The Post Office Capture Redress Scheme is for former postmasters who suffered financial shortfalls because their branch used the Capture accounting system between 1992 and 2000. The government announced the scheme on 19 June 2025; applications opened on 29 October 2025. As of the latest GOV.UK guidance update, dated 4 September 2026, applications continue in phase 2 with no pause.
What is the Capture Redress Scheme?
Capture, also called the Capture Accounting System in the scheme regulations, was a Post Office branch computer and accounting system used in some branches from 1992 to 2000. The government accepted findings by independent forensic accountants Kroll Associates that there was a reasonable likelihood the system created financial shortfalls for postmasters. Some postmasters used personal savings to cover apparent differences.
The scheme provides a route to redress for qualifying losses and their effects. It is separate from the Horizon schemes: eligibility turns on the system involved, the period, the claimant’s role and the circumstances of the loss. The government’s 19 June 2025 announcement set out the scheme’s intended structure; the current scheme guidance explains how to apply and how claims are considered.
Who can apply for the Capture Redress Scheme?
Applicants must meet all three core criteria:
- They were a postmaster between 1992 and 2000.
- Their branch used Capture.
- They suffered financial shortfalls as a result of Capture.
The Department for Business and Trade (DBT) decides whether these criteria are met. The scheme guidance excludes assistant postmasters, contractors and other Post Office branch staff, as well as people with a criminal conviction related to Capture.
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A person with a Capture-related conviction who believes they were wrongly convicted may seek a conviction review through the Criminal Cases Review Commission in England, Wales or Northern Ireland, or the Scottish Criminal Cases Review Commission in Scotland. If a conviction is overturned, an appropriate redress route may become available; that is distinct from automatic eligibility for this scheme.
Applying on someone else’s behalf or for partnership losses
A relative or another personal representative may apply for a postmaster who cannot apply themselves. Where the losses arose in a business partnership, one partner can apply for partnership financial losses. Only the contracted postmaster can claim their own non-financial losses. Partners should agree in advance who will receive a payment and how it will be divided.
If the shortfalls involved Horizon
Official guidance says computer-related shortfalls after 2000 may relate to Horizon and points applicants to the Horizon Shortfall Scheme. The two routes should not be treated as interchangeable: the system and facts of an individual case determine which scheme may be relevant.
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How much compensation can I get?
Eligible applicants receive a fixed preliminary payment of £10,000 once DBT or the independent panel confirms eligibility. This is part of the possible total award, not an extra bonus. For example, if the panel sets total redress at £50,000, the £10,000 already paid is deducted and a further £40,000 is due. If the total award is £10,000, no additional payment is due.
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The panel considers financial losses, including the shortfall and consequential losses, alongside non-financial effects such as emotional distress, reputational damage and psychological effects. It assesses the case holistically and aims to reach a fair and proportionate award.
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How are claims assessed?
The process has two stages: DBT first checks eligibility, then an independent panel assesses eligible claims and determines the appropriate redress.
Stage 1: DBT eligibility review
Caseworkers consider the application and impact statement, the applicant’s supporting evidence, available Post Office records and relevant third-party records. They check whether the applicant was a postmaster, whether the branch used Capture and whether the shortfalls are described as occurring during the relevant period and resulting from Capture.
Possible supporting material includes appointment letters or contracts, system or training records, and branch documents, where available. If a caseworker thinks the applicant may not qualify, they may ask for more evidence; the applicant then has two months to provide it. If DBT finds the applicant ineligible, there is no preliminary payment and the claim does not go to the award panel.
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An applicant can appeal an eligibility decision to the independent panel chair. The chair conducts a further independent review and can decide eligibility either way.
Stage 2: independent panel assessment
Each panel has three members with relevant legal, healthcare and subject-matter expertise. It decides claims on the balance of probabilities: whether the claim is more likely than not. The panel considers both whether the loss resulted from a Capture shortfall and what redress is appropriate in light of the claimant’s circumstances.
The guidance recognises that records may be limited because the events happened decades ago. The panel takes that difficulty into account and can request clarification through a caseworker. Applicants should provide evidence they can reasonably obtain, but the age of the events is part of the assessment context.
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How do I apply?
- Open the official GOV.UK Capture Redress Scheme guidance and use its application form and submission instructions. Send the completed form and supporting material to the email address specified there.
- Prepare three identity documents, as requested by the current guidance. If you do not have a legal representative, you must also submit a countersignatory form and the countersignatory’s identity document showing their address. The countersignatory must have known you for at least two years, be able to identify you, and meet the guidance’s good-standing or recognised-profession criteria.
- If you have a legal representative, they can verify your identity instead of using a countersignatory. The guidance encourages applicants to use legal representation and describes a government legal-costs framework.
The independent Information and Support Service can provide impartial information about the form and process, but it does not give legal advice. Applicants who need an alternative form or help completing it can contact DBT using the contact details in the official guidance.
Protect yourself from application scams
- Use the application link on GOV.UK; do not follow application links sent by email or text.
- DBT caseworker email addresses end in @businessandtrade.gov.uk.
- Caseworkers will never ask you to pay money or provide passwords.
- If an email seems uncertain, check it with the scheme using the published official contact address.
Will compensation affect my benefits or tax?
For UK residents, GOV.UK says scheme payments are not taxable and do not affect benefits. The 2025 regulations set out the statutory tax treatment, including provisions for income tax and capital gains tax exemptions, corporation tax treatment and inheritance tax relief. Those provisions apply retrospectively from 27 October 2025 to the specified receipts, disposals and deaths. This summary describes UK treatment and should not be assumed to cover tax consequences in other countries.
Scheme timeline and current status
| Date | What happened |
|---|---|
| 19 June 2025 | The government announced the scheme’s eligibility, two-stage process and assessment approach. |
| 29 October 2025 | Applications opened, initially testing the process with 150 claimants. |
| 4 September 2026 | GOV.UK guidance was last updated. It said the scheme had moved to phase 2 after review and that applications continued without a pause; the update also clarified mobile form download instructions and countersignatory details. |
The launch announcement described what the scheme would provide; the later guidance sets out the application process and rollout status as of its update date. The official material does not establish a typical award amount or a published set of Capture-specific application outcomes, so broader Horizon figures should not be read as statistics for this scheme.
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