Committee publication · Correspondence · 7 July 2026
Letter from the Minister for Small Business and Economic Transformation relating to the Committee's Post Office Horizon Report, 6 July 2026
From: Business and Trade Committee
Inquiry: Post Office Horizon scandal: Justice for sub-postmasters
Summary
Blair McDougall, Minister for Small Business and Economic Transformation, responds to the Business and Trade Committee's Post Office Horizon report. The Government commits to resolving the overwhelming majority of claims by end-2026, defends the £600,000 Fixed Sum Offer structure, and states it is engaging with Fujitsu to secure a substantial financial contribution to scandal costs, contingent on the Inquiry's second report.
Key findings
- Government commits to resolving the overwhelming majority of Horizon redress claims by end-2026, though cannot guarantee all claims resolved by that date
- Defends the £600,000 Fixed Sum Offer for HCRS claimants as enabling quicker resolution; 493 Fixed Sum settlements paid as of 22 May 2026, with 410 paid in the first year
- HCRS claimants receive £200,000 upfront, then £250,000 to reach £450,000 interim payment, with 3-month window to revert to Fixed Sum Offer per Sir Wyn Williams' recommendation
- Government states it will not change Fixed Sum Offer to upfront minimum payment, citing removal of jeopardy and flexibility afforded to claimants
- Officials and ministers actively engaging with Fujitsu to secure a substantial contribution to scandal costs; decision on Fujitsu's contribution linked to Inquiry's second report, expected later in 2026
Government position
The Government accepts the Committee's position that complexity should not delay redress but argues that some claims require careful handling due to claimant vulnerability. It partially accepts the Committee's concerns on the Fixed Sum Offer structure, rejecting calls to change it to an upfront minimum payment while reaffirming the 3-month reversion window. On Fujitsu, the Government accepts the principle of substantial company contribution and is in active dialogue; any decision is deferred pending the Inquiry's second report. Overall position: accepts scrutiny, clarifies existing commitments, defers major decisions pending external inquiry.
Tone
ProceduralTopics
Key actors
Blair McDougall MP, Liam Byrne MP, Business and Trade Committee, Department for Business and Trade, Post Office, Fujitsu, Sir Wyn Williams
Notable line
“Department and the Post Office are absolutely committed to making every effort to ensure that claims are resolved by the end of”
Key Quotes
“The Government shares the Committee's view that complexity should not be used as an excuse for delaying the settlement of any redress claims.”
“We must acknowledge the complex elements of some claims given the vulnerability and age of some claimants which means some claims take longer to resolve than others”
“As such, we expect that the overwhelming majority of claimants will have resolved their claims by the end of this year. Whilst we cannot commit to resolving every single Horizon claim by the end of 2026, we are determined to ensure that the number of outstanding claims at that point is as small as possible.”
“The £600,000 Fixed Sum Offer has enabled quicker resolution of claims, because postmasters are not required to follow the more detailed process of a fully assessed claim.”
“The Government shares your view that it is right that Fujitsu should provide a substantial contribution to the costs of the scandal.”
“Fujitsu's contribution will be decided in the light of the Inquiry's second report, expected later this year.”
Source · parliament.uk record ↗