Source · Select Committees · Public Accounts Committee
Recommendation 8
8
Accepted
Uncertainty in Horizon Shortfall Scheme provision primarily due to unknown volume of claimants.
Conclusion
For the Horizon Shortfall Scheme (HSS), the main uncertainty when calculating the overall settlement provision is regarding the volume of claimants. The Department told us that in order to establish the number of eligible claimants, the Post Office is writing to postmasters to make them aware of the Scheme and how to apply.11 The Department confirmed that as of 31 March 2025, 18,528 letters had been sent, with approximately a further 5,000 expected to be sent in 2025 to those not yet contacted. The response rate as of 31 March 2025 was 21% but the Post Office estimates that this will 4 Horizon Convictions Redress Scheme, HLWS43, 30 July 2024 5 DBT ARA 2023–24, pp 108-110 6 DBT ARA 2023–24, pp 107-110, 202-203 7 Q 1 8 DBT ARA 2023–24, p 200. ‘Combined Horizon Schemes provisions’ is reported under the headings ‘Post Office Limited’ and ‘Postmaster redress’. 9 Correspondence from Department for Business and Trade, 2 May 2025 10 Qq 12-15 11 Q 3 9 rise to between 25% and 30%.12 On the value per claim, the Department told us it has greater certainty over this figure, with 98% of applicants accepting the £75,000 settlement option.13
Government Response Summary
The government agrees with the committee's observations on the HSS and commits to finalizing letters to remaining eligible claimants by September 2025. It will also review the proposed HSS closure date by October 2025 and write to all unregistered HCRS individuals by September 2025 to encourage registration.
Government Response
Accepted
HM Government
Accepted
1.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2025 1.2 The Department for Business and Trade (the department) is working with the Post Office to finalise letters to be sent to remaining eligible claimants in Horizon Shortfall Scheme (HSS). Approximately 24,000 have been sent out already, but further work is taking place with 44 DWP to identify the addresses of the remaining postmasters. This is expected to be implemented by September 2025. 1.3 Sir Wyn Williams, the Chair of the Horizon IT Inquiry, has recommended through Vol 1 of the Horizon IT Inquiry report that a closure date of midnight on 27 November 2025 be set for the HSS. As with all recommendations raised in this report, the department is reviewing this and will provide a response by 10 October 2025, if not sooner. Should a closure date be agreed, the department would expect that claimants would be comprehensively communicated with so that they are aware of this deadline and how they can apply, noting the ongoing work to finalise letters referenced in paragraph 1.2. 1.4 On the Horizon Convictions Redress Scheme (HCRS), the relevant justice authority informs individuals who have had their convictions overturned by the legislation. This is the point at which they are informed that they are eligible for redress. The department is aware that not all recipients of these letters have registered with HCRS. The department will write to all individuals who have received a letter but are yet to register for redress, to encourage them to do so. We aim to complete this by the end of September 2025.