The Post Office is set to close its largest compensation scheme for operators affected by the Horizon scandal this weekend, raising alarms that thousands of claimants may miss out on financial redress for losses caused by the faulty IT system.
Scheme Closure Amid High Application Rates
The Horizon Shortfall Scheme (HSS), which will cease accepting new applicants at 11.59pm on Saturday, has already received over 9,500 submissions, according to the latest public data up to 19 December. Under this scheme, post office operators with successful claims can opt for a fixed sum of £75,000 or pursue a higher amount based on their losses.
Despite the impending deadline, the Post Office continues to receive hundreds of applications each month, with 357 submissions recorded between 28 November and 19 December alone. Last year, there were more than 7,000 applications, with monthly figures never dropping below 248, indicating a consistently high rate that suggests many eligible individuals could be left uncompensated.
Legal Concerns Over Arbitrary Cutoff
Stephen Lewis, a partner at law firm Schofield Sweeney, expressed significant concerns about the closure. "The number could conceivably amount to several thousands of individuals," he said. "Given the reported number of applicants that the scheme is still receiving now, there remains a significant concern that many former postmasters will be denied redress due to an arbitrarily imposed cutoff date that they may not know exists."
The government is currently disbursing billions of pounds in compensation related to the scandal, which saw the Post Office aggressively pursue operators across the UK for alleged theft, fraud, and false accounting based on flawed data from the Horizon IT system installed in the late 1990s. Approximately 3,500 branch owner-operators were wrongly accused, with over 900 prosecuted.
Compensation Payouts and Scheme History
As of 19 December, a total of £812 million has been paid out in fully settled claims and interim payments through the HSS schemes. The original HSS launched in May 2020 with an intended closure in November of that year, but it was extended to March 2021 due to concerns that many operators were unaware of the scheme or too traumatised to apply. It was reopened in October 2022.
The two HSS schemes have attracted 13,379 submissions, accounting for 89% of all applications to schemes run by the Post Office and the Department for Business and Trade. Of the 7,294 settled claims under HSS, 92% have chosen the simpler £75,000 fixed sum payout.
Wider Impacts and Valuation Issues
Matthew Haddow, partner and head of forensic accounting at Menzies LLP, highlighted that the rush to file claims and the certainty of the £75,000 payout might mean operators are accepting less than their true losses. "Our experience, borne out throughout the various schemes, is that losses go far wider than the cost of making good a shortfall," he said. "When someone is impacted by something of this nature it is also about the impact on family, friends, trust; there are wider costs and consequences."
He urged the Post Office to disclose the total number of affected subpostmasters and assess whether the deadline is appropriate, noting that if hundreds of applications continue monthly, the cutoff may not capture everyone eligible.
Deadline Extensions and Exceptions
Sir Wyn Williams, chair of the public inquiry into the Horizon IT scandal, had suggested closing the scheme last November. However, the Post Office extended the deadline to 31 January to accommodate the Christmas period. The organisation has promoted awareness through paid advertisements in national and regional media, as well as on social media.
In a recent business and trade select committee session, Post Office chair Nigel Railton and remediation director Joanne Hanley informed MPs that the company is developing "exceptions criteria" for those unable to apply by the closing date. "We are looking at exceptions and how we deal with them for the people who cannot meet the deadline date," Railton stated. "I think we are going to give people a couple of weeks' leeway, because the deadline is obviously a hard date."
Latest UK government figures estimate that £1.33 billion has been paid out to more than 10,000 victims of the Horizon scandal, underscoring the scale of the redress effort amidst ongoing challenges.
