chief executive, who ran the Post Office while it routinely denied there was a problem with its Horizon IT system, was appointed a CBE in December 2018.
It comes after demands for her to return the honour intensified after an ITV drama brought the widespread miscarriage of justice back into the spotlight.
Convicted subpostmasters said they were “glad” the former boss would give back the honour.
More than 1.2 million people have signed a petition calling for her to be stripped of the CBE.
More than 700 Post Office branch managers were convicted after faulty Fujitsu accounting software Horizon made it look like money was missing from their shops.
A public inquiry into the scandal is ongoing.
In a statement to the PA news agency, Ms Vennells said: “I continue to support and focus on co-operating with the Inquiry and expect to be giving evidence in the coming months.
“I have so far maintained my silence as I considered it inappropriate to comment publicly while the Inquiry remains ongoing and before I have provided my oral evidence.
“I am, however, aware of the calls from subpostmasters and others to return my CBE.
“I have listened and I confirm that I return my CBE with immediate effect.
“I am truly sorry for the devastation caused to the sub-postmasters and their families, whose lives were torn apart by being wrongly accused and wrongly prosecuted as a result of the Horizon system.
“I now intend to continue to focus on assisting the Inquiry and will not make any further public comment until it has concluded.”
Ms Vennells was chief executive of the company from 2012 to 2019, taking the helm in the same year that it split from Royal Mail as part of the latter’s privatisation.
Jo Hamilton, who was wrongfully convicted in 2008 of stealing thousands of pounds from the village shop in South Warnborough, Hampshire, said the decision made her “glad”.
“It’s not just about her CBE, it’s about how disgusting the whole thing is,” she told PA.
“We’re all sick and tired of people taking money, being paid exorbitant amounts of money, and politicians taking absolutely no notice of you whatsoever… I think the people are just sick of it.”
She added: “I’m glad she’s given it back.
“It’s a shame it took just a million people to cripple her conscience.”
Varchas Patel, whose father Vipin was wrongfully convicted of fraud in 2011 after being accused of stealing £75,000 from his Post Office branch in Oxford, said: “My initial reaction is good, I’m glad. She doesn’t deserve that CBE, she never did deserve that CBE.
“Now the big question for me is who gave her that CBE?
“When she was given that CBE… there were two other things that happened – one, she was given a CBE, two, she was given a seat at the Cabinet Office and three, she was given a job as the chair of the Imperial College (Healthcare NHS Trust).
“They gave her three golden handshakes for fighting Mr (Alan) Bates in court.”
Will Mellor, who starred in the ITV drama Mr Bates Vs The Post Office and portrayed one of the victims, said the returning of Ms Vennells’ CBE was the “first step”.
“People are angered by it and they want something to be done, and you’ve seen what’s happened now with the petition, and it just shows us how strong we are when we come together,” he told the PA news agency.
Ms Vennells will not automatically lose the title because an honour can only be forfeited by the King.
But an individual may decide to renounce their honour voluntarily and take the practical steps required of those that have forfeited.
Prime Minister Rishi Sunak’s official spokesman said handing back her CBE was “obviously the right decision”.
He also said they would support “further recognition” of the work by Alan Bates and other campaigning subpostmasters.
Just updated @houseofcommons on the #horizonscandal. Together, we stand united to ensure that such a tragedy can never be allowed to happen again, we accelerate compensation and the overturning of convictions. Constructive meeting with @AlexChalkChelt about options, continuing…
— Kevin Hollinrake MP (@kevinhollinrake) January 8, 2024
Downing Street previously said Rishi Sunak would “strongly support” the Honours Forfeiture Committee if it decided to look at stripping the award.
And Post Office minister Kevin Hollinrake said Ms Vennells should consider voluntarily giving up the honour.
On Tuesday, ministers were also drawing up plans to hasten the clearing of the names of the subpostmasters with wrongful criminal convictions.
Mr Hollinrake vowed on Monday to “leave no stone unturned” amid pressure to quash the convictions and speed up the awarding of compensation to those affected by the Horizon IT system error.
