The High Court has been told there is currently no money to pay Police Service of Northern Ireland (PSNI) staff any compensation over the major data breach two years ago.

The PSNI has already accepted liability for the incident and talks to settle claims have been taking place for a year.

The incident involved the accidental release of some personal details of all 9,400 officers and staff.

Edwards Solicitors, a law firm representing many of those involved, said it is “extremely disappointed and frustrated” by developments.

A PSNI statement was read out in court on Wednesday.

It stated that despite the Department of Justice and the Department of Finance approving the case for a “universal offer” to individuals, the total figure is presently unaffordable.

“The PSNI cannot proceed to make an offer to settle as the total figure is not affordable within current PSNI funding.”

Details of what could be offered to individuals have not been made public.

But a previously published PSNI estimate put the bill at more than £100m.

It is understood chief constable Jon Boutcher met Justice Minister Naomi Long to discuss the issue this week.

Philip Gordon, Head of Litigation at Edwards Solicitors, said: “We are extremely disappointed and frustrated that it has taken until now for the PSNI to raise such a crucial issue.

“The data breach took place just over two years ago and proceedings were issued in October 2023.”

Mr Gordon added: “On numerous occasions, the court was told that a ‘universal offer’ was pending, subject to approval, without any mention of funding issues.

“To learn only now that funding to allow a resolution remains in dispute is not acceptable for those affected by the data breach.”

The Chair of the Police Federation Liam Kelly, who represents rank and file officers, said: “This is a total mess. There is now an urgent need for our devolved Executive to go to government for help.”