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GLO Compensation Scheme Guidance and Principles
1. Background
11.
1.1.1.
1.1.2.
1.1.4.
1.2.
1.2.1.
+See
Introduction
The Government announced the ex-gratia Group Litigation Order (GLO) Compensation
Scheme (the “Scheme”) on 22 March 2022 with the objective of ensuring postmasters who
were part of the GLO and not eligible to seek compensation from the Post Office have access
to fair compensation for their Horizon-related losses. The scheme will be delivered by the
Department for Business and Trade (DBT, formerly BEIS). This document sets out the
underlying principles that will govern the assessment of any claims under the Scheme and
provides guidance in relation to such claims.
The central goal, and the key overarching principle, of the Scheme is to deliver compensation
to eligible postmasters that is full and fair, restoring them to the position they would have
been in had it not been for the Horizon-related actions of the Post Office. Decisions will be
taken in the light of established legal principles and the findings from the Common Issues
Judgment and the Horizon Issues Judgment. The Scheme will take into account all relevant
facts and matters presented in the claim in order to produce a fair result for the postmaster.
Claims can be made for Horizon Shortfalls and for Consequential Losses resulting from them
(the definitions for which can be seen in paragraph 1.3).
This guidance sets out bandings and ranges for some non-pecuniary losses. These bands and
ranges are not limits on what can be claimed under the Scheme. They should instead be used
as an indicative guide for you, your lawyers and the Independent Panel (as defined below).
The Scheme expects there will be some cases where the facts of the case demand awards
significantly higher than the upper figure for the top band. Each case will be looked at in the
round and decided on its merits, guided by considerations of fairness. If you cannot agree
the amount of compensation bilaterally with DBT, it will be decided by the Independent
Panel.
\f you are a GLO claimant and are not currently legally represented, you are strongly urged to
engage lawyers as soon as possible. Three firms of lawyers — Freeths, Howe & Co and
Hudgells Solicitors — have agreed not to make any charges to claimants for work on the
Scheme: they will be paid by government at rates agreed with them, which are set out ina
Tariff of reasonable costs*. Other firms can access the same rates. You should not engage any
firm which asks you for money now or later, or which offers a “no-win, no-fee”, conditional
fee or litigation funding agreement.
Evidence required
Although it is in your interests that your claim is well evidenced and quantified in respect of
each head of loss, the Scheme recognises that this may not always be possible given the
circumstances and the length of time which has passed, and that there will be an absence of
evidence. As such, DBT will take a proportionate and considerate approach to the availability
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of evidence albeit there will be some claims in which expert evidence may be required and
we have made this clear in the guidance below.
1.2.2. The evidence base for your claim should include the Schedule of Claimant Information (SOC!)
submitted for the High Court case, although the Scheme accepts that aspects of these
statements will need to be updated and expanded upon to reflect subsequent events or
newly available information. Other statements and supporting documentation from that
case can also form part of your evidence base.
1.2.3. The Post Office is undertaking a comprehensive programme of disclosure on terms discussed
with your legal advisors. Any evidence obtained by the Scheme from the Post Office will be
shared with you at the earliest opportunity.
1.2.4. You should use any remuneration information provided by the Post Office as evidence. If
you need additional information relating to your tax records to support your claim, you may
also wish to seek evidence from HMRC’. You can ask your legal advisor to do this on your
behalf with your signed consent (a digital signature is acceptable).
1.2.5. If you feel that you are unable to engage with this process, you can simply submit your
documentation from the High Court, including your SOCI, to the Scheme. This may not
produce the optimum outcome but will still allow your claim to be considered.
Benefits
1.2.6. The Compensation Recovery Unit (CRU) of the Department for Work and Pensions (DWP) is
responsible for recovering social security benefits paid where a compensation payment has
subsequently been made. The Department has received an exemption from this process and
will therefore not require disclosure from DWP on personal injury benefits which you may
have received. However, personal injury claims may still need to be registered with the CRU,
a process for which will be agreed with DWP and claimants’ legal representatives.
1.2.7. You should include any other income support received in your application for loss of
earnings calculations. You do not need to seek disclosure from DWP prior to submitting your
application. The Department reserves the right to request disclosure following assessment
of the claim, should it be proportionate to do so.
1.3. Definitions
1.3.1 Consequential Loss means financial or non-financial loss that is not a Shortfall Loss, but
which flows from and was caused by the Horizon Shortfall — for example loss of earnings or
damage to reputation.
1.3.2 Horizon Shortfall means a shortfall in stock or cash at a postmaster’s branch compared with
the amount of stock or cash indicated on Horizon for that branch, where the shortfall may
have been caused by previous versions of Horizon (sometimes referred to as Legacy Horizon,
Horizon Online or HNG-X) or a breach of duty related to such a shortfall by Post Office
(including duties identified in the findings of the Common Issues and Horizon Issues
Judgments). Shortfall Loss means the amount of a Horizon Shortfall that the postmaster has
paid or is regarded by Post Office as still owing.
2
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1.2.
2.1.3.
3.
3.1.
3.1.1
3.1.2
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Is my claim eligible?
In order to be eligible for the GLO Scheme, you must meet the criteria set outin the next
two paragraphs.
You must have been a claimant in the action Alan Bates and Others v Post Office Ltd pursued
under a Group Litigation Order in 2016 and a party to the Settlement Agreement dated 10%
December 2019 with Post Office Limited (“the 2019 Settlement”).
Your application and time with Post Office must not involve or relate to any criminal
conviction(s) that relied on evidence from Horizon; claims from convicted postmasters will
be processed by Post Office once the conviction has been overturned. Please note, if you
were prosecuted but not convicted, or you received a caution, you are eligible for the
Scheme. Convicted postmasters whose convictions were not dependent on Horizon may be
accepted on the scheme on a case-by-case basis.
You can apply on behalf of a deceased GLO postmaster or a GLO postmaster who is suffering
from capacity issues. If you are making an application on behalf of another person, you must
identify your legal authority to act on their behalf; for example, executor, personal
representative, attorney or deputy of the person on whose behalf you are making the
application. Please note you should provide proof of this legal relationship.
