Post Office compensation scheme now OPEN after IT scandal - are you eligible for a £10,000 payment?

Patrick O'Donnell

By Patrick O'Donnell


Published: 29/10/2025

- 15:55

A Post Office compensation scheme is now live for those impacted by IT errors predating the Horizon scandal

The compensation scheme for former subpostmasters affected by the Post Office's flawed Capture IT system is now open in a win for those seeking financial redress.

Eligible claimants will receive an initial £10,000 payment, with comprehensive assessments potentially yielding awards of £300,000 or higher in specific circumstances.


This initiative addresses injustices suffered by postal workers who experienced accounting discrepancies caused by the defective software. This development follows years of campaigning by affected individuals who faced financial hardship due to system-generated shortfalls.

The compensation programme represents a significant step towards acknowledging the harm inflicted on subpostmasters by the problematic technology that preceded the notorious Horizon system.

Woman looking at lettter and Post Office branch

The Post Office compensation scheme is now open

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GETTY / PA

The Capture accounting software operated across Post Office branches from 1992 until 2000, creating systematic problems for those managing the outlets.

Forensic accounting firm Kroll Associates examined the system following a Government-commissioned inquiry initiated last year.

Their investigation determined that the technology likely generated erroneous financial discrepancies in branch accounts.

These false shortfalls forced numerous postmasters to cover the gaps using personal funds to balance their books.

Paula Vennells and Post Office sign

The former chief executive of the Post Office, Paula Vennells was stripped of her CBE following the Horizon Post Office scandal

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PA

The findings mirror difficulties experienced by victims of the subsequent Horizon system, which resulted in approximately 1,000 wrongful prosecutions.

It should be noted the programme excludes individuals with criminal convictions linked to Capture-related matters.

These cases require separate consideration through the Criminal Cases Review Commission or its Scottish counterpart.

In light of this issue, the Government has pledged to provide suitable compensation for those whose convictions are subsequently quashed by the courts.

This approach ensures criminal matters receive proper judicial scrutiny before financial redress is considered

.An initial cohort of 150 applicants will participate in the scheme's pilot phase. This testing period will help refine the compensation process before broader implementation begins.

The phased approach aims to ensure efficient processing whilst maintaining fairness for all eligible claimants seeking recompense for their losses.

Post Office minister Blair McDougall acknowledged the prolonged struggle endured by affected individuals and their families.

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"After over two decades of fighting for justice, postmasters and their families will finally receive recognition and recompense for the lives and livelihoods that Capture destroyed," he stated.

Mr McDougall expressed gratitude to victims who contributed to developing the compensation framework.

"We can't make up for everything they have lost, but today we begin restoring some of the dignity so cruelly taken away by this scandal," he added.

The programme incorporates insights from Horizon scandal redress efforts, which have distributed over £1.2billion to more than 9,000 recipients.

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