Al Fayed abuse claims could top £150m, says law firm

More than 275 individuals who allege they were sexually abused by Mohamed Al Fayed, the former owner of Harrods, have lodged claims that could collectively be worth between £100 million and £150 million. This assessment comes from KP Law, a legal firm that is representing over half of the known survivors. The firm calculates the combined value of these claims to be two to three times the sum Harrods has allocated for compensation payouts.

Harrods' most recent annual report, published in August, indicated that the department store had £57 million set aside for compensation in 2025. By January 2026, following payouts totalling £4.1 million, this fund had been reduced to £51.8 million, excluding legal and administrative expenses. This remaining amount falls significantly short of the total value of claims being pursued by KP Law's clients.

Criticism of Harrods' Compensation Scheme

Lucy Traynor, a senior associate at KP Law, stated that Harrods' internal compensation scheme, which ceased accepting new claims on 31 March, was inadequate. She argued that the scheme did not sufficiently account for the profound impact the alleged abuse had on survivors' lives and professional trajectories. Traynor noted that evidence suggests the average claim value is substantially higher than the average payment made under the Harrods scheme, with some clients seeking millions for lost earnings.

Harrods reported that its redress scheme had settled 113 claims by mid-February of this year, with over 50 of those settlements occurring before that date. Based on these figures, KP Law estimates the average payout under the Harrods scheme to be approximately £82,000, potentially lower given the number of settlements. This figure is considerably less than the maximum payout of £385,000 offered by the scheme, which included general damages, work impact payments, and costs for medical treatment.

A spokesperson for Harrods stated that the store does not comment on specific settlement amounts but affirmed its commitment to compensating survivors for the abuse they endured. The department store has indicated that it continues to work with survivors and their legal representatives towards resolution, provided the necessary information is supplied according to legal standards. Harrods has also asserted that any suggestion of them hindering access to compensation is a misrepresentation.

Broader Allegations and Police Investigation

Over 400 allegations, encompassing rape, sexual assault, sexual exploitation, and human trafficking, have been made against Mohamed Al Fayed, who died three years ago. The Metropolitan Police have interviewed seven individuals under caution in connection with the scandal. These developments include several women being identified as victims of trafficking and a file being sent to the Crown Prosecution Service for review regarding potential charges against an 80-year-old man for indecent assaults on two women.

Survivors and their legal representatives have also voiced concerns about Harrods closing its redress scheme before recent significant advancements in the police investigation. KP Law has begun issuing formal settlement offers to Harrods and Al Fayed's estate. Negotiations reportedly stalled earlier in the summer, attributed by KP Law to the department store's actions concerning the estate's executors, though Harrods has denied this impacted survivors' access to compensation.

Harrods has reiterated that its scheme is one of several avenues for redress and compensation available to survivors. The company stated it supports all survivors in their pursuit of justice and collaborates with the Metropolitan Police on their investigation. They maintain that any claims of obstruction are inaccurate and detrimental to survivors' confidence in the process.