Post Office scandal compensation shake-up and new redress body revealed

Post Office IT scandal compensation schemes are to be improved and victims' legal advice to be funded , according to the government which may create an independent body to handle similar miscarriages of justice in future.

The announcements were made as part of the official response to the damning conclusions of the first volume of the Horizon inquiry's findings, released in July. It focused on the "disastrous" human impact of false theft and false accounting accusations made against at least 1,000 postmasters as a result of the faulty IT accounting system used by the Post Office.

The retired judge who chaired the two-year inquiry, Sir Wyn Williams, made 19 recommendations. Money latest: Morrisons ends free drink refills The government said on Thursday that only one would not be taken up.

Its pledges included funding of legal advice for postmasters, redress for close family members - a measure that had been previously announced - and a new appeals process, with funded legal advice, for those who have accepted Horizon Shortfall Scheme (HSS) fixed sum offers. HSS, which has been run by the Post Office and subject to widespread complaints relating to undervaluation of claims, covers compensation for those postmasters who were not wrongly convicted of any crime but lost money due to the IT shortcomings covered up.

Those who apply can choose between a £75,000 fixed sum offer or a full assessment of their case if they believe they are entitled to a higher amount. That scheme's closure to new applicants - recommended under efforts to bolster the independence of its offers - will be enacted at the end of January next year rather than in November.

It was further announced that Sir Gary Hickinbottom had been appointed as the senior lawyer to oversee the HSS. Post Office chair, Nigel Railton, said: "We have been working closely with the Department for Business and Trade to respond to the recommendations in Volume 1 of Sir Wyn Williams’ Inquiry report and to speed up redress payments to those who have been impacted by this awful scandal.

"I am pleased that we have made progress, with over £1.2bn now paid to 9,100 people across all schemes. But there is still more work to do.

"We accept the recommendation that a date should be set for the Horizon Shortfall Scheme to close. We have now agreed with the Department for Business and Trade that 31 January 2026 should be the deadline for accepting new applications into the Horizon Shortfall Scheme.

We have chosen this date, which is later than the one proposed by Sir Wyn Williams, to give potential applicants more time to consider and submit their applications after the Christmas peak period, which is particularly busy for current postmasters. "I encourage any current or former postmaster who thinks they might be eligible for the Horizon Shortfall Scheme to get in touch ahead of the closure date.

We have a dedicated claimant support team available on the phone to discuss your options, provide support, and answer any questions so we can begin to process your claim right away." The government said that a "clear definition" of what constitutes "full and fair redress" will also be published to provide greater clarity for claimants and their representatives who have long complained about their treatment. Read more:Post Office inquiry report reveals further injusticeKey points from Horizon scandal report Work has also commenced on a restorative justice project for postmasters and their families in partnership with Post Office and Fujitsu, the company responsible for the Horizon system.

A Fujitsu spokesperson said: "We have apologised for, and deeply regret, our role in sub-postmasters' suffering. Our partnership with the Restorative Justice Council, announced last month in response to the Inquiry's recommendation, reflects our commitment to building a restorative justice framework that not only supports those impacted but is also shaped by them.

"We will provide more details on this programme to Sir Wyn ahead of the Inquiry's deadline of October 31. "We remain committed to providing our full cooperation to the Inquiry as Sir Wyn prepares his final report and we are engaged with Government regarding Fujitsu's contribution to compensation." Sir Wyn's recommendation to close a HSS dispute resolution process was not accepted but the government did say it was now examining the creation of an independent body to oversee the redress process in the event of a similar scandal in future.

Business Secretary Peter Kyle said: "We must never lose sight of the wronged postmasters affected by the Horizon Scandal, which the Inquiry has highlighted so well. "There is clearly more to do to bring justice to those affected.

The recommendations we are accepting today will be a crucial step towards this.".