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Horizon Shortfall Scheme 'no longer fit for purpose'

Horizon Shortfall Scheme problems

Horizon Shortfall Scheme ‘Not Fit for Purpose’

Photo by Alice Horsley/Getty Images

There are “serious structural failings persist” in the redress system of Post Office Horizon scandal as many victims still face unacceptable delays, inadequate offers, and administrative processes that “re‑traumatise” those who have already been seriously wronged, states a a parliamentary committee report released today (March 13).

The committee report also slammed Fujitsu for contributing nothing to the bill for redress and still expanding its public sector revenues.


A few days after UK CEO Paul Patterson gave evidence in Parliament, Fujitsu announced that he would move this month to a non-executive role “managing the company's response" to the public inquiry into the Horizon scandal.

There is a serious risk of an unknown number of unsafe convictions - potentially including wrongful imprisonment – that are yet to be uncovered or have any access to justice. The Committee found evidence that the MoJ is wrongly judging eligibility of sub postmasters who should have had their convictions quashed, and there is no route for appeal in these cases.

And there is now emerging evidence that pre-Horizon IT systems, especially Capture, had similar flaws to the Horizon system that may have contributed to unsafe convictions. Incomplete records mean that the current confirmed number of Capture cases may represent just “the tip of another iceberg”, with the Committee calling for urgent legislation to quash Capture-related convictions.

The Horizon Shortfall Scheme (HSS), still managed by Post Office, routinely sees its offers overturned and significantly increased after a DBT-administered appeal.

The stark disparities between initial offers and eventual awards reinforces that the HSS is no longer fit for purpose. Fully assessed claims continue to take far beyond target timelines with thousands of late claims still awaiting final offer.

The Horizon Convictions Redress Scheme (HCRS) is performing better, but claimants are still being forced to jump through administrative hoops to secure what is now effectively a guaranteed minimum £600k redress payment. That should simply be paid in full to all eligible claimants now.

Fujitsu has acknowledged its moral obligation to contribute to the cost of redress, yet it has made no interim payment and has agreed no figure. The total cost of redress payments now stands around £2 billion.

But despite its “self-imposed moratorium” on bidding for new public contracts, Fujitsu continues to benefit from substantial Government contracts. The failure to even offer an interim amount is “unacceptable”.

Rt Hon Liam Byrne MP, Chair of the Business and Trade Committee, said, “For hundreds of sub-postmasters, justice has come far too slowly. Many have waited years for the truth to be recognised and for the compensation they are owed. Yet today we find serious structural failings still blocking the road to justice.

“Thousands of victims are still waiting for fair redress, while the processes designed to help them are too often slow, bureaucratic and re-traumatising. That is simply unacceptable after one of the greatest miscarriages of justice in British history.

“Worse, Fujitsu has yet to contribute a penny to the nearly £2 billion redress bill, even as it continues to benefit from public contracts. That cannot continue. It is simply wrong that taxpayers are covering the costs for Fujitsu’s sins while Fujitsu is still profiting from taxpayers funded contracts.

“We were also concerned to hear new evidence that suggests unsafe convictions linked to earlier systems such as Capture may be only the tip of another iceberg. Parliament must act quickly to quash these convictions and ensure that every victim finally gets the justice they deserve.

“The victims of this scandal have shown extraordinary courage. The country owes them more than apologies; it owes them justice, accountability, and full and fair redress without further delay.”