New compensation scheme announced for Post Office Capture victims
Horizon scandal
Politics
Postmasters who suffered financial shortfalls in the 1990s due to errors of the faulty Capture IT system that preceded the Horizon scandal will be entitled to payouts from a new redress scheme.
Capture, which was a precursor to Horizon developed in-house by the Post Office, led to a number of sub-postmasters being accused of 'accounting malpractice', with some having their contracts terminated.
Some resigned, while others were prosecuted or had to pay money back.
In a move to "right the wrongs of the past", the Department for Business and Trade has announced a new compensation scheme for those affected by the faults of Capture between 1992 and 2000.
It follows the government's acceptance of findings from an independent investigation by Kroll Associates, which concluded there was a reasonable likelihood that Capture created financial shortfalls for postmasters.
Kroll found that 13.5% of all branches may have used Capture, and that sub-postmasters felt pressured by network and area managers to use the system. Its report also found that legal teams had not been investigating potential "bugs or errors" in the system.
At least 40 former sub-postmasters claimed they were wrongly accused of theft due to errors in the Capture system, ITV News reported last year.
"Today's announcement represents another important step in righting the wrongs of the past and rebuilding trust in the Post Office," said Post Office Minister Gareth Thomas.
The scheme is expected to open for applications in Autumn 2025, with an initial phased rollout for 150 claimants to ensure the process is fair, proportionate and accessible before wider implementation.
It comes as the government confirmed that £1 billion has been paid out in compensation to over 7,300 postmasters affected by the Horizon IT scandal, and the opening of the Horizon Shortfalls Scheme Appeal process in May.
The Capture Redress Scheme has been designed to address cases dating back over two decades, where documentation that can be used as evidence may be limited.
It will include a " straightforward two-stage process", according to the government, comprising of an initial eligibility review followed by an independent panel assessment.
A "holistic" approach to assessments will be taken, considering both financial losses and the wider personal impact on postmasters.
The government says the scheme will also include prompt preliminary payments for eligible claimants, ensuring early acknowledgement of loss, and a guided scoring and banding model for "consistency in awards, while maintaining flexibility".
Hudgell Solicitors says it is acting on behalf of more than 100 former sub-postmasters prosecuted, sacked or made to pay back alleged branch shortfalls when using the Capture accounting system.
Of those cases, more than 30 are being led by relatives of former sub-postmasters who have since died, the firm said in February.
They include Mark Lloyd-Holt and his mother, Agnes, who are pursuing justice on behalf of Agnes' late husband Peter, who died in 2021, aged 75, without ever having the opportunity to clear his name.
He was sacked from his role as sub-postmaster of his Bolton Post Office in 1994 after accounts at his branch showed unexplained shortfalls, with his family saying the impact of all that happened "destroyed" him and left him a "shell of himself".
Following a meeting with the government in February to discuss the second Post Office IT scandal, Neil Hudgell, of Hudgell Solicitors, said: "We will get redress and justice for those whose lives were affected by Capture.
"There are potentially hundreds affected, and sadly a large number are likely to be people who are no longer with us, and died without ever being able to clear their name.
"Our message is that people shouldn't be put off by having a lack of documentation.
"If they know or suspect that they, or family members were affected by accounting issues between 1992 and 1999 which may have been due to Capture, they should come forward.
"That certainly includes family members acting on behalf of loved ones who have since passed away."
Who can apply to the Capture compensation scheme? Postmasters are eligible to apply if they:
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