The UK Post Office is closing its largest compensation programme for victims of the Horizon IT scandal, raising concerns that thousands of eligible former and current post office operators may miss out on financial redress. The Horizon Shortfall Scheme (HSS), which compensates sub-postmasters for losses caused by faults in the Horizon accounting system, closes to new applicants at 11:59pm on 31 January 2026. Despite repeated deadline extensions, hundreds of new claims continue to arrive each month, prompting warnings that some affected operators may still be unaware of their eligibility, reports The WP Times, via Theguardian.
According to official Post Office data published in December 2025, more than 9,500 claims had been submitted to the scheme. A significant number remain unresolved. The closure marks a critical point in the government-backed effort to address one of the most serious miscarriages of justice in modern British legal and corporate history.
What the Horizon Shortfall Scheme is and how it works
The Horizon Shortfall Scheme was introduced in 2020 to compensate post office operators who suffered financial losses due to errors in the Horizon IT system, which was developed by Fujitsu and rolled out nationally from 1999. For years, the system generated unexplained shortfalls in branch accounts. Sub-postmasters were held personally responsible for these discrepancies, often forced to repay money they did not owe.
In many cases, operators were suspended, dismissed, bankrupted, or prosecuted based on Horizon data later shown to be unreliable. While overturned criminal convictions are handled under separate compensation arrangements, the HSS covers those who were not criminally convicted but still suffered financial harm.
Applicants to the scheme can choose between:
- a fixed lump-sum payment of £75,000, or
- an individual assessment, which may result in a higher payout but requires detailed evidence and takes longer to process.
The scheme is funded by the UK government and administered by Post Office Ltd.
Key facts about the Horizon Shortfall Scheme
| Feature | Details | UK-specific notes |
|---|---|---|
| Scheme launch | 2020 | Introduced after public pressure and court rulings |
| Closing date | 31 January 2026 | No new applications accepted after this date |
| Fixed payment option | £75,000 | Optional, final if accepted |
| Total claims received | 9,500+ | Data to December 2025 |
| Managing body | Post Office Ltd | Government-funded redress |
| Appeals route | HSS Appeals process | Available after offers are issued |
How the scheme works in practice for affected postmasters
To receive compensation under the Horizon Shortfall Scheme, eligible applicants must submit a completed claim form before the deadline. Claims received after the cut-off time are not accepted, regardless of circumstances.
Once an application is submitted:
- The Post Office reviews eligibility based on branch records and Horizon data.
- Claimants are offered either the fixed £75,000 payment or an individually calculated settlement.
- If the individual assessment route is chosen, additional documentation may be requested to demonstrate losses, including bank records, branch accounts, and correspondence.
- After receiving an offer, claimants may accept it or challenge it through the formal appeals mechanism introduced in 2025.
While the fixed-sum option was designed to speed up redress, some claimants have expressed concern that it may not fully reflect long-term financial damage, including lost income and legal costs.
Practical points claimants should note
- key requirement: losses must be linked to Horizon system errors
- critical deadline: 31 January 2026 at 11:59pm
- useful step: retain copies of all submissions and correspondence
- common rule: accepting a settlement usually ends further claims
- practical advice: seek independent legal guidance before accepting offers
Real-life situations across the UK
Across England, Scotland, Wales, and Northern Ireland, former sub-postmasters have reported similar experiences: unexplained accounting shortfalls, pressure to repay missing sums, and limited ability to challenge Horizon data. Many covered losses using personal savings or loans to keep their branches open.
Some operators left the Post Office network entirely, while others continued working for years under financial strain. Although awareness of the compensation schemes has increased following public inquiries and media coverage, campaigners and advisers say late discovery of eligibility remains common.
“Many former postmasters only realised recently that they could apply, even if they were never prosecuted,” explains a legal adviser familiar with Horizon claims.
“Understanding which scheme applies to your situation is essential,” notes a compensation specialist working with affected families.
The continued arrival of new claims in late 2025 highlights the scale of the issue as the scheme closes.
Compensation options compared
| Option | Benefits | Limitations |
|---|---|---|
| £75,000 fixed payment | Faster resolution, less paperwork | May not reflect full losses |
| Individual assessment | Potentially higher compensation | Longer process, complex evidence |
| Appeal after offer | Independent review available | Additional delay, not guaranteed |
Common mistakes applicants should avoid
One frequent mistake is missing the application deadline due to incomplete paperwork or late submission. The Post Office has made clear that the closing date is final and that awareness alone is not grounds for exception.
Another risk is accepting an offer without understanding its implications. Fixed payments are generally final, meaning claimants cannot later seek additional compensation for related losses. In some cases, applicants fail to include all relevant financial evidence, leading to lower assessed payouts.
Delays also occur when claimants rely solely on memory rather than documented records. Even partial bank statements or correspondence can significantly affect outcomes.
Frequently asked questions
Q: What is the Horizon Shortfall Scheme?
A: It is a UK compensation scheme for post office operators who lost money due to errors in the Horizon IT system but were not criminally convicted.
Q: When does the Horizon Shortfall Scheme close?
A: The scheme closes to new applications at 11:59pm on 31 January 2026.
Q: Can I apply after the deadline?
A: No. Applications submitted after the deadline are not accepted.
Q: Do I have to take the £75,000 payment?
A: No. Claimants can choose an individual assessment instead, which may result in a higher payout.
Q: Is there an appeal process?
A: Yes. Claimants who disagree with an offer can use the Horizon Shortfall Scheme Appeals process.
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