Source · Select Committees · Public Accounts Committee
Recommendation 42
42
Accepted
Complexity and uncertainty of Post Office compensation provisions delayed accounts completion.
Conclusion
The third reason given by the Department for delays to the completion of its 2023–24 accounts was the Post Office provisions. This was due to: the complexity in estimating the provision liabilities; the effort required to justify those estimates; and the need to ensure the alignment of estimates with the Post Office Limited’s own accounts.73 As set out earlier in this report, the C&AG qualified his opinion on two of the compensation scheme provisions. This was due to the significant uncertainty associated with the value and volume of future redress payments and the limited data available to support the Department’s assumptions.74
Government Response Summary
The government agrees with the committee's conclusion regarding the complexities of Post Office provisions delaying accounts. It commits to finalizing HSS letters by September 2025, reviewing the HSS closure date recommendation by October 2025, and writing to unregistered HCRS individuals by September 2025 to encourage applications.
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.