If you were a shareholder or a director of a company or a partner in a partnership which
ceased to exist and which was a party to the GLO, you are able to make a claim as the linked
individual. If appropriate, an offer of an ex gratia payment will be made to you and any other
shareholders and directors of the company or partners of the partnership, which may have a
legitimate interest in that payment. It is your responsibility to seek an agreement with them
as to who will be the recipient of the payment and how it should be split between
yourselves. If the company or a partnership has ceased to exist, it will not be necessary to
restore it except in a limited number of circumstances, for example, when the company is
set up as a community interest company.
What is the process?
Parties involved
. An independent advisory board has been established to advise Ministers on how best to
manage delivery of the Scheme. It will not have any role in individual cases, but will monitor
the overall progress of the Scheme, ensuring that the process is working well and identifying
any blockages. Its membership comprises:
e Professor Christopher Hodges, an academic expert in the field of alternative
dispute resolution;
e Lord Arbuthnot & Lord Beamish, two Parliamentarians recognised for their past
involvement in pursuing the resolution of the Horizon scandal; and
e Professor Richard Moorhead, an academic expert in the field of legal ethics.
. It will be supported by a DBT secretariat and officials.
3.1.3. DBT has appointed:
e Addleshaw Goddard as external legal advisors to advise DBT on individual cases;
3.2.
3.2.1.
3.2.2.
3.3.
3.3.1.
3.3.5.
e Dentons as Alternative Dispute Resolution experts who will be independent
claims facilitators supporting the progress of claims and will provide
arrangements for making relevant papers transparent to all parties.
Dentons has procured:
© anindependent Panel comprising legal, accounting, medical and retail experts,
depending on the details of the claim (the "Independent Panel"); and
o a “Reviewer” — Sir Ross Cranston, a former High Court judge, who will undertake
exceptional review of cases.
Registration in scheme
On 10 February 2023, DBT opened registration for the Scheme. Your legal advisors are
invited to fill out the Registration Fort
blished here and return to
~~" Jas soon as possible.
Only if you choose to represent yourself should you fill in your own registration form.
Submission of a claim
You or your chosen legal advisor should present all losses in your claim in the application
form, and submit all relevant information and evidence to the Scheme - either at the same
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time as submitting your application form or following a request from the Scheme setting out
in detail the evidence required for each head of loss.
The claim should explain in as much detail as possible:
«the particular losses being claimed;
e the specific amount of loss being claimed;
e how this loss was caused by a Horizon Shortfall; and
e the steps the postmaster took to attempt to reduce this loss, and the impact
these steps had.
Your lawyer will be granted access to the Dentons Direct platform in order to upload claims.
They will also be able to check progress on a user-by-user basis. You will be granted access
you choose not to be legally represented.
If you are legally unrepresented and do not have access to the internet, you can send your
application form by post to:
Horizon GLO Compensation Scheme
C/O Dentons UK and Middle East LLP
1 Fleet Place
London EC4M 7WS
If you send your application via courier, the following address should be used:
Horizon GLO Compensation Scheme
C/O Dentons UK and Middle East LLP
1 Fleet Place
London EC4M 7RA
Please include reference "DSB/RZF/TS/079928.00001" in all submissions sent by post or
courier.
if
3.4.
3.4.1.
3.4.2.
3.4.5.
3.5.
3.5.1.
3.5.2.
3.5.3.
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On submission of a claim, that claim will enter the claims facilitation process conducted by
Dentons and a named claims facilitator will be appointed to the case.
Assessment of claim
Consequential Loss claims will be assessed against the established legal principles set out at
paragraph 4.4, in addition to considering what is fair in all the circumstances.
Claims will be considered by DBT, with advice from Addleshaw Goddard, leading to an initial
offer. In the light of further progress with the claim as described below, they will reconsider
this offer.
If DBT considers that information may be available to you which would help the assessment
of your claim for Consequential Loss, DBT will ensure that your advisor is contacted and
request that this information be provided within 28 days.
If DBT is not prepared to accept elements of losses claimed, it will explain why and ask
you/your legal advisor for further information. If, following such investigation, DBT does not
accept those losses as claimed then it will make an offer (or nil offer) with an explanation for
the offer.
Addleshaw Goddard will communicate the DBT offer to you and your legal advisor. This
communication will explain the approach adopted when calculating the offer and its
justification by reference to the evidence provided in the claim form and the scheme
principles. It will set out the reasons for any divergence from the amount claimed.
Reaching agreement with DBT
Once you have received an offer in respect of a claim, unless you have accepted that offer,
the claim will enter the first facilitation period, during which Dentons' aim will be to promote
common understanding and agreement between the parties. As a first step they will invite
your legal advisor and DBT to a discussion. They may follow up on this by adopting any of
the following approaches:
e Requesting further information from your legal advisor;
e Recommending that expert evidence is sought;
* Encouraging you and/or DBT to revise your positions; or
e Referring the case to a senior lawyer at Dentons (the “Senior Dentons Lawyer”)
for consideration as to next steps.
The claims facilitators will monitor progress in the light of the steps taken.
The claims facilitators will update the approach described above as the evidence or the
parties’ positions change. Updates will be made available to you and your legal advisor, and
it will be open to the parties to comment on them. If parties are not responding within
standard timescales (which the claims facilitators will confirm to the parties in writing) the
claims facilitators will chase them up. The status of the claim will be updated on the Dentons
Direct platform by the claims facilitation team as matters progress. When a status is
changed, a notification will be automatically sent from Dentons to you and DBT.
In adopting any of these approaches the claims facilitators will have regard to
proportionality, including the likely costs (including costs to both parties and their own
expenditure). Rather than adopt any approach which would involve costs that would exceed
the difference between the parties, they should encourage the parties to reconcile their
3.5.5.
3.5.10.
3
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differences. Only if a case is likely to set a precedent for others should this criterion be
relaxed.
If the Dentons Senior Lawyer judges that it would assist the parties’ progress towards
agreement, they can decide to put a case to the Independent Panel for a first assessment,
based on Dentons' summary of the case. The Dentons Senior Lawyer will have discretion as
to whether a case should be referred to the Independent Panel. The Dentons Senior Lawyer
is unlikely to refer a case to the Independent Panel in the following circumstances:
¢ If there is not a substantial difference between the last offers exchanged by the
parties;
e Further evidence is required; or
e There is no issue on which it would be helpful to obtain the views of the
Independent Panel.
You have the right, subject to paragraph 3.5.5, to have your case considered by the
Independent Panel should compensation not be agreed through this process.
