Government compensation schemes: update
Public Accounts Committee
Open
Inquiry
Opened: 10 Jul 2025
Parliament page
When public bodies’ failures harm UK citizens, they should expect to be fairly and swiftly compensated. Failings in such schemes were identified in the PAC’s previous reports on the Windrush Compensation Scheme , Equitable Life and the British Steel Pension Scheme . In January 2024, the National Audit Office (NAO) …
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1
Recommendation
28
Conclusions
1
Report
2
Oral sessions
8
Letters
2
Events
Activity timeline 11 events
10 Sep
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9 Sep
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Report published
6 Jul
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29 Jun
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29 Jun
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29 Jun
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22 Jun
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4 Jun
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Oral evidence
1 Jun
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Oral evidence
Oral evidence sessions 2 sessions
4 Jun 2026
View on parliament.uk
Carl Cresswell · Department for Business and Trade
Carl Creswell · Department for Business, Energy and Industrial Strategy
Cat Little CB · Cabinet Office
David Foley · Infected Blood Compensation Authority
Gareth Davies CB · Department for Business and Trade
Jeremy Pocklington CB · Ministry of Defence
1 Jun 2026
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Kate Burt · The Haemophilia Society
Peter Gibson · Fighting with Pride
Professor Jonathan Montgomery · University College London
Professor Sir John Montgomery · University College London (UCL)
Rev Clive Foster MBE · The Windrush Commissioner
Rev Clive Foster MBE · The Windrush Commissioner
Shaila Pal · Kings College London, Legal Clinic
Shalia Pal · Kings College London, Legal Clinic
Sir Alan Bates · Justice for Subpostmasters Alliance
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| 12th Report - Government compensation schemes | HC 88 | 9 Sep 2026 | 29 | No response document linked |
Recommendations & Conclusions
29 results
1
Conclusion
12th Report - Government compensat…
On the basis of a report by the Comptroller and Auditor General, we took oral...
On the basis of a report by the Comptroller and Auditor General, we took oral evidence from several public bodies administering compensation schemes – the Cabinet Office, the Home Office, the Ministry of Defence (MoD), the Department of Business & …
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HM Treasury
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2
Conclusion
12th Report - Government compensat…
Government compensation schemes are expected to provide people who have experienced harm, either directly or...
Government compensation schemes are expected to provide people who have experienced harm, either directly or indirectly, from the actions or inaction of public bodies with the compensation or financial redress they are rightly entitled to. The NAO’s report examined the …
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HM Treasury
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3
Conclusion
12th Report - Government compensat…
We also received written submissions from a range of different sources including voluntary sector organisations,...
We also received written submissions from a range of different sources including voluntary sector organisations, academic and researchers as well as wider government stakeholders. A list of the written evidence is available on the inquiry page of the Committee’s website.3 …
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4
Conclusion
12th Report - Government compensat…
By February 2026, the government had paid around £3.5 billion in total across the seven...
By February 2026, the government had paid around £3.5 billion in total across the seven schemes examined by the NAO, with up to another £11.4 billion potentially yet to be paid. The Infected Blood Compensation Scheme alone is estimated to …
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HM Treasury
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5
Conclusion
12th Report - Government compensat…
Some compensation schemes, such as the Windrush and some of the Horizon IT schemes, experienced...
Some compensation schemes, such as the Windrush and some of the Horizon IT schemes, experienced significant issues in their early stages.5 For example, schemes’ initial assumptions about likely claim volumes and processing capacity were often wrong, contributing to backlogs and …
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HM Treasury
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6
Conclusion
12th Report - Government compensat…
There remains substantial variation across schemes in how long claims take to conclude, capacity for...
There remains substantial variation across schemes in how long claims take to conclude, capacity for greater transparency and clarity during the claim process and scope for more structured and consistent cross- government learning.8 The independence of schemes, and their design …
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HM Treasury
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7
Conclusion
12th Report - Government compensat…
Most respondents to our survey reported feeling the scheme they had experience of felt unfair,...
Most respondents to our survey reported feeling the scheme they had experience of felt unfair, and 76% of people said the claim process was distressing or retraumatising. Over the first year of the Windrush compensation scheme, the Home Office received …
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HM Treasury
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8
Conclusion
12th Report - Government compensat…
We asked the departments whether they agreed that having the body that caused the original...
