°Ç¸ç³Ô¹Ï

Horizon Family Members Redress SchemeÌý

Dear Rebekah and Katie,

Thank you for meeting me and my officials over recent months, and for your tireless work in representing the families of postmasters. In the light of your various discussions with me and with my officials, we have developed our proposals for the way in which the redress scheme for family members of postmasters should work.Ìý

This letter sets out more details of our proposals. I am publishing it and reporting it to Parliament. You will be familiar with much of the thinking from your conversations with my officials. As the scheme is still in development, some of the details below may change.Ìý

The outline scheme announced last July focussed on personal injury, which in many cases we expect to mean damage to mental health. As you know, that outline scheme would have required contemporaneous evidence of medical issues or a fresh assessment of an ongoing medical condition arising from Horizon.Ìý

Because you told us that few people would be able to provide such evidence, we have created an alternative route to redress for people whose postmaster relatives faced some of the most stressful specific consequences of the Horizon scandal (such as prosecution or bankruptcy) and hence were most likely to have experienced significant harm. So long as we can confirm the event was experienced by the claimant’s postmaster relative, we will not require the family member to evidence any further consequences.ÌýWe hope this will minimise the traumatic effect of providing detailed medical evidence that many postmasters have noted in other schemes.Ìý

Because we are not asking claimants for specific evidence of any further harm where a claim is linked to a specific event, we cannot differentiate between claims. We will therefore offer flat-rate ‘recognition payments’ to people who claim through this route. This will, unfortunately, mean that some receive an amount which differs from what they might have received if they had been able to make an evidenced personal injury claim. However, given the evidential problems, the alternative would have been to give them no compensation at all. Should they wish to do so, those who do have evidence will still be able to apply based upon contemporaneous evidence or a fresh medical assessment and will receive redress tailored to the specific injury they suffered.Ìý

Details of the proposed scheme are set out in the attached paper. I am publishing this letter and copying it to other interested parties. I would welcome feedback on it and my officials would be happy to discuss further with you.Ìý

We remain committed to delivering swift and fair redress, recognising the enduring hardship, and the need for a trusted, transparent process ensuring those family members most seriously affected by the Horizon system receive what they deserve.Ìý

I believe that this enhanced scheme is the best we can do to meet our original promise, and Sir Wyn Williams’s recommendation, that we should help those family members who were most severely affected by the scandal.Ìý

Yours sincerely,

µþ±ô²¹¾±°ù M³¦¶Ù´Ç³Ü²µ²¹±ô±ô M±ÊÌý
Minister for Small Businesses & Economic TransformationÌý

Horizon family members redress scheme: detailed proposals

Eligibility ReviewÌý

To be eligible for the scheme, claimants mustÌýdemonstrateÌýthat they were the partner, spouse, child, parent, or sibling of the affected postmaster, and that they were living with the postmaster at the time the postmaster was affected by Horizon.Ìý

EachÌýclaimantÌýwill undergoÌýan initialÌýeligibility review beforeÌýthe substance ofÌýtheir claimÌýisÌýassessed.Ìý

OptionsÌýfor how to claimÌý

To ensure the process is fair and accessible, the scheme will provide 2 distinct routes for applicants seeking redress:Ìý

• aÌýroute based on individual assessment of personal injury as outlined in the original announcement
• aÌýroute based on events which are likely to haveÌýcausedÌýsignificant harmÌýtoÌýfamily members

Applicants with both event-based and individually-assessed claims willÌýhave to choose an award from one route or the other, not both.ÌýApplicantsÌýcan chooseÌýto see both offers,ÌýwhereÌýthey areÌýeligibleÌýfor bothÌýroutes,ÌýandÌýchoose whichever award is of higher value, to ensure they are not unfairly disadvantaged.

Event-based claimsÌý

Under the event-based route, eligible applicants mayÌýapply forÌýaÌýflatÌýrecognition payment based on events experienced within their familyÌýwhich may have caused them harm. The relevant events we plan to use for this route are theÌýpostmaster’s:Ìý

• bankruptcy
• prosecution (whether or notÌýleading to conviction or imprisonment)
• wrongful death

TheseÌýwillÌýall be objectively tested by reference to the redress settlement of the postmaster relative.ÌýÌý

This will be a light‑touch process that will not require legal knowledge or submission of any evidence (beyond thatÌýrequiredÌýto show eligibility for the scheme). Events-based claims will be verified usingÌýthe Department for Business and Trade (DBT)Ìýand Post Office Limited’sÌýexisting data.Ìý