The Independent Panel will apply its independent judgement to individual cases, guided by
considerations of fairness and using the principles and guidance developed by DBT. It will
make an assessment of the issues raised, which may recommend a specific award or request
further evidence or analysis.
If the Panel considers that an eligible claim requires further evidence to allow the Panel to
recommend an outcome, the Panel can recommend further evidence is sought in
accordance with the procedure set out in paragraphs 3.5.9, 3.5.10 and 3.5.11 below (as
applicable). Any funding for additional evidence will be considered in accordance with the
agreed Tariff of Reasonable Legal Costs* The Panel should only request further evidence in
exceptional circumstances, i.e. where such evidence is deemed critical to the Panel's ability
to recommend an outcome.
If, in the exceptional circumstance, upon receipt of instructions in relation to an eligible
claim, any Panel member considers that they are unable to form a view on a head of loss
that they have the expertise for without further evidence, the Panel member should notify
the Dentons Panel and Reviewer Liaison allocated to the claim (the “P&R Liaison”) as soon
as possible. The P&R Liaison will then communicate this to the other Panel members
allocated to the claim in order to determine whether there are any other heads of loss which
any other Panel member considers they are unable to form a view on without further
evidence and whether the Panel can form a view on any heads of loss of the particular claim.
If, in the further exceptional circumstance, it becomes apparent that the Panel are unable to
form a view on the entirety of the eligible claim without further evidence, the P&R Liaison
will write to the Panel members constituted for that claim and will seek agreement on the
adjournment of the first Panel meeting pending receipt of further evidence. If agreement is
not reached on the adjournment prior to the first Panel meeting, this should be discussed by
the Panel as the first agenda item during the first Panel meeting and if required, a vote
should take place on the adjournment of the meeting. Each Panel member shall have one
vote and the first Panel meeting will be adjourned if at least two Panel members vote to
adjourn the Panel meeting. If the first Panel meeting is adjourned, the claims facilitator will
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3.5.11.
3.5.12.
3.5.11.
3.5.12.
3.5.13.
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inform the parties and will request that you provide this further evidence by a specified
date. The first Panel meeting will be adjourned until you have provided the evidence sought
or the deadline to provide this information has passed.
If the Panel requires further evidence in relation to a discrete head/s of loss but the Panel
has sufficient information to form an initial view regarding the other heads of loss, the Panel
should provide its initial view on the heads of loss it is able to provide a view on and may
choose to provide no view in relation to the head/s of loss it requires further information in
respect of. The claims facilitator will then seek this further evidence from you when
providing a summary of the Panel's initial view.
The Independent Panel's initial, non-binding, assessment — including its reasoning — will be
recorded in writing and made available to you and your legal advisor.
The claims facilitators will commission the provision of any evidence or analysis requested
by the Independent Panel. This will be in addition to any expert evidence commissioned by
you or your legal advisor. They will then continue to promote agreement between the
parties.
If the parties do not reach agreement within three weeks following the Independent Panel’s
initial non-binding assessment at the first Independent Panel stage, the case will be referred
to the Independent Panel for a final binding assessment. This will again be based on
Dentons' summary of the claim and offers, taking account of the parties’ views of the issues.
If, following the expiry of the three-week facilitation period after the first Independent Panel
stage, the parties require further time to reach agreement, the parties may agree to extend
this facilitation period in order to attempt to reach agreement before the case is referred to
the second Independent Panel stage. Should the parties agree to extend the facilitation
period, they should inform the claims facilitator assigned to that claim of this agreement.
The Independent Panel's final assessment will take into account any new evidence provided
and will include a specific binding award, together with a written explanation of their
reasoning. It will be sent to you and your legal advisor as well as to DBT and Addleshaw
Goddard.
3.6. Review Process
3.6.11.
3.6.12.
If you believe that there has been a manifest error, procedural irregularity or substantive
error of principle in the Independent Panel’s final assessment of the claim, or if the Panel’s
final assessment is substantially inconsistent with the Guidance and Principles, (the “Review
Criteria”), you can make an application to refer it to the Reviewer for exceptional review.
DBT will have the same right to seek exceptional review of a case. This power would allow
DBT to challenge the Independent Panel’s final assessment if it believed that the
Independent Panel had departed from the established framework for assessing claims which
is intended to achieve consistency and fairness when making offers to postmasters.
An Independent Panel final assessment is “substantially inconsistent with the Guidance and
Principles” if it is obvious or easily demonstrable that in making its final assessment, the
Independent Panel has failed to apply or has misinterpreted the Guidance and Principles in a
manner which has had a material effect on the Independent Panel’s final assessment. For
the avoidance of doubt, an Independent Panel final assessment will be “substantially
inconsistent with the Guidance and Principles” where it has failed to deliver full and fair
compensation. In determining whether the Independent Panel's final assessment has
delivered full and fair compensation, the Reviewer will consider whether the compensation
3.6.13.
a)
b)
qd)
3.6.14.
3.6.15.
a)
b)
3.6.16.
3.6.17.
3.6.18.
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awarded by the Independent Panel in its final assessment puts the postmaster in the
position that they would have been in but for the Horizon-related actions of the Post Office.
A “manifest error” is an error that is obvious or easily demonstrable without extensive
investigation and which has a material effect on the Independent Panel's final assessment.
This includes:
A decision that went beyond the scope of what the Independent Panel was permitted to
assess.
A decision so obviously irrational that no person, acting reasonably, could have made it.
An error on the part of the Independent Panel in taking account of clearly irrelevant matters
or failing to consider clearly relevant matters.
An error in the mathematical calculation of the compensation sum awarded by the
Independent Panel in its final assessment (but not the assumptions on which that calculation
was based provided that such assumptions are not factually incorrect or irrelevant).
A “procedural irregularity” is an irregularity in the procedure or decision-making process
that the Independent Panel has adopted while making its final assessment, which made a
material difference to that assessment. Circumstances where a procedural irregularity might
arise include where the Independent Panel has not correctly followed the Panel Terms of
Reference or where the Independent Panel has not properly observed the principles of
natural justice in the decision-making process. For the avoidance of doubt, a failure to
comply with the timeframes set out in the Panel Terms of Reference is unlikely to amount to
a procedural irregularity.
A “substantive error of principle” would arise where the Independent Panel's final
assessment involved the application of a principle identified in the Guidance and Principles
which is:
obviously inconsistent with generally accepted legal principles (either existing at the time
the Guidance and Principles were finalised or after that date); or
where the principles used to assess a case were clearly inappropriate to its circumstances.
