Watchdog clears Post Office Horizon scandal subsidy

"The Subsidy Advice Unit (SAU), part of the Competition and Markets Authority (CMA), has reported a request from the Department for Business and Trade (DBT) seeking advice on its plan to give the Post Office £37.4 million in fiscal 2026/27 to continue to take action in response to the Horizon IT scandal and another £104.4 million to settle a tax liability under IR35."

"Following the request made in February, the SAU said the DBT has 'satisfied itself that the circumstances giving rise to the need for... a further subsidy were unforeseen and were not solely caused by [the Post Office].'"

"The Post Office has received funding from the government since 2023 to enable it to cover the costs of running its Remediation Unit and Inquiry response team. The Remediation Unit is responsible for delivering redress to subpostmasters affected by the Horizon IT scandal and other operational failures."

"From 1999 until 2015, around 736 subpostmasters were wrongfully prosecuted and convicted over Horizon errors, devastating lives in the process."

The Subsidy Advice Unit, part of the Competition and Markets Authority, has provided conditional approval for the Department for Business and Trade's plan to allocate £141.8 million to the Post Office. This comprises £37.4 million for fiscal 2026/27 to address ongoing Horizon IT scandal remediation and £104.4 million to settle an IR35 tax liability. The SAU determined that circumstances necessitating the subsidy were unforeseen and not solely caused by the Post Office. However, the SAU does not directly approve subsidies or assess legal compliance; public authorities retain responsibility for subsidy decisions. The Post Office has received government funding since 2023 to support its Remediation Unit and Inquiry response team, which address redress for subpostmasters affected by the Horizon system failures.

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