The government has today announced a new compensation scheme for families of those affected by the Post Office scandal. It looks to have support from at least one victims’ group and the Horizon Compensation Advisory Board, an independent body which has done quite a bit to shape government thinking about this scandal.

The scheme is called the Horizon Family Members Redress Scheme, and it is, according to the government “expected to open in summer 2026”.

The Business Department says the scheme is “designed to be as accessible and straightforward as possible – minimising bureaucratic barriers so that families receive redress without delay.”

Lost Chances, a group formed by children of Subpostmasters affected by the scandal, have, according to the government “been involved in the design of the scheme alongside other postmasters and interested groups”. Some members of Lost Chances are meeting the Post Office minister, Blair McDougall today. McDougall says:

“Today’s scheme recognises that harm and will make sure those families receive the support they deserve, as quickly and simply as possible. We have listened carefully to those affected and designed this scheme to reach as many people as we can without putting unnecessary barriers in their way.”

Katie Burrows, vice Chair of Lost Chances said: “We welcome the Government’s continued engagement and the collaborative approach that has been taken in developing these proposals…. For many children, the impact of the Horizon scandal went far beyond financial loss – it affected their upbringing, family stability, mental health, and life opportunities. It is right that this is now being formally recognised. At the same time, the success of this scheme will depend on whether that recognition feels meaningful to those affected. Getting this right is essential not only for fairness, but for building trust in the process among families who have often felt overlooked for many years.”

Sarah Freebury is a member of Lost Chances. Her mother was prosecuted by the Department for Work and Pensions over discrepancies generated by Horizon and was sent to prison. Sarah said: “While no scheme can ever fully undo the harm, we hope it delivers redress and support in a way that is fair, swift, and respectful. Independent parties must be appointed to maintain a neutral standpoint throughout the process. I’m saddened to see that DWP prosecution aren’t eligible, however we continue to press the agencies involved to review the remaining 100 or so DWP cases so that ALL affected families can access this pathway and the recognition they truly deserve.”

Two routes

The scheme apparently offers “two routes to redress”. Family members who can provide “contemporaneous evidence of personal injury”, or who have an “ongoing medical condition arising from Horizon”, can make an assessed personal injury claim.  

The government says “for those who cannot provide this level of evidence, a new events-based route has been created. Where a postmaster relative experienced one of the most serious consequences of the scandal – such as criminal prosecution or bankruptcy – the Government will offer fixed rate recognition payments without requiring further evidence of personal harm. This approach ensures that family members are not left without any recourse simply because records decades ago are no longer available.”

There are more details about the scheme in two letters posted to the government website, one of which sets out some potential settlement sums. Raj Barang, whose 39 year old father died from a suspected stress-related condition six weeks after being suspended by the Post Office has already had a look. He said:

“They are suggesting a compensation payment of £15,120 for wrongful death. That should just be an interim. That shouldn’t be a full settlement. They’ve put a very small figure on the death of my father.”

Raj’s mum Jasvinder took over Lower Stondon Post Office in Bedfordshire after her husband died. From the age of 16 Raj was helping support the family. Eight years later Jasvinder was prosecuted by the Post Office. Her conviction was quashed in 2020. Raj is understandably bitter about the way his family was treated. “It’s good to see that it’s going in the right direction, but this should have been done a long time ago. I feel like – how long are they going to make us wait now? Why are we waiting till summer for the application process to open?”

Both routes to redress appear to set a high bar for potential claimants. As ever, the proof of the pudding will be in the eating. The Post Office and government’s track record in compensation schemes has so far not been great (see last week’s Business select committee report).

It is significant that Lord Arbuthnot, who has campaigned on behalf of Subpostmasters since 2010, is behind the new scheme. He said, in a quote embedded in the government press release:

“The Horizon Compensation Advisory Board has helped to shape the scheme’s design and will continue to monitor closely the development of the scheme and to provide its experience and expertise where helpful. Whilst the wrongs of the Horizon scandal cannot be undone, this scheme will help to give family members the recognition that they deserve.”

Varchas Patel, whose father Vipin ran Horspath Post Office in Oxfordshire before being sacked and prosecuted in 2011, said:

“The announcement of compensation for immediate family members is welcome, and I want to express my appreciation to Lost Chances for their consistent input in getting us to this point. They truly deserve recognition for their work. However, I am concerned about the issue of legal advice, as every other redress scheme has included a cap. The cost of my intensive therapy – which has kept me alive and is essential for my ongoing mental health recovery – will soon approach six figures. I have financially supported my parents since 2015 to prevent them from going bankrupt, and I have lived in my overdraft for roughly the same period… Given how my father and hundreds of other sub‑postmasters have been treated, I sadly have no confidence that proper offers will be made, even when evidence is overwhelming – a pattern we have already seen across different redress schemes. In many ways, I feel I would be better off taking my chances in court.”

Restorative Justice League is go

The new Horizon redress scheme has been announced alongside the publication of a report by the Restorative Justice Council, building on its work towards the end of last year. This report is “the first full design for an independent restorative justice programme responding to the Post Office Horizon IT scandal, shaped directly by postmasters, their children, and families.”

Funded by the government, Post Office and Fujitsu, “Rebuilding Trust: Designing a Restorative Justice Programme with Those Harmed… sets out how extensive listening to those affected has informed a national programme that will begin operating from April 2026″.

Jim Simon, the Chief Executive of the Restorative Justice Council, said: “This report marks a shift from listening to action… Postmasters, their children and families have been clear that the harm they experienced… shaped family life, childhoods, reputations and trust in ways that continue today. Restorative justice cannot undo what happened, and it cannot replace legal or redress processes. What it can do is create safe, voluntary spaces for truth telling, responsibility and dignity, on people’s own terms, without causing further harm.”

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