Any such application must be made within 15 working days of the communication of the
Independent Panel’s final assessment. Any case submitted for the review should be made
using the form ‘Template Review Application’ provided by the Dentons claims facilitator and
should: (1) identify the part of the Independent Panel’s final assessment that you are
seeking a review in respect of; (2) identify the Review Criteria (set out in paragraphs 3.6.2-
3.6.5 above) under which the review application is being made; 3) set out what the
Independent Panel’s final assessment should have concluded, including as to the sum it
should have awarded, in the absence of the applicable Review Criteria; and (4) provide
reasons for this view (the “Review Application”).
Upon receipt of a Review Application, the Dentons Senior Lawyer will provide their view to
the Reviewer as to whether there is a prima facie case that it meets the Review Criteria. The
Reviewer will decide whether such a case exists and will communicate his decision to the
P&R Liaison within 10 working days of receipt of the Dentons Senior Lawyer’s view. If the
Reviewer concludes that a prima facie case does not exist, the claims facilitator will notify
you and DBT accordingly and the Independent Panel's final assessment will stand.
If the Reviewer concludes that a prima facie case exists, the claims facilitator will notify you
and DBT accordingly and will invite you and DBT to prepare written submissions. The Review
3.7.
3.7.11.
3.7.12.
3.7.13.
3.8.
3.9.
3.9.11.
3.9.12.
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Application will be referred to the Reviewer for consideration. The Reviewer will consider
the Review Application alongside any comments on it which he may invite from the
Independent Panel and the parties’ written submissions. He may uphold the Independent
Panel’s final assessment or, in the event of finding that the Review Criteria apply, makea
revised award of compensation. The Reviewer's decision will be sent to you and your legal
advisor and to DBT and Addleshaw Goddard, together with a written explanation. The
Reviewer should provide his decision within two weeks of receiving the instruction letter.
The Reviewer's finding will be the final stage to reach agreement between you and DBT on
your claim. DBT will not consider any further offers or changes to the offer after this.
Acceptance of all or part of offer
If you propose to accept all or part of an offer and you are not legally represented, it will be
referred for independent legal review by the Independent Panel before it is accepted.
The Independent Panel’s remit in such cases is to ensure that the offer which you propose
to accept is reasonable and the Independent Panel shall not undertake a full assessment of
the claim.
Once
e the parties have agreed in writing on an amount of compensation for some or all
heads of claim; or
e the Independent Panel has issued a final assessment and the you have not referred
it for exceptional review within 15 working days; or
«the Reviewer has issued a decision
DBT will pay you any elements which are agreed or determined by the Independent Panel or
the Reviewer.
Claim outcome
The Scheme will present the claim outcome to you in a clear, succinct manner, setting out
information sufficient to allow you to understand the basis for the conclusion reached by the
Scheme in respect of each type of loss. Copies of the key supporting documentation relied
upon will be available to you.
Transparency of progress of the scheme
Information about the progress of the scheme will be published each month on the gov.uk
website. It will include statistics about the claims submitted, offers made and acceptances,
as well as the total amounts paid.
Dentons will convene regular meetings involving your legal advisor and, separately, DBT, to
identify and resolve any common issues relating to the process.
4. What are the Key Principles?
4.1.
4.1.1.
Fairness
The central goal of the Scheme is to deliver compensation to eligible postmasters that is full
and fair, restoring postmasters back into the position they would have been in had it not
been for the Horizon-related actions of the Post Office.
4.2.
4.2.1.
4.2.4,
4.3.
4.3.1.
4.3.2.
4.3.4,
4.3.5.
4.4,
44.1.
4.4.2.
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Burden of Proof
The Scheme will decide on the balance of probabilities (i.e. a greater than 50% likelihood)
whether (a) the loss was incurred and (b) that the cause of the loss was due to a Horizon
Shortfall.
It is therefore important that you provide as much relevant evidence as possible to support
your claim. If you are unable to provide supporting evidence, your claim will still be
considered and could be accepted if the Scheme considers it to be fair in the circumstances.
Claims which are supported by evidence are more likely to be successful. Guidance on how
best to evidence any potential claims for Consequential Loss is set out further below.
Greater weight will be attached to:
a) contemporaneous evidence (documents created at or near the time of the loss); and
b) factual evidence that is undisputed and/or verifiable.
A shortfall will be presumed to have been a Horizon Shortfall where a) there is evidence that
the shortfall in question existed and was paid; and b) there is no evidence that the shortfall
was caused by something other than a potential issue with Horizon.
Taxation
Government has enacted secondary legislation, the legal effect of which is that no income
tax, capital gains tax, national insurance contributions or VAT will be payable at law by any
party in respect of any payment (or any part of a payment). Legislation was also enacted
from 9 October 2023 to relieve payments from inheritance tax.
Your claimed losses should be quantified net, i.e. after the deduction of the tax which would
have been due at the time. This is to put you back into the same after-tax position you
would have been in had there been no breach. If you are unable to work out the net
calculation in your application form, you should state that your claim has been made gross
of tax and DBT will make the relevant after-tax deductions.
If you would like a tax expert to help you with the calculations, the Scheme will cover the
reasonable legal cost of up to £1,000. This request should be facilitated through your legal
advisor.
Interest applied to claims will not be subject to any tax deductions.
HM Revenue and Customs will not collect any income tax, capital gains tax, National
Insurance contributions, inheritance tax or VAT which may have been due in respect of any
payment (or any part of a payment).
Established legal principles
In considering a claim for any Consequential Loss, the Scheme will apply the findings in the
Commons Issues Judgment and the Horizon Issues Judgment. In making an assessment on
whether any consequential loss claimed is on the balance of probabilities, attributable to a
Horizon Shortfall, the Scheme will consider:
a) Causation
The Horizon Shortfall must have caused the Consequential Loss (i.e. the Consequential Loss
would not have happened but for the Horizon Shortfall). If you would have found yourself in
the same position in any event, irrespective of the Horizon Shortfall, the Scheme will not be
4.4.3.
44.4.
44.5.
45.
4.5.1.
4.6.
4.6.1.
4.6.4.
