Ministers say scheme recognises mental health, financial and reputational harm suffered by families of postmasters
Close family members affected by the Post Office Horizon scandal are to be offered compensation under a new government redress scheme expected to open this summer.
The Department for Business and Trade said the scheme would extend financial recognition beyond postmasters themselves, acknowledging that the consequences of the scandal were “not confined to those directly operating branches” but also affected relatives’ mental health, finances and family life.
Business minister Blair McDougall confirmed the initiative forms part of the government’s wider response to the first volume of the Horizon IT Inquiry’s final report and builds on the nearly £1.5bn already paid to postmasters across existing compensation schemes.
In correspondence with campaigners, McDougall said the new programme was intended to ensure that family members who suffered harm as a result of prosecutions, financial collapse and reputational damage linked to the scandal would now have a route to recognition and redress. He also emphasised that ministers wanted the process to be accessible and straightforward so that relatives were not excluded because of missing records or evidential gaps.
The scheme will operate through two routes. Family members able to demonstrate personal injury or an ongoing medical condition connected to the scandal will be eligible to submit fully assessed claims. Others will be able to apply through an alternative events-based route providing fixed-rate payments where a postmaster relative experienced serious consequences such as prosecution or bankruptcy.
Officials said the dual-track structure was designed to reflect the reality that many families lack documentary evidence from events that occurred years earlier.
The government confirmed the model had been developed with input from affected families and campaign group Lost Chances, whose representatives have been in direct discussion with ministers about the design of the scheme and its operation ahead of launch.
Alongside the compensation programme, ministers have endorsed a restorative justice initiative led by postmasters and supported by the Restorative Justice Council. The scheme will facilitate meetings between affected families and representatives of the Post Office, Fujitsu and the Department for Business and Trade to enable face-to-face apologies in addition to those already issued publicly.
The restorative justice work will be jointly funded by the department, the Post Office and Fujitsu over five years following a pilot phase completed in 2025.
Ministers said the measures were intended to recognise the wider impact of the scandal and ensure that relatives who experienced long-term consequences are now included within the government’s compensation framework.