The Government’s £600,000 offer was an optional fixed-sum compensation route for people whose Horizon-related convictions had been overturned. Claimants could choose it instead of having their losses assessed individually. Officials said the aim was to get compensation to people faster; inquiry material described the offer in political terms, but does not by itself prove that ministers made it to gain political credit.
Who could choose the £600,000 offer?
The Government announced the fixed offer in September 2023 for people with overturned convictions. In January 2024, then-minister Kevin Hollinrake told the Commons that eligible claimants could choose either an individual assessment or an upfront £600,000 settlement. It was an option for this group, not an automatic payment to everyone affected by Horizon. Hansard, 10 January 2024
How did the two compensation routes differ?
| Route | What it offered | Key trade-off |
|---|---|---|
| Fixed offer | A £600,000 settlement for an eligible person with an overturned conviction. | A defined sum rather than an individual valuation of the claim. |
| Individual assessment | An assessment of the claimant’s particular losses. | It could take longer, but some claimants could be entitled to more than £600,000. |
The Business and Trade Committee heard evidence from Department for Business and Trade official David Bickerton on 16 January 2024. He said officials were “trying to scoop up as many postmasters as possible, so that they could get their compensation as quickly as possible.” He also acknowledged: “there will be a lot of claimants who are due more than that.” Committee oral evidence, 16 January 2024
That makes the choice more than a question of whether £600,000 sounds large: it is a choice between a fixed settlement intended to speed up payment and a claim assessed on its own facts. The sources cited here do not establish that £600,000 is fair compensation for every claimant, or that an individual assessment would produce a particular amount.
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Why was the offer described as “political”?
Material from the Post Office Horizon IT Inquiry records discussion of a “clear Political intervention into a Post Office scheme,” alongside remarks about politicians taking an opportunity to seek publicity or credit. The material also refers to the £600,000 as a Secretary of State decision. Inquiry transcript INQ00001200
This supports saying that the offer was characterized or discussed in political terms. It does not, on its own, establish that securing political credit was the Government’s motive. The distinction matters: a record of criticism or testimony about political intervention is not the same as a proven finding about why the offer was made.
Do not confuse it with the £75,000 Horizon Shortfall Scheme offer
The £600,000 route concerned people with overturned convictions. A separate £75,000 fixed-sum option was described for the Horizon Shortfall Scheme, which covered a different group: people who were not part of the group litigation and did not have a criminal conviction. The House of Lords set out these distinctions in a debate on 27 February 2025. Scheme rules and availability can change, so claimants should check current official guidance before making a decision. Hansard, 27 February 2025
What did the dated figures show?
- The Government reported that 58 people had accepted the £600,000 offer as of 3 January 2025. This is a dated figure, not a current take-up total. Hansard, 27 February 2025
- As of 7 February 2025, 557 individuals in England and Wales had been notified that at least one conviction was quashed under the Act. Hansard, 27 February 2025
- As of 31 January 2025, £156 million, including interim payments, had been paid under the Horizon Convictions Redress Scheme. Hansard, 27 February 2025
How does the constitutional issue fit in?
The House of Lords Constitution Committee described the faulty Horizon system, used in post offices from 1996, as having led to many hundreds of wrongful convictions. It also called the legislation that quashed convictions a profound constitutional novelty because Parliament was setting aside criminal convictions entered by courts. That constitutional question is separate from an individual claimant’s decision about which compensation route to take. House of Lords Constitution Committee, May 2024
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