Ministers launch new scheme to compensate sub-postmasters hit by tech faults before the Horizon system
The UK Government has announced a dedicated compensation scheme for sub-postmasters impacted by the now-discredited Capture accounting software, promising “fair and swift redress” for those who suffered unexplained shortfalls between 1992 and 2000.
The Capture Redress Scheme, set to open for applications in autumn 2025, will provide financial and emotional compensation for hundreds of sub-postmasters whose branches used the flawed Capture system before the more widely known Horizon system was rolled out. Crucially, relatives of deceased sub-postmasters will also be eligible to apply.
The scheme’s framework was unveiled by Post Office Minister Gareth Thomas, who committed to avoiding past mistakes and delays that plagued earlier compensation initiatives linked to the Horizon scandal.
Legal support for the victims is being led by Dr Neil Hudgell, executive chairman of Hudgell Solicitors, who represents the vast majority of the initial 150 claimants enrolled in the scheme’s pilot phase. These early cases will be used to test and refine the redress process before full rollout.
“This announcement shows that lessons are starting to be learned,” said Hudgell, whose firm has long represented victims of the Post Office’s accounting failures, including efforts to overturn wrongful convictions linked to Capture through the Criminal Cases Review Commission (CCRC).
Key features of the scheme include:
- A two-stage process: eligibility check followed by a detailed review by an independent expert panel, operating separately from the government.
- Prompt preliminary payments to ensure early recognition of loss and suffering.
- A holistic assessment of claims, considering not only financial damages but also broader personal and emotional harm.
- A balance of probabilities approach to evidence, reducing the burden on claimants.
- Appeal rights for claimants dissatisfied with the compensation offer.
The panel will avoid legalistic hurdles that bogged down past efforts, with Hudgell noting that some earlier compensation schemes “fell well short of their purpose.”
A key innovation of the Capture scheme is its willingness to award redress even when supporting evidence is limited or missing — a nod to the reality that many affected postmasters lacked the means or time to retain exhaustive records from the 1990s.
Hudgell added: “The devil remains in the detail, but early signs suggest the government is serious about making this a fair and victim-centred process. We need a speedy and just outcome for everyone affected.”
The scheme will also cover legal costs, with specific details on funding expected to be disclosed shortly. This move ensures postmasters will not face out-of-pocket expenses in seeking the compensation they are owed.
The Capture software, used prior to Horizon, was found to contain critical errors that led to false accounting figures and accusations of shortfalls in local branches, placing undue financial and emotional strain on operators who were wrongly held responsible.
The announcement follows growing political and public pressure on the government to address injustices caused by Post Office software systems, as several victims continue to seek exoneration for wrongful convictions and financial ruin.
Hudgell Solicitors confirmed that many of the initial 150 claimants are already being supported by their legal team, and that ongoing oversight will ensure that their interests remain central as the scheme progresses.
