7 Accepted

Horizon scheme settlement payments fall short of expectations in 2023-24 Annual Report and Accounts.

Conclusion
In the Department’s 2023–24 Annual Report and Accounts, it estimated that £866 million of the combined Horizon Schemes provisions would be settled within 1 year.8 In a letter provided after our oral evidence session, the Department confirmed that it paid a total of £701 million in scheme settlements during 2024–25, of which £552 million had been included in the provision in the 2023–24 Accounts.9 The payment figures therefore fell short of the expectations set in the 2023–24 Annual Report and Accounts.10
Government Response Summary
The government agrees with the committee's observation. It commits to finalising and sending letters to remaining Horizon Shortfall Scheme claimants by September 2025 and will write to unregistered Horizon Convictions Redress Scheme claimants by the end of September 2025. It is also reviewing a recommended HSS closure date and will respond by October 2025.
Government Response
Accepted
HM Government Accepted
1.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2025 1.2 The Department for Business and Trade (the department) is working with the Post Office to finalise letters to be sent to remaining eligible claimants in Horizon Shortfall Scheme (HSS). Approximately 24,000 have been sent out already, but further work is taking place with 44 DWP to identify the addresses of the remaining postmasters. This is expected to be implemented by September 2025. 1.3 Sir Wyn Williams, the Chair of the Horizon IT Inquiry, has recommended through Vol 1 of the Horizon IT Inquiry report that a closure date of midnight on 27 November 2025 be set for the HSS. As with all recommendations raised in this report, the department is reviewing this and will provide a response by 10 October 2025, if not sooner. Should a closure date be agreed, the department would expect that claimants would be comprehensively communicated with so that they are aware of this deadline and how they can apply, noting the ongoing work to finalise letters referenced in paragraph 1.2. 1.4 On the Horizon Convictions Redress Scheme (HCRS), the relevant justice authority informs individuals who have had their convictions overturned by the legislation. This is the point at which they are informed that they are eligible for redress. The department is aware that not all recipients of these letters have registered with HCRS. The department will write to all individuals who have received a letter but are yet to register for redress, to encourage them to do so. We aim to complete this by the end of September 2025.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 1.1 yr
Report published 25 Jun 2025