Referral of the proposed (Remediation Unit and Horizon IT Inquiry) subsidy to Post Office Limited by the Department for Business and Trade
Source: gov.uk (2025-03-26)

The Subsidy Advice Unit (SAU) has published a report providing advice to the Department for Business and Trade (DBT) concerning its proposed subsidy to Post Office Limited.

Administrative timetable

Final report

26 March 2025: The SAU has published its report providing advice to the Department for Business and Trade (DBT) concerning its proposed (Remediation Unit and Horizon IT Inquiry) subsidy to Post Office Limited. The report sets out the SAU’s evaluation of DBT’s Assessment of Compliance of its proposed subsidy with the requirements set out in the Subsidy Control Act 2022.
- Final report (https://www.gov.uk/government/publications/report-on-the-proposed-remediation-unit-and-horizon-it-inquiry-subsidy-to-post-office-limited-by-the-department-for-business-and-trade) (26.3.25)
Request from DBT

13 February 2025: The SAU has accepted a request for a report from DBT concerning the proposed subsidy to Post Office Limited. This request relates to a Subsidy of Particular Interest.

The SAU will prepare a report, which will provide an evaluation of DBT’s Assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the subsidy provided by DBT

Post Office Limited is a Public Non-Financial Corporation (Public Corporation). It was constituted under the 2000 and 2011 Postal Services Acts and is wholly owned by the Secretary of State for Business and Trade. Through Post Office Limited, government ensures the provision of a network of Post Office branches, delivering essential services to customers across the UK. Government provides Post Office Limited with subsidy and investment funding and has, since the 2021 to 2022 Financial Year, also provided funding to enable Post Office Limited to manage financial liabilities arising from the Horizon IT scandal.

DBT is proposing to award Post Office a grant of up to £57.9 million to enable the company to continue take action in response to the Horizon IT scandal in Financial Year 2025 to 2026. Specifically, this subsidy will allow Post Office Limited to continue to meet the operational costs of:

delivering financial redress to postmasters affected by the Horizon scandal and undertaking associated remediation activities

continue to participate in the Post Office Horizon IT Inquiry

Costs associated with the remediation activities, and of taking part in the Post Office Horizon IT Inquiry, have increased significantly in recent years and the requirements placed on Post Office by Government in relation to the Remediation Unit have changed. Government considers that it is important that Post Office Limited continues to deliver financial redress and participate effectively in the Inquiry as it reaches its conclusion. Government is therefore proposing to provide additional financial support to the company to ensure it can continue these activities.

DBT, which is also the sole shareholder of Post Office Limited, will continue to provide oversight of the company to ensure that financial redress is delivered quickly and effectively to affected postmasters and that operational costs are well managed. The subsidy will be ringfenced for the purposes outlined above and may not be used for supporting other activities undertaken by Post Office Limited. The grant funding will cover the period of Financial Year 2025 to 2026 only. Grant payments will be released on a reimbursement basis and will be subject to regular reporting from Post Office Limited.

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the proposed subsidy to Post Office Limited, please send your comments on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Please send your submissions to us at xxx@xxx.xx (mailto:xxx@xxx.xx) copying the public authority: xxx@xxx.xx (mailto:xxx@xxx.xx).

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

The SAU will only take your submission into account if it can be shared with DBT. The SAU will send a copy of your submission to DBT together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to make or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with DBT using the email address provided above.

The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.

For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Contacts
- CMA press team: xx-xxxx-xxxx or xxx@xxx.xx (mailto:xxx@xxx.xx)