We asked the departments whether they agreed that having the body that caused the original harm administering the subsequent compensation scheme was a poor way to establish trust. The Home Office said that it understood why there is deep scepticism …
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9
Recommendation
12th Report - Government compensat…
The Post Office Horizon IT Inquiry led by Sir Wyn Williams recommended that the government...
The Post Office Horizon IT Inquiry led by Sir Wyn Williams recommended that the government should establish a standing public body to “devise, administer and deliver schemes for providing financial redress” to persons harmed by the action or inaction of …
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HM Treasury
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10
Conclusion
12th Report - Government compensat…
We asked the Cabinet Office why there is still no permanent central body to oversee...
We asked the Cabinet Office why there is still no permanent central body to oversee and advise how compensation schemes are administered. The Cabinet Office acknowledged the merits of a single body independently administering schemes in a consistent way but …
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HM Treasury
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11
Conclusion
12th Report - Government compensat…
Officials from compensation schemes across government attend eight- weekly meetings of a cross-Whitehall network to...
Officials from compensation schemes across government attend eight- weekly meetings of a cross-Whitehall network to share updates on schemes, learning and best practice. The NAO’s report found that these meetings are helpful opportunities for Departments to raise questions on operational …
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HM Treasury
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12
Conclusion
12th Report - Government compensat…
We asked the Departments how they had learned lessons from what went wrong with earlier...
We asked the Departments how they had learned lessons from what went wrong with earlier compensation schemes. DBT told us that it learnt lessons as it continued to administer the Horizon IT compensation schemes and applied the learning from earlier …
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HM Treasury
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13
Conclusion
12th Report - Government compensat…
Sir Alan Bates told us of the importance of establishing an organisation that learns lessons...
Sir Alan Bates told us of the importance of establishing an organisation that learns lessons from those involved with compensation schemes, including for example victims and lawyers.29 Shaila Pal, Director of the King’s Legal Clinic at King’s College London and …
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HM Treasury
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14
Conclusion
12th Report - Government compensat…
We asked the Cabinet Office whether there should be a permanent body within government that...
We asked the Cabinet Office whether there should be a permanent body within government that is learning lessons from what went wrong with earlier schemes. Cabinet Office told us that it is the natural place for such learning, considering it …
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HM Treasury
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15
Conclusion
12th Report - Government compensat…
The departments have not always launched schemes before gaining a clear understanding of issues facing...
The departments have not always launched schemes before gaining a clear understanding of issues facing affected communities. On the Horizon Shortfall Scheme, Post Office Limited initially expected only a few hundred applicants but by the initial claim deadline of November …
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HM Treasury
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16
Conclusion
12th Report - Government compensat…
Kate Burt, Chief Executive of the Haemophilia Society, told us that Government could have avoided...
Kate Burt, Chief Executive of the Haemophilia Society, told us that Government could have avoided problems experienced by the Infected Blood Compensation Scheme if it had early engagement with affected communities – before the scheme launched.37 She said that the …
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HM Treasury
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17
Conclusion
12th Report - Government compensat…
We asked the departments whether they agree that there needs to be more co-design with...
We asked the departments whether they agree that there needs to be more co-design with victims on future schemes as early as possible. The Cabinet Office told us that co-design is essential for compensation schemes, because it believes it is …
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HM Treasury
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18
Conclusion
12th Report - Government compensat…
The NAO’s report found that three schemes extended the time periods over which they are...
The NAO’s report found that three schemes extended the time periods over which they are open to new claims after the schemes were launched, recognising that many eligible claimants had not applied within original timescales.42 It also found substantial variation …
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HM Treasury
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19
Conclusion
12th Report - Government compensat…
Peter Gibson, Chief Executive Officer of Fighting With Pride, expressed serious concern that government has...
Peter Gibson, Chief Executive Officer of Fighting With Pride, expressed serious concern that government has not sufficiently resourced publicity and outreach on the LGBT Financial Recognition Scheme, or proactively identified and engaged eligible claimants. He told us that government should …
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HM Treasury
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20
Conclusion
12th Report - Government compensat…
We asked MoD why it has not written to all potentially eligible veterans through the...
We asked MoD why it has not written to all potentially eligible veterans through the LGBT Financial Recognition Scheme. MoD told us it was doing all it could to promote the scheme, but it could not contact all eligible veterans …
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HM Treasury
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21
Conclusion
12th Report - Government compensat…
Representatives of victims told us that prolonged delays in settling claims were unacceptable and had...
