Executive will ‘have to deal’ with compensation costs from PSNI data breach

The Stormont Executive will “have to deal” with the costs of a major PSNI data breach, Finance Minister John O’Dowd has said.

Mr O’Dowd said he would not publicly discuss Executive business after Justice Minister Naomi Long had earlier said money had been ring-fenced to settle claims arising from the leak.

This led to confusion, with Chief Constable Jon Boutcher initially releasing a statement welcoming the “announcement” from the Justice Minister and then later stating his “disappointment” that the funding had not yet been secured.

The PSNI breach occurred in August 2023 when a spreadsheet released as part of a freedom of information request held hidden data with the initials, surname, rank and role of all PSNI officers and staff.

Police later said the information had got into the hands of dissident republicans.

In the aftermath of the leak, some officers chose to relocate their homes and change daily routines.

The PSNI accepted liability for the data breach and a test case over potential compensation has begun in the courts.

The Stormont Executive had made a reserve claim to the Treasury to cover an expected £120 million compensation bill, but this was rejected.

Ms Long told the BBC Nolan Show that the Executive had now agreed to set aside “around £119 million” to compensate officers.

She said: “What the Executive has agreed is that, failing a change of heart from Treasury, it will ringfence money against that settlement.

“That now empowers the Chief Constable to settle those cases that are willing to be settled.”

Finance Committee chairman Matthew O’Toole asked Mr O’Dowd to confirm the Justice Minister’s comments.

Mr O’Dowd said: “I have heard reports of what the Justice Minister said, I haven’t heard the interview. I am not in a position to discuss Executive business.

“It is quite clear the Executive is going to have to deal with the data breach payments.

“The data breach should never have happened. The proper processes and protocols should have been in place within the PSNI to ensure that data breach never happened and didn’t place the added pressure and concern on officers and civilian staff.

“In terms of where we are at at this stage, my understanding is that those cost pressures will not crystallise until the next financial year.

“Therefore I think it is only right and proper that when the Executive is sitting down and planning its three year budget, that they take that into account and they are going to have to deal with it.”

Mr Boutcher released a statement on Wednesday afternoon where he “welcomed the Justice Minister’s announcement today on funding being secured for the data breach compensation”.

He added: “I am yet to receive official notification of what this will look like but it is another important step in recognising the impact this has had on our officers and staff, and allowing clarity and reassurance for those affected.

“It signals that the government recognises the seriousness and importance of delivering a fair and timely resolution.

“Claimants can now have confidence that a settlement process will progress next year and I will be able to provide more detail on that when I receive it from the minister’s office.”

However, just over two hours later Mr Boutcher released a second statement after “seeking clarification” from the Department of Justice.

He said: “It is disappointing to learn that the funding has not yet been agreed by the Executive for data breach compensation, which I know will be a further blow to the our officers and staff.

“We appreciate the minister’s continued efforts to secure agreement from the Executive and we remain determined that a positive resolution can still be achieved.

“I will continue to lobby for this funding for our officers and staff who every day serve our communities with professionalism, resilience and a deep sense of duty, often in challenging and unseen circumstances.”