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able to conclude that the Horizon Shortfall caused the Consequential Losses you may have
suffered.
b) Remoteness
The Consequential Loss must not be too remote (i.e. the Consequential Loss must have been
reasonably foreseeable at the time of the Horizon Shortfall).
c) Mitigation
The Scheme will consider the extent to which you did or could have reasonably mitigated
the Consequential Loss.
d) Quantum
The object of the assessment will be, so far as the award of a sum of money can do so, toput
you into the position that you would have been in but for the Horizon Shortfall.
e) Double Recovery
You cannot recover the same loss twice. The Scheme will assess if any losses overlap with
others. Account will also be taken of any payments received in the Initial Complaint Review
and Mediation Scheme, under the 2019 Settlement (after the deduction of legal and funder
costs), or under the Scheme (for example, interim payments).
Please note that the above is intended as a guide only; it is not an exhaustive list of the legal
principles that may be applicable to any particular claim for Consequential Loss. The
application of the above principles will be fact-specific and will depend on your
circumstances.
Limitation
Many eligible claims will relate to Shortfall Losses and Consequential Losses suffered a
significant number of years ago. In order to draw a line under the issues caused by previous
versions of Horizon and treat postmasters who have been affected fairly, the Scheme will
not apply the laws of limitation or time bar in its assessment of the Shortfall Losses or
Consequential Losses.
Interest
Compound interest will be applied in relation to shortfall claims at a standard rate of 3.45%,
consistent with the approach taken on the Horizon Shortfall Scheme. You do not need to
calculate the interest in your application form. DBT will apply interest to every offer made.
For Horizon Shortfalls, interest will be applied from the date of payment, where you and/or
Post Office records are able to identify a single repayment date.
Where Horizon Shortfalls have been repaid over time, interest will run from the mid-point of
repayment.
Compound interest will be applied in respect of most consequential losses. There may be
certain cases where the facts of the case mean that it is not appropriate for compound
interest to be applied. For the following heads of loss, it is less likely that you will have been
denied the use of money. Therefore, for the following heads of loss, it is less likely that
compound interest would be recoverable:
© Reduction in capital value
4.6.5.
4.6.6.
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e Stigma / Damage to reputation
e Malicious prosecution (civil and criminal)
e Harassment
For suspension pay awards, interest will generally apply from the mid-point of suspension.
For loss of earnings awards following termination/resignation, interest will generally apply
as follows:
e For amounts offered in respect of the contractual notice period, interest is to be
calculated from the midpoint of the notice period.
e Where the Scheme offers a Notional Compensation Amount (outlined in paragraphs
5.2.5-5.2.6,) interest will ordinarily run from the date when the contractual notice
period expired or would have expired.
For other heads of loss, interest will generally run from the date when the relevant loss was
incurred, or your cause of action occurred (if a particular date can be identified). If no
particular date can be identified, a suitable date will be used based on the information which
is available.
5. What can I claim?
5.1
5.1.1,
§.1.2.
5.2.
5.2.1.
5.2.2.
a)
b)
q)
e)
f)
Consequential Loss
There is no exhaustive list of the types of loss that you can claim as Consequential Losses
(assuming they meet the applicable legal tests and noting that additional losses claimed
must be clearly linked back to a Horizon Shortfall); however, certain examples are detailed
below along with examples of the types of evidence that you should provide to support your
claims for Consequential Loss.
Alllosses should be quantified net of the tax which would have been payable at the time as
outlined in section 5.2.
Loss of earnings
This may relate to loss of earnings during a period when you were suspended or where your
contract with Post Office was wrongfully terminated or you were forced to resign because of
a Horizon Shortfall.
This will require evidence that you were suspended, were forced to resign or had your
contract terminated without sufficient notice because of a Horizon Shortfall. The Scheme
will ask the Post Office to take reasonable steps to identify any relevant information from its
own records, but you should provide any documentation which you hold evidencing your
suspension, forced resignation or termination related losses, for example:
suspension letter;
reinstatement letter;
termination letter;
forced resignation related correspondence;
remuneration information for the period of suspension and the period before/after the
suspension;
contemporaneous correspondence between you and Post Office;
8)
h)
k)
5.2.4.
5.2.5.
5.2.7.
5.3.
4
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an explanation or other evidence as to why your contract was wrongfully terminated or you
were forced to resign and that otherwise you would have continued as a postmaster;
in respect of termination, an explanation as to why the notice given to you by Post Office
was insufficient;
your average monthly expenses in running the Post Office branch for the period before the
suspension, termination or forced resignation;
if you subsequently obtained employment or earned an income following your suspension
and/or termination or forced resignation, confirmation of the dates and details of the
income earned; and
if you subsequently received employment benefits following your suspension and/or
termination or forced resignation, confirmation of the dates and details of payments
received.
You and your legal advisor should demonstrate what you consider most likely to have
happened to your earnings but for the alleged wrongful termination by Post Office of your
contract or your forced resignation.
Cases will be considered on a case-by case basis, taking into account the extent of evidence
presented by you and having regard to what would have happened to your earnings if the
Post Office had exercised any right to terminate the contract lawfully at the earliest possible
opportunity in a manner which would be least burdensome to it (the “minimum
performance rule”).
That will involve consideration of the amount that would have been paid to you had you left
under the Network Transformation Programme and received a “Leaver’s Payment”. In the
context of Network Transformation Programme, this payment was the equivalent to 26
months’ Post Office remuneration plus the Post Office remuneration that would have been
received in the minimum notice period for the contract (typically 3 or 6 months depending
onacontract.)
In the context of the Scheme, the above calculation will not be applied mechanically: it is
neither a cap nor a minimum. In the interest of fairness and consistency, DBT may make
offers above or below 26 months’ Post Office remuneration should the facts of your case
warrant a variation. For example, a lower offer might be appropriate if you had only been in
post a short amount of time or were close to retiring. Offers may also depend on your
personal circumstances following the contract termination or forced resignation (e.g. if you
sought and found alternative employment.)
For complex calculations you may require assistance of a forensic accountant. This should be
facilitated through your legal advisor, and requests for expert evidence should be submitted
to DBT in accordance with the published Tariff on Reasonable Legal Costs’.
Loss of profits
This may relate to loss of profits from the Post Office branch or any retail shop which you
owned which was associated with the Post Office branch.
https://assets. publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1135822
/glo-tariff-reasonable-costs.pdf
5.4.3.
5.4.4.
5.4.6.
5.4.7.
