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Post Office Capture Redress Scheme

My hon Friend the Minister for Small Business and Economic Transformation (Blair McDougall MP) has today made the following statement.

Today I have launched the Capture Redress Scheme, and it is now open for applications.

This represents a significant milestone in our commitment to provide redress for postmasters who suffered financial shortfalls due to the Capture software.

Following the independent investigation on Capture, the Government announced that it would be providing redress for affected postmasters. In June, we set out our approach to redress, and I am pleased that today, we deliver on that commitment.

The experiences shared by affected postmasters have been invaluable in shaping the scheme we launch today.

Who is Eligible?

Postmasters who used the Capture software in their branch between 1992 and 2000 and suffered a financial shortfall as a result of the Capture software can apply. Applications are also open to those with legal authority to act on behalf of deceased postmasters or those who lack capacity to apply themselves.

This scheme is specifically for those without a criminal conviction related to Capture. If any convictions related to Capture are identified as unsafe and overturned by the courts, we remain committed to ensuring that appropriate redress is given.

Payments

As a demonstration of our commitment to swift action and to provide immediate support before the cases are assessed by an independent panel, eligible claimants will receive a preliminary payment of £10,000 upon confirmation of eligibility.

Once eligibility is confirmed, an independent panel will assess all the evidence provided, taking a holistic view, and decide upon an appropriate award. The award will be based on a banding model ranging from £10,000 to £300,000, reflecting both financial and personal impacts. The preliminary payment will reflect the lowest band and where, following assessment, a postmaster has been awarded a higher band, this amount will be topped up.

In exceptional cases, where circumstances are particularly severe and supported by detailed evidence, the panel may consider an award exceeding the £300,000 upper band limit.

All awards will be exempt from income tax, capital gains tax and inheritance tax. They will also be exempt from National Insurance contributions and, where applicable, Corporation Tax, and will be disregarded for the purposes of means tested benefits, including Universal Credit and Housing Benefit.

How to Apply

As previously set out, we are launching the scheme starting with a phased rollout for an initial group of 150 claimants. This approach will allow us to test and refine the process. Applications for Phase 1 can be made via an online form. Full guidance and application details are published on GOV.UK.

Any lessons from the first phase will inform any refinements needed ahead of wider rollout in Phase 2, which will launch swiftly after completion of Phase 1. Ipsos, an independent research agency, will be delivering an evaluation to inform this. Should we enhance any payment aspects of the scheme following Phase 1, these improvements will be applied retrospectively to early participants.

Appeals and Legal Support

Claimants who, following assessment of their applications, are found ineligible can request an independent review of this decision.

Additionally, claimants have the right to appeal the award offered in certain circumstances where there is new evidence, procedural error, or material error. If appeal grounds are met, the award may be amended following a review by the Scheme’s Independent Panel Chair.

We encourage all claimants to seek legal representation. The Government has published a legal cost framework that law firms can sign up to. The framework will ensure that postmasters can seek legal representation from the firms listed in the framework without having to pay legal fees. The Government will pay these legal fees directly as part of the scheme.

We strongly advise that postmasters check that a legal representative is content to operate within the terms of the cost framework to avoid being charged.

Today, we deliver on our commitment to provide redress for those negatively affected by the Capture software.