Claims for compensation from 275 survivors alleging sexual abuse by the late Mohamed Al Fayed, former owner of Harrods, could total between £100 million and £150 million, according to KP Law (KPL), the firm representing over half of the known survivors. This estimate significantly exceeds the amount Harrods has currently allocated for abuse-related payouts, suggesting that combined compensation costs for Harrods and Al Fayed’s estate may surpass £200 million.
Harrods’ most recent annual report, released in August, indicated that the retailer had disbursed £4.1 million of a £57 million fund set aside for compensation in 2025, excluding legal and administrative expenses. The report also noted a £1.1 million reduction in the compensation reserve, bringing the total to £51.8 million as of January 2026.
Lucy Traynor, senior associate at KPL, criticised Harrods’ compensation scheme, which closed to new claims on 31 March, describing it as “not fit for purpose.” Traynor argued that the scheme undervalued the severe impact the alleged abuses have had on survivors’ personal and professional lives. She pointed out that evidence suggests the average claim value pursued by KPL is several hundred thousand pounds higher than payouts issued under the Harrods scheme, with some claims reflecting losses in the millions due to diminished earnings potential.
Harrods stated it had reached settlements with 113 women through its redress programme, although it did not specify how many of these were included in the £4.1 million paid last year. The company noted that more than 50 settlements had been made by mid-February 2026.
Based on available figures, Traynor estimated the average payout under the Harrods scheme to be about £82,000 per survivor, a figure she suggested was likely lower given the number of payments confirmed. This estimate falls well below the scheme’s maximum payout of £385,000, which covers up to £200,000 in general damages, a work impact payment of up to £150,000, as well as treatment costs and compensation for wrongful medical tests related to sexually transmitted infections.
A spokesperson for Harrods declined to comment on specific settlement values but reaffirmed the company’s commitment to ensuring that all individuals eligible under its compensation scheme receive appropriate redress.