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This will require evidence to show how the profits of the business were impacted by the
Horizon Shortfall. You should provide all documentation you hold demonstrating the profits
made by the business prior to and following the Horizon Shortfall, taking into account the
cost of any additional measures that had to be put in place because of the Horizon Shortfall,
for example:
¢ bank statements;
© accounts;
e tax returns;
© cash flows (historical and forecast);
¢ business plans (historical and forecast);
*® management information (historical and forecast); and
e relevant correspondence.
You should provide a calculation showing how the amount being claimed has been
quantified. You should demonstrate and evidence how long you would have continued to
operate the business profitably had your contract been lawfully terminated by Post Office
giving appropriate notice. Where you are unable to show that you could have operated the
business profitably beyond expiry of the appropriate notice period, damages will usually be
confined to the loss of profits suffered during the relevant notice period.
Inflation will be applied to loss of retail profits using CPI.
Loss of property or other assets
If, as the result of a Horizon Shortfall, you were forced to dispose of an asset (e.g. a
property) at an undervalue and/or the asset would have been retained and would have a
higher value at a later date, a claim for Consequential Loss may be available.
In order for such a claim to be successful, you will need to provide evidence that the Horizon
Shortfall (as opposed to other factors) led to the disposal, as well as evidence of the value of
the loss suffered as a result, for example:
® anexplanation as to why the asset was sold;
e relevant correspondence and documents relating to the purchase and sale of the
asset;
© evidence of the value of the asset (historic and current); and
* any relevant accounting documentation.
Please provide a calculation showing how the amount being claimed has been quantified.
For property valuations, the Nationwide House Price Index can be used for simple valuations
to estimate the current value of a property and HM Land Registry can be used for historical
sales prices and ownership details, where available.
Similar valuations may be available online for other assets, either historical or by way of
current comparator sale prices.
Appropriate adjustments should be made for inflation.
For complex valuations you may require expert property valuation. This should be facilitated
through your legal advisor, and requests for expert evidence should be submitted to DBT in
accordance with the published tariff on reasonable legal costs.
5.5.
5.5.2.
5.5.4.
5.6.
5.6.1.
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Loss of opportunity/loss of chance
You may be able to claim a Consequential Loss for the loss of an opportunity to pursue a
course of action that, but for the Horizon Shortfall, could have resulted in financial gain. For
example, expanding the business or making other investments.
For these claims, it will be necessary to submit evidence to demonstrate a specific
opportunity or course of action that you were aware of at the time and had intended to
pursue but was prevented from doing so due to the Horizon Shortfall.
This will require evidence that you were aware of the opportunity at the time it arose and
intended to pursue it. Claims that speculate (without supporting evidence) how money put
towards repaying a Horizon Shortfall could have been invested or what may have been done
but for the Horizon Shortfall are unlikely to succeed. Any claims should therefore be
accompanied by evidence such as the following:
e evidence that an opportunity to invest existed;
e evidence that you were actively considering the investment opportunity and that it
was likely to be pursued;
* evidence demonstrating that your inability to invest was caused by the Horizon
Shortfall (rather than by other intervening events or the fact that you would not
have had the funds to avail themselves of the opportunity);
e evidence of what your financial position would have been but for the Horizon
Shortfall;
e expected costs and timeframe for investment; and
e evidence of progress (if any) on the investment.
You need to provide a calculation showing how the amount being claimed has been
quantified.
The Scheme will assess your claim by forming a view on the likelihood of success. For
example, if you claim £50k for a lost investment and upon review of the evidence it judges
that there would have been a 20% likelihood of success, you would be offered £10k in
damages.
Penalties/general or increased costs of financing
Penalties or general/increased costs of financing, as a result of the Horizon Shortfall, may be
recoverable (e.g. additional interest or loan arrangement fees.) You should explain how the
Horizon Shortfall led to the increased costs and provide any evidence you have to support
the level of costs incurred.
This will require evidence of the purpose of the financing and what your financial position
would have been but for the Horizon Shortfall. If you claim that the finance was taken out at
less advantageous rates than it would otherwise have been as a result of the Horizon
Shortfall you should provide any supporting evidence of when the finance was taken out and
that you had been turned down for other products at more favourable rates.
You should provide a calculation showing how the amount being claimed has been
quantified.
5.7.
5.7.1.
5.7.2.
5.7.4.
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Bankruptcy/insolvency
Losses suffered if you underwent bankruptcy or insolvency proceedings as a result of a
Horizon Shortfall may be claimed as a Consequential Loss.
For such a claim to be successful you will have to provide evidence that you were
bankrupted/declared insolvent (as appropriate), the value of the loss claimed and that the
bankruptcy/insolvency was due to the Horizon Shortfall (rather than other intervening
events/general financial hardship/other factors).
The types of documents that you should provide with your claim if possible include the
following:
© copy of bankruptcy order or IVA documentation;
e copy of notice of bankruptcy in appropriate newspaper;
¢ — financial/accounting evidence to demonstrate that the Horizon Shortfall was the
reason for the bankruptcy/insolvency e.
- bank statements;
- accounts;
- cash flows (historical and forecast);
- _ business plans (historical and forecast);
- management information (historical and forecast);
e details of all creditors at the time of bankruptcy/insolvency; and
© if the bankruptcy/insolvency process has concluded, details of payments made to
creditors.
If you were made bankrupt as a result of the Horizon Shortfall, you may be able to claim for:
¢ Diminution in value to your estate or assets because of the bankruptcy.
e Other consequential pecuniary loss, e.g. if you suffered a financial loss as a result of
harm to your credit and reputation by reason of bankruptcy.
© General damages (anticipated to be in the range of £20,000 to £60,000).
The expenses of the bankruptcy (including annulment costs already incurred).
e The statutory interest payable to your creditors.
Where Post Office was the original petitioning creditor in your bankruptcy, aggravated
damages may also be claimed. These are anticipated to be in the range of £10,000 to
£25,000.
These ranges are not limits for what can be claimed under the Scheme, but can be used as
an indicative guide to help you and your lawyer formulate your claim. Each case will be
decided on its merits.
You should provide a calculation showing how the amount being claimed has been
quantified.
If you would like to seek an annulment, the Scheme will cover the reasonable legal fees
associated with you doing so, e.g. court fees. This request should be facilitated by your legal
advisor. You can provide an estimate of the costs in your application form, or if after the
5.8.
5.8.1.
5.8.2.
5.8.3.
5.8.4.
5.9.
