The government has on Tuesday officially recognised Capture, the software which preceded Horizon, could have created shortfalls affecting postmasters.
It has asked the Post Office to urgently review its files and evidence so the Criminal Cases Review Commission (CCRC) and the Scottish Criminal Cases Review Commission (SCCRC) can ensure no one was wrongfully convicted of a Horizon-style injustice.
Responding to the independent Kroll report into the software, the business secretary has promised to provide redress for postmasters who suffered losses as a result of Capture. The government said it will work swiftly with victims to determine its form and scope, alongside eligibility criteria, by Spring 2025.
The Capture accounting system was rolled out across some Post Office branches from 1992 before it was replaced by Horizon in 1999. The government commissioned the independent report following postmasters coming forward publicly in January indicating they had faced detriment due to the Capture system. In its report, Kroll concluded Capture could have created shortfalls.
The response comes as the government marks £500 million paid to more than 3,300 Horizon victims.
“It is thanks to testimony of postmasters that this has been brought to light and failings have been discovered,” business and trade secretary Jonathan Reynolds said.
“We must now work quickly to provide redress and justice to those who have suffered greatly after being wrongly accused. I’d like to encourage anyone who believes they have been affected by Capture to share their story with us so we can put wrongs to right once and for all.”
Post office minister Gareth Thomas added: “It’s taken a long time to reach this point which is why my priority now is to deliver justice and redress to postmasters as swiftly as possible. We will do everything we can to correct the mistakes of the past and ensure they are not repeated.
“Postmasters have raised concerns with me that their income has not kept up with inflation over the past decade. The government therefore welcomes that the Post Office is going to make a one-off payment to postmasters to increase their remuneration.”
Due to the length of time which has passed since the Capture system was in use several issues have complicated the investigation including:
- Far greater timescales, meaning a greater population of the users may have sadly died
- Loss or destruction of relevant evidence for example relating to shortfalls, suspensions, terminations, prosecutions, and convictions
- At least 19 different operational versions of the Capture software during the period
- Ambiguous number of users during this period
Unlike Horizon, it is currently uncertain how many criminal prosecutions were based on Capture evidence. These challenges also mean it will be difficult for claimants to corroborate their claims with evidence.
The Post Office has indicated it holds further information on convictions and prosecutions during the Capture period. The government has asked them to carry out their review of these records urgently and send information to the CCRC and SCCRC.
£20 million boost to postmasters
Minister Thomas has also announced the government will support the Post Office network with a further £37.5 million subsidy. It comes as the Post Office today announced a £20 million boost for postmasters to address their concerns that their income has not kept up with inflation over the past decade.
“This government is committed to strengthening the Post Office and making sure postmasters receive the income they deserve for the vital services they provide for communities across the country,” Thomas said.
“That’s why we are providing a further £37.5 million of network subsidy this financial year which is essential to stabilise the organisation. I welcome the Post Office’s one-off payment this month to postmasters, which will go a long way in easing the burden they face ahead of Christmas.”
The £20 million boost to postmaster remuneration comes as the Post Office moves quickly to deliver on its ‘New Deal for Postmasters’ following its Transformation Plan announcement on 13 November.
Both independent postmasters and Post Office’s retail partners that operate branches on its behalf will receive the top-up payment ahead of Christmas. The top-up payment will be based on both the standard fixed and variable remuneration the branch received in November.
“As we implement our ‘New Deal for Postmasters’ we are fast-tracking payments to postmasters in recognition of the challenging trading conditions they are currently experiencing. Our customers want services in the run-up to Christmas that are convenient and in-person, and that’s what our postmasters and retail partners offer. We want our postmasters to focus on what they do best, serving their communities, and not to be worried about making ends meet,” Neil Brocklehurst, Post Office acting chief executive, said.
Calum Greenhow, chief executive for the National Federation of SubPostmasters, welcomed the announcement.
“The NFSP has long campaigned for a significant increase in postmasters’ remuneration to reflect the value of the vital public services that postmasters deliver to communities. We know that right now many of our postmasters are struggling and are very worried about their ability to pay bills and provide for their families,” Greenhow said.
“This £20m as a one-off payment in December is not only well timed but very much required. We look forward to working with the government and Post Office to deliver a further £100m uplift in annual remuneration by March 2026.”
Subject to the government funding, the Post Office’s Transformation Plan provides a route to adding an additional quarter of a billion pounds annually to total postmaster remuneration by 2030 by dramatically increasing postmasters’ share of revenues.
As part of the plan, postmasters can expect up to £120m in additional remuneration by the end of the first year of the Plan, representing a 30 per cent increase in revenue share. The ambition is to double average annual branch remuneration by 2030 with the right market and regulatory landscape.