Any applicant who is eligible for the scheme and for whom there is evidence of the relevant event having occurred will be entitled to a recognition payment, regardless of the actual impact on them.ÌýBecause we will not be asking for evidence of the harm suffered by individuals making event-based claims, this recognition payment will be aÌýflat amountÌýdepending only on the event or events experienced.ÌýÌý

DBT is still considering theÌýappropriate levelÌýforÌýrecognitionÌýpayments.ÌýOne potential comparator isÌýtheÌýamountÌýofÌý£15,120Ìýto which relatives are entitled under the Fatal Accidents Act 1976ÌýinÌýtheÌýevent ofÌýwrongful death.ÌýWe will be in touch with further information relating to recognition payment levelsÌýin due course.ÌýÌý

We recognise that this approach will mean that some applicants receive an amount which differsÌýfromÌýwhat theyÌýmightÌýhave received under an assessed claim.ÌýThis is unfortunately the unavoidable consequence of this light-touch approachÌýwhere we do not ask for evidence of actual harm.ÌýAny move to tailor awards further would requireÌýmore evidence and would in turn mean fewer applicants would qualifyÌýfor an award.

Individually-assessedÌýclaimsÌý

ForÌýsomeÌýapplicantsÌýa more detailed assessment, tailored to their individual circumstances, will better meet their needs. In these instances, applicants will have theÌýoptionÌýto make aÌýan individually-assessedÌýpersonal injury claim. Applicants will be asked to provide contemporaneous evidence of a personal injury where available. Those without such evidenceÌýbutÌýwithÌýaÌýseriousÌýongoing medical conditionÌýwillÌýbe offered a new medicalÌýassessment.ÌýÌý

As part ofÌýan individually-assessedÌýclaim, eligible applicants can also receive compensation forÌýotherÌýlosses that were caused by their personal injury. These losses will be awarded based on a broad assessment of impact, rather than a full assessment of individual heads of loss.ÌýA similarÌýapproach is being used in our Capture Redress Scheme andÌýinitial reports suggest that it is working well.ÌýÌý

All individually-assessed claims will beÌýreviewedÌýby an independentÌýpanel, who will consider whatÌýisÌýan appropriate paymentÌýbased on the Judicial College Guidelines (which are the standard guidance to courts and other redress schemes on personal injury compensation). Claimants will have the right to appeal the assessors’ conclusions in defined circumstances, consistent with other redress schemes. To ensure impartiality, the panel willÌýoperateÌýindependently of government and willÌýcompriseÌýexperts across relevant fields.Ìý

Legal adviceÌý

We will provide funding so that claimants can receive legal advice on whether to accept an event-based offer or go on toÌýsubmitÌýan alternative individually-assessed claim. Applicants willÌýalso haveÌýlegal supportÌýwhenÌýsubmittingÌýan individually-assessed claim. As inÌýDBT’sÌýother Horizon-related schemes, funding will be according to a tariff to be agreed with claimants’ legal representatives.ÌýÌý

Administration of the schemeÌý

As in the other Horizon schemes, we will appointÌýanÌýindependent claims facilitator. AllÌýassessedÌýpersonal injuryÌýoffers under the scheme will beÌýconsideredÌýby an independent panel. The panel will be appointed and supported by the claims facilitators and will include medical and legal experts. Procurement of the claims facilitators is now under way.ÌýÌý

DBT willÌýbe responsible forÌýoverseeing the work of theÌýclaimsÌýfacilitators, including assurance about fraud prevention and value for money in the processing of claims. The Post Office will not be involved in running the scheme, although it willÌýprovide some data relating to postmasters’ÌýclaimsÌýunder theÌýPost Office-runÌýschemes.ÌýÌý

Medical and other specialist advice under the scheme will be provided by experts appointed by theÌýclaimsÌýfacilitators,Ìýon the basis ofÌýstandard instructions to be developed in consultation with claimants’ lawyers and the Horizon Compensation Advisory Board. Claimants and their legal advisors will not need to appoint their own experts. This will ensure neutral advice which can be relied on by all parties.ÌýÌý

Next StepsÌý

WeÌýexpect the scheme to be open for applications in summer 2026. Over the coming months, we will finalise guidance and publish further details onÌýhow toÌýapply.ÌýWe will continue to engage with stakeholders and will consider their feedback as the scheme design is finalised.