5.9.1.
5.9.5.
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submission of your application form, by emailing
GRO. I
glocompensation:
Legal and professional fees
Fees incurred in relation to dealing with a Horizon Shortfall at the time (e.g. the cost of
defending legal proceedings or professional advice about restructuring the postmaster’s
business) may be recoverable.
Please note that this is separate to any legal and professional fees you have incurred in
bringing an application to the Scheme.
In order to claim these fees, you should explain and where possible provide evidence of the
following:
why and when the professional was engaged (noting that you should avoid providing
any legal advice you have received unless you confirm you are happy to waive
privilege over that legal advice);
e details of the engagement (including whether the engagement was by the you or a
third party); and
e the professional’s fees being incurred and paid by the you (e.g. invoice/receipt).
You should provide a calculation showing how the amount being claimed has been
quantified.
Stigma/damage to reputation
Where you have incurred a financial loss as a result of damage to your reputation as a result
of a Horizon Shortfall, you may be able to claim Consequential Loss.
You should explain what action taken by Post Office, in light of the Horizon Shortfall,
damaged your reputation, how those matters became known to others and why the damage
to your reputation caused financial loss.
The types of financial loss caused by damage to reputation could include:
* evidence that prospective employers would not hire you as a result of the Horizon
Shortfall; and
e evidence that customers stopped supporting your business as a result of the Horizon
Shortfall.
If you claim that your business suffered a downturn in revenue as a result of the damage to
your reputation, you should try to provide copies of business accounts before and after the
Horizon Shortfall became known to others in the community.
You may also claim for the non-financial loss you have suffered as a result of damage to your
reputation. Offers for non-financial losses for stigma/damage to reputation will generally to
be within the range of £1,000 to £10,000, although any offers will be determined according
to the relevant facts on a case-by-case basis. The Scheme will look to assess offers by
reference to the set of bands:
Band 1 - Moderate impact/loss — Range - £1,000 - £2,500. Description: Distress and
humiliation and / or damage to your self-esteem and confidence caused by general
loss of reputation in a wider or local community.
5.10.
5.10.1.
5.10.2.
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Band 2 - Serious impact/loss — Range - £2,501 - £7,500. Description: Distress caused
by loss of reputation in a local community, which may include being subject of gossip/
rumours and situations, where direct comments were made to you or your family
(short of verbal abuse).
Band 3 - Severe impact/loss — Range - £7,501-£10,000. Description: Distress caused
by significant loss of reputation in a local community, which may include adverse
media reports, loss of community positions (e.g. Councillor, local charity or sports
club leader), being subject of verbal abuse (or verbal abuse directed at family
members), feeling of being forced to move out of a local area, being subject of
gossip, which took years to be forgotten, being unable to explain the position to the
community as a result of Post Office’s reliance on confidentiality duties.
Band 4 - Very severe impact/loss — Range — above £10,000. Exceptionally
distressing circumstances — for instance covering an exceptionally prolonged period
or an exceptional range of causes.
These bands are not limits for what can be claimed under the Scheme, but can be used as an
indicative guide to help you and your lawyer formulate your claim. Each case will be decided
on its merits in the round, guided by considerations of fairness. The Scheme expects there
will be some cases where the facts of the case demand awards significantly higher than the
upper figure for the top band.
You should provide a calculation showing how the amount being claimed has been
quantified.
Personal injury
You may be able to claim Consequential Losses for personal injury suffered as a result of a
Horizon Shortfall. Personal injury can include physical injuries as well as psychiatric harm.
This will require evidence that the personal injury was caused by the Horizon Shortfall. You
should provide the following information when making a claim for personal
injury/harassment:
a) a detailed description of your injury including (i) the symptoms you have
experienced; (ii) medical treatment you have received; (iii) any expenses/financial
losses you have suffered; and (iv) the effect of your injury;
b) a letter from your GP (or from another medical professional who has treated them)
setting out details of matters including the nature and potential cause(s) of the
injury;
c) medical notes and records including copies of the notes and records kept by your
GP, any other medical professional who has treated you and any hospital to which
you have been admitted. You should only provide records that are relevant to the
injury for which you are bringing a claim;
d) other relevant information, for example where you are seeking to recover for
financial losses (e.g. medical expenses and/or loss of earnings) you should include
documents in support of those claims.
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5.10.3. Amounts will be awarded in line with the Judicial College guidelines for personal injury®.
Your lawyer will be able to access these guidelines. You should set out the amounts being
claimed with reference to these guidelines.
5.10.4. If you do not wish to instruct a lawyer who specialises in personal injury to help you with
your claim, you should use the below as a guide for claims for psychiatric injury.
5.10.5. For complex claims you may require expert medical evidence. This should be facilitated
through your legal advisor, and requests for expert evidence should be submitted to DBT in
accordance with the published tariff on reasonable legal costs.
5.10.6. The factors to be taken into account in valuing claims of this nature are as follows:
a) your ability to cope with life, education, and work;
b) the effect on your relationships with family, friends, and those with who you come
into contact with;
c) the extent to which treatment would be successful;
d) future vulnerability;
e) prognosis; and
f) whether medical help has been sought.
Categories of severity
Value ranges
(a) Severe
In these cases the injured person will have marked problems with respect to factors
(i) to (iv) above and the prognosis will be very poor.
£54,830 to
£115,730
(b) Moderately Severe
In these cases there will be significant problems associated with factors (a) to (f)
above but the prognosis will be much more optimistic than in (a) above. While there
are awards which support both extremes of this bracket, the majority are
somewhere near the middle of the bracket. Cases of work-related stress resulting
in a permanent or long-standing disability preventing a return to comparable
employment would appear to come within this category.
£19,070 to
£54,830
(c) Moderate
While there may have been the sort of problems associated with factors (a) to (f)
above there will have been marked improvement as at the date of submission of
your claim and the prognosis will be good. Cases of work- related stress may fall
within this category if symptoms are not prolonged.
£5,860 to
£19,070
(d) Less Severe
The level of the award will take into consideration the length of the period of
disability and the extent to which daily activities and sleep were affected. Cases
falling short of a specific phobia or disorder such as travel anxiety when associated
with minor physical symptoms may be found in the Minor Injuries chapter.
£1,540 to
£5,860
5.11. Harassment
5.11.1. You may be able to claim Consequential Losses for the harassment you have suffered as a
result of a Horizon Shortfall.
