• Mié. Oct 29th, 2025

fifebusinessjournal.co.uk

fifebusinessjournal.co.uk

First compensation scheme launched for postmasters affected by Capture IT scandal in the UK

PorStaff

Oct 29, 2025

The inaugural redress scheme for victims of the Post Office Capture IT scandal has recently been introduced. This signifies the government’s formal recognition of the harm suffered by former sub postmasters who utilized defective accounting software in the 1990s.

Capture was employed in branches from 1992 to 2000, predating the notorious Horizon scandal, which resulted in the wrongful conviction of hundreds. The Capture Redress Scheme will offer compensation of up to £300,000, and potentially more in extraordinary cases, to former postmasters who experienced financial setbacks. Announced by the Department for Business and Trade in June, the scheme aims to provide long-awaited justice to those impacted.

Following an independent investigation in September 2024 by forensic accountants Kroll Associates, which uncovered a «reasonable likelihood» that the Capture system led to accounting discrepancies, similar to the Horizon scandal, postmasters had to cover shortfalls from their own pockets, with some losing their jobs.

Under the Capture scheme, eligible claimants will receive an initial interim payment of £10,000. Subsequently, an independent panel will evaluate final awards through a banding model ranging from £10,000 to £300,000, with higher payments granted in exceptional circumstances. The redress scheme will initially be trialed with 150 claimants before a full rollout to ensure the process is equitable and accessible, as per the government’s statements. All compensations will be tax-exempt and disregarded for means-tested benefits.

Post Office Minister Blair McDougall expressed that the launch signifies a significant milestone for victims who have waited decades for redress. McDougall stated, «After over two decades of advocating for justice, postmasters and their families will finally receive acknowledgment and compensation for the lives and livelihoods that Capture destroyed.» He added, «We can’t fully compensate for all they have lost, but today marks the beginning of restoring some of the dignity that was unjustly taken away by this scandal.»

The Capture Redress Scheme is not open to postmasters with a criminal conviction related to Capture, as those cases are currently under review by the Criminal Cases Review Commission (CCRC). If convictions are subsequently deemed unsafe, appropriate redress will be provided. Applications for the Capture Redress Scheme can be submitted via GOV.UK.

Read more from Sky News: Compensation ‘worse than original injustice’, victims’ commissioner says. Capture IT system conviction referred to Court of Appeal for the first time.

SOURCE

Por Staff

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