Representatives of victims told us that prolonged delays in settling claims were unacceptable and had serious consequences for victims. Reverend Clive Foster informed us that Windrush victims were waiting 14 months to get a result on a claim in 2020, …
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HM Treasury
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22
Conclusion
12th Report - Government compensat…
We asked the Departments why there is such substantial variation in the time taken to...
We asked the Departments why there is such substantial variation in the time taken to settle claims. DBT responded that it is waiting for people to submit full claims on the Horizon Compensation Schemes and it is keen to pay …
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HM Treasury
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23
Conclusion
12th Report - Government compensat…
Compensation schemes often require claimants to provide extensive evidence to demonstrate their eligibility for the...
Compensation schemes often require claimants to provide extensive evidence to demonstrate their eligibility for the scheme.56 However, the evidence we heard suggested that the evidential requirements on too many schemes have become overly burdensome and onerous for the claimants, and …
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HM Treasury
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24
Conclusion
12th Report - Government compensat…
Sir Alan Bates told us that the Horizon schemes had become complex and legalistic in...
Sir Alan Bates told us that the Horizon schemes had become complex and legalistic in nature, increasing both the time taken to resolve cases and the cost of administering schemes60. He acknowledged that the Horizon schemes were intended to be …
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HM Treasury
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25
Conclusion
12th Report - Government compensat…
We also asked about differences between schemes in access to legal support.
We also asked about differences between schemes in access to legal support. The Home Office told us that it was struck by the contrast between Windrush and the Horizon schemes in access to funded legal advice, explaining that Windrush was …
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HM Treasury
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26
Conclusion
12th Report - Government compensat…
Representatives of victims have expressed a need for greater transparency and clarity about how long...
Representatives of victims have expressed a need for greater transparency and clarity about how long the claims process is expected to take, and have been critical about the lack of information provided to victims about how long they might wait …
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HM Treasury
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27
Conclusion
12th Report - Government compensat…
Peter Gibson from Fighting With Pride told us that the MoD initially promised victims regular...
Peter Gibson from Fighting With Pride told us that the MoD initially promised victims regular updates during the claim process, but this did not come to fruition, and it also said the MoD launched the scheme without delivering its online …
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HM Treasury
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28
Conclusion
12th Report - Government compensat…
Our survey of individuals with experience of government compensation schemes found that two-thirds of people...
Our survey of individuals with experience of government compensation schemes found that two-thirds of people had irregular or no communication during the claim process. Of total respondents to our survey, 53% felt 69 Q89 70 C&AG’s Report, para 14 71 …
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29
Conclusion
12th Report - Government compensat…
We asked the Departments what feedback they had received from victims about transparency during the...
We asked the Departments what feedback they had received from victims about transparency during the claim process and what it was doing to address feedback it received. DBT told us it amended the claim guidance on the Horizon Compensation Schemes, …
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HM Treasury
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Correspondence 8 letters
10 Sep 2026
From committee
Open letter to the respondents of the Committee’s inquiry into ‘Government compensation schemes’, 9 September 2026
Parliament page
10 Sep 2026
From committee
Letter to the Minister for Veterans and People relating to Closure of the LGBT Financial Recognition Scheme to new applications, 4 September 2026
Parliament page
6 Jul 2026
To committee
Letter from the Infected Blood Compensation Authority relating to Infected blood compensation scheme oral evidence session, 29 June 2027
Parliament page
29 Jun 2026
To committee
Letter from the Director, Post Office Policy at the Department for Business and Trade relating to Government compensation schemes: update oral evidence session, 19 June 2026
Parliament page
29 Jun 2026
To committee
Letter from the Permanent Secretary at the Department for Business and Trade relating to further detail on outreach across the redress schemes, 23 June 2026
Parliament page
29 Jun 2026
To committee
Letter from the Chief Operating Officer of the Civil Service and Permanent Secretary at the Cabinet Office relating to Compensation scheme oral evidence follow-up, 18 June 2026
Parliament page
22 Jun 2026
To committee
Letter from the Civil Service Chief Operating Officer and Cabinet Office Permeant Secretary relating to Government compensation schemes evidence session follow-up, 16 June 2026
Parliament page
1 Jun 2026
To committee
Letter from the Chief Executive Officer of Fighting With Pride relating to LGBT+ Financial Recognition Scheme, 20 May 2026
Parliament page