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5.11.2. Harassment as defined in the Harassment Act 1997 means that the conduct of the Post
Office towards you was “unreasonable and oppressive,” i.e. which goes beyond the
boundaries of acceptable and reasonable conduct.
5.11.3. This will require evidence that the harassment was caused by the Horizon Shortfall. You
should provide evidence of the harassment, how often it occurred and what constituted the
harassment.
5.11.4. Offers for harassment will generally to be within the range of £2,500 to £30,000 (in respect
of non-pecuniary harm for alarm, fear, anxiety and distress,) although any offers will be
determined according to the relevant facts on a case-by-case basis. The Scheme will look to
assess offers by reference to the set of bands:
Band 1 - Moderate Band 2 - Serious impact/loss Band 3 - Severe impact/loss
impact/loss
Range - £2,500 - £5,000 Range - £5,001- £10,000 Range - £10,001-£30,000
Description: Description: Description:
Sustained and persistent I Oppressive and unacceptable I Invasive and/or very
communication from POL} conduct by POL in _ the I oppressive conduct by POL in
through letters and calls I investigation of the shortfalls, by I the investigation of the
regarding repayment of the I means of which it was intended to I shortfalls, by means of which
alleged shortfalls over a period I cause you distress, which may I it was intended to cause you
of time, by means of which it I include, for example, oppressive I distress and alarm, which may
was intended to cause you I and/or multiple interviews, house I include, for example, multiple
distress. searches and/or threats of further I and/or very oppressive
action including arrest and I interviews, multiple house
searches, threats of colleagues I searches or house searches
being interviewed, threats of I with seizure of personal items,
court action. Proceeds of Crime Act 2002
(“POCA”) proceedings, threats
of prosecution and prison.
5.11.5. These bands are not limits for what can be claimed under the Scheme, but can be used as an
indicative guide to help you and your lawyer formulate your claim. Each case will be decided
on its merits in the round, guided by considerations of fairness. The Scheme expects there
will be some cases where the facts of the case demand awards significantly higher than the
upper figure for the top band.
5.11.6. You should provide a calculation showing how the amount being claimed has been
quantified.
5.12. Distress and Inconvenience
5.12.1. The Scheme may offer discretionary awards for the Distress and Inconvenience caused to you
as a result of the Horizon Shortfall. This will be at the discretion of the Scheme and you should
therefore not claim for this loss in your application.
5.12.2. Distress and Inconvenience offers are expected to be within the range of £500 to £10,000,
although any offers will be determined according to the relevant facts on a case-by-case basis.
The Scheme will look to assess offers by reference to the set of bands:
Band 1 - £0 to £2,500;
Band 2 - £2,501 to £5,000;
5.12.3.
5.12.4.
§.12.5.
5.13.
5.13.1.
5.13.2.
5.13.3.
5.13.4.
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Band 3 - £5,001 to £7,500;
Band 4 - £7,501 to £10,000; and
Band 5 — in excess of £10,000, in exceptional cases.
Relevant factors to determining where along that scale your case will fall may include: (a) the
amount of money at stake; (b) the duration of the period this was an issue; (c) wasted
time/effort by, and inconvenience to you or your branch in dealing with Horizon Shortfalls;
and (d) other factors, such as allegations of dishonesty made against you and/or any public
humiliation you suffered.
Offers for Distress and Inconvenience will take into account any potential double recovery
with offers made to you under other heads of loss, e.g. stigma.
These bands are not limits for what can be awarded under the Scheme, and each case will
be decided on its merits.
Malicious Prosecution (criminal)
If you were prosecuted but not convicted for an alleged loss, e.g. Horizon Shortfall, or you
received a caution as a result of the Horizon Shortfall, you may be able to claim for malicious
prosecution.
If you were prosecuted but not convicted, you should provide as much evidence and
information as possible to show that:
a) You were ‘prosecuted’ by the Post Office;
b) The prosecution was determined in your favour;
c) The prosecution was ‘without reasonable and proper cause’;
d) The prosecution was ‘malicious,’ i.e. actuated by ‘malice’ on the part of Post Office; and
e) The prosecution has resulted in actionable damage.
If you were prosecuted but not convicted or received a caution, you may be able to claim
for:
a) Pecuniary losses (such as loss of earnings, legal costs etc).
b) Mental distress and damage to reputation (anticipated to be in the range of £10,000-
£40,000).
c) Loss of liberty (anticipated to be in the range of £3,000-£5,000 where you were held for
more than a day, or less where you were held for a matter of hours).
d) Personal Injury (see section 5.10).
e) Loss of congenial employment (anticipated to be in the rage of £5,000-£10,000).
f) Aggravated damages (anticipated to be in the rage of £10,000-£35,000).
g) Exemplary damages of £75,000.
Each case will be considered on its own facts. With the exception of exemplary damages,
these ranges are not a floor or ceiling to what offer the Scheme may conclude it is fair to
recommend in any particular case. Each case will be decided on its merits.
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5.14. Pension losses
5.14.1.
5.14.2.
5.14.3.
5.14.4.
If you suffered a loss of pension investments as a result of the Horizon Shortfall, you may be
able to make a claim for the loss of the tax break you would have received.
For example, if you paid £80 into your pension, being £100 with pension relief, losses will be
awarded for the £20 tax relief you would have received.
You should provide a calculation showing how the amount being claimed has been
quantified and provide evidence to support your claim.
The types of documents that you should provide with your claim (if you can) include the
following:
a)
b)
c)
qd)
e)
f)
Other employer contributory pension scheme documents, such as membership
documents (showing your chosen investment profile ), quarterly investment reports and
annual statements, both pre-dating and post-dating your termination and prosecution.
Private pension scheme documents such as membership documents (showing your
chosen investment profile ), quarterly investment reports and annual, statements, both
pre-dating and post-dating their termination and prosecution.
Wage and salary slips, and tax documents, both pre-dating and post-dating their
termination and prosecution, which contain information such as deductions from salary
and matching employer contributions paid to a pension scheme.
Any other documentary evidence of pension scheme participation and contributions,
such as correspondence with a financial advisor, or a pensions and investment advisor.
Any documents that evidence your entitlement to auto-enrolment in a mandatory
workplace pension scheme, and details of any opt-out.
Any documents that evidence your intention to subsequently join and contribute to a
pension scheme in the counterfactual scenario e.g. retirement planning documents.