Committee publication · Report · 13 March 2026 · HC 1589

16th Report - Post Office Horizon scandal: Justice for sub-postmasters

From: Business and Trade Committee

Inquiry: Post Office Horizon scandal: Justice for sub-postmasters

Government response deadline: 13 May 2026

Summary

The Business and Trade Committee examines progress in delivering redress to sub-postmasters harmed by the Post Office Horizon IT scandal. While £1.44 billion has been paid to over 11,300 claimants since January 2025, serious structural failings persist. The Horizon Shortfall Scheme remains slow and delivers undervalued offers; Ministry of Justice conviction-quashing processes contain errors and gaps; and Fujitsu, whose system caused the scandal, has made no redress contribution despite £2 billion costs.

Key findings

  • Over 11,300 claimants have received £1.44 billion in redress as of January 2026, but 2,434 individuals remain awaiting full settlement and 1,528 are awaiting initial offers.
  • The Horizon Shortfall Scheme (HSS) is fundamentally broken for fully-assessed cases: average processing time is 450 days (2.5× target), and initial offers are routinely undervalued, with examples of awards increasing from £20,000 to £854,000 on appeal.
  • Post Office Ltd continues administering HSS despite being responsible for the original miscarriages of justice, undermining victim trust; the Government lacks sufficient resources to transfer complex cases to the Department for Business and Trade.
  • Ministry of Justice processes for quashing Horizon convictions contain systemic errors: 37 individuals cannot be traced; 174 received letters requesting information but may be too traumatised to respond; no independent appeals mechanism exists for those denied conviction quashing.
  • Fujitsu, whose Horizon system created the scandal, has made no interim payment toward redress and continues securing substantial government contracts; evidence suggests pre-Horizon systems including 'Capture' had similar flaws, potentially affecting hundreds more victims.

Recommendations

  • Government should provide funded, up-front legal advice to all Horizon Shortfall Scheme claimants, not just at appeal stage.
  • Government should pay the full £600,000 HCRS (Horizon Convictions Redress Scheme) entitlement upfront to eligible individuals rather than staggered interim payments.
  • Government should publish outcomes of family redress scheme consultations and define 'close family member' broadly to include parents, siblings, aunts/uncles, and nieces/nephews.
  • Government should create an independent appeals mechanism for Ministry of Justice decisions on quashed convictions under the Post Office (Horizon System) Offences Act 2024.
  • Government should seek urgent interim payment from Fujitsu and publish all government contracts with the company.
  • Government should legislate to quash Capture-related convictions and urgently investigate the scale of miscarriages of justice linked to pre-Horizon IT systems.
  • Post Office Ltd should transfer all remaining complex HSS cases to the Department for Business and Trade with proper resourcing.
  • Post Office Ltd should work with trusted partners such as the Restorative Justice Council to conduct trauma-informed outreach to victims not yet engaged with redress.
  • Post Office Ltd should conduct comprehensive review of archival records to identify all Horizon-related conviction cases.
  • Fujitsu should make substantial interim payment immediately toward the redress bill and commit to significant final contribution reflecting compensation plus interest and costs.
  • Fujitsu should extend its moratorium on bidding for new government contracts except where essential for critical public services continuity.

Tone

Critical

Topics

justice-compensationpublic-inquirygovernment-contractsmiscarriage-of-justicepublic-administration

Key actors

Liam Byrne, Post Office Ltd, Fujitsu, Department for Business and Trade, Ministry of Justice, Sir Wyn Williams, Dr Neil Hudgell, Criminal Cases Review Commission

Notable line

… the HSS is "broken" and continues to "churn out ridiculously low offers" for those seeking a full assessment. 53 This forces claimants to appeal through HSSA.

Key Quotes

HSS is "broken" and continues to "churn out ridiculously low offers" for those seeking a full assessment.
Dr Neil Hudgell · describing persistent undervaluation of Horizon Shortfall Scheme offers
… a "significant cohort of people… for whom justice is denied."
Dr Neil Hudgell · referring to traumatised individuals unable to respond to Ministry of Justice requests for information to determine conviction quashing eligibility
… told us that he wanted the Post Office Ltd to relinquish responsibility for all HSS cases other than the £75,000 fixed-sum offers.
Nigel Railton · Post Office Ltd Chairman acknowledging that complex redress cases should be handled by Department for Business and Trade, not by the offending institution
… the department "does not have the staff or expertise to do what is happening in HSS at the moment".
Blair McDougall · DBT Minister explaining why Department cannot immediately take over complex HSS casework from Post Office Ltd
… thousands of sub - postmasters are still waiting for the full and fair redress they are owed. Serious structural failings persist.
Committee · summary of findings one year after previous report
Meanwhile, the technology company Fujitsu, which played a central role in the scandal, has contributed nothing to the bill for redress, and is still growing its public sector revenues.
Committee · on Fujitsu's continued absence from redress funding despite system responsibility
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Source · parliament.uk record ↗