Guidance

Horizon Shortfall Scheme Appeals: Independent Panel terms of reference

Published 26 February 2026

In September 2024, the government announced the Horizon Shortfall Scheme Appeals (HSSA) process (the process). The process is aimed at providing an independent avenue for Horizon Shortfall Scheme (HSS) applicants to challenge their initial compensation offers in HSS.

The central goal and the overarching principle of the process is to ensure that eligible HSS applicants have the opportunity to receive redress that is full and fair and restores them to the position they would have been in had it not been for the Horizon-related actions of Post Office Limited (POL).

The process is being run and delivered by the Department for Business and Trade (DBT). The principles governing the process are described in its Guidance and Principles (the guidance) , which incorporate by reference the HSS Consequential Loss Principles and Guidance (opens as a PDF). The guidance and these terms of reference (ToR) together form the scheme documents.

Central goal

The HSSA Independent Panel (the panel) will apply its independent judgement to individual cases. It will apply the guidance in accordance with the central goal of achieving full and fair compensation.

The panel will aim to assess eligible appeals in a timely manner. It will take into account the need to ensure sufficient care and consideration is given to each appeal to provide a fair assessment.

Composition and governance

Membership

Dentons will have responsibility for the appointment of panel members and will identify and instruct the panel.

The pool of panel members will include:

• legal specialists (for example, a senior barrister such as a KC)
• forensic accounting specialists
• retail specialists
• medical specialists

Given the volume of potential appeals, it may be necessary to convene multiple panels. All panels will meet the ToR as set out here.

Should multiple panels be required, panel members will satisfy the specialisations described in the pool of panel members list.

Quorum and decision-making

Subject to the following 3 paragraphs, a panel meeting will only happen when a minimum of 3 panel members are present (in person or remotely). These 3 members will include at least a combination of a legal specialist, a forensic accounting specialist and either a retail specialist or a medical specialist, depending on the specifics of the case.

If Dentons determines that the expertise of fewer than 3 panel members is required to make a panel decision, such meetings may happen with fewer than 3 panel members.

A determination as to whether the expertise of fewer than 3 panel members is required will be taken as follows:

1. Dentons will consult the panel members they propose for the panel about whether the expertise of other panel members is required.
2. If, after consultation with the panel members, Dentons determines that the expertise of fewer than 3 panel members is required to make a panel decision, they will identify the panel members that will be on the panel.
3. Dentons will notify the appellant and DBT of its intention to refer the appeal to fewer than 3 panel members and of the expertise of the planned panel members. Dentons will also provide the appellant and DBT with a reasonable opportunity to object.

In the event that either the appellant or DBT objects to the appeal being referred to fewer than 3 panel members, Dentons will instruct a legal panel member to make a decision as to the composition of the panel. This legal panel member will not be a panel member who was consulted in step 1 of the process.

The panel will use its best endeavours to reach a unanimous agreement of the compensation to be awarded to each appellant. They will do this by discussing their views and sharing their rationales for their individual opinions. If a unanimous agreement cannot be reached, the decision of the majority of the panel will be the outcome.

If a majority decision cannot be reached as to the outcome (including an outcome of no compensation) for any head of loss within an appeal, the amount of the outcome will be the simple average of each panel member’s decision about the relevant amount of compensation.

Apellant’s oral submissions and written statement

Appellants must file written submissions. This is outlined in more detail under the ‘Meetings’ heading.

As well as written submissions, appellants have the right to make oral submissions to the panel or single member.

The single member is the term used to describe a panel made up of only one panel member. There’s more information about single members in the ‘Single panel member referrals’ section.

Oral submissions should not exceed one hour and will be made remotely. They will happen before the panel meeting or before the date on which the single member will provide their decision paper to Dentons. The right to make oral submissions can be exercised by either the appellant themself or their legal representative.

These oral submissions should be limited to the appellant’s specific appeal. The panel or single member should disregard any wider issues raised by the appellant in relation to the process, unless they may have direct relevance to the appellant’s appeal.

If the appellant does not wish to make oral submissions to the panel or single member, they may submit a written statement for consideration by the panel or single member. They can do this even if the appellant’s legal representative will be making oral submissions on their behalf.

This written statement should be limited to 5 pages in length in minimum 12-point font. It should be submitted to Dentons with the appellant’s written submissions.

Meetings

Panel meetings are to be convened by Dentons’ Panel and Reviewer Liaison (the P and R Liaison). The P and R Liason will also have responsibility for the administrative arrangements, including sending meeting invitations and providing meeting room facilities as required.

The panel will be provided with the necessary supporting materials to consider the appeal at least 12 working days before the panel meeting. The supporting materials will not include:

• the appellant’s written submissions
• DBT’s written submissions
• the appellant’s written statement, if there is one

Once they receive them, Dentons will provide the panel with the written submissions (which should be limited to 3 pages in length in minimum 12-point font) and the written statement of the appellant (if such a statement is provided). This will happen at least 7 working days before the panel meeting.

Notice of the panel meeting will be given to the relevant panel members at least 12 working days before the panel meeting.

Panel meetings will be held remotely by video call or other electronic means, so long as all participants can contribute to the meeting. The panel may meet in person in exceptional circumstances. If any panel member wishes the meeting to be held in person, they must send a written request to Dentons 5 working days before the meeting.

Dentons will consider any request from an attending panel member to hold the meeting in person and will decide the appropriateness of that request. This will include considering whether the panel members are able to make arrangements to comply with that request. The P and R Liaison will attend the panel meeting but will not contribute to the panel discussion.

In reviewing an appeal, the panel will follow the assessment of appeals process as set out at in the ‘Assessment of appeals’ section of this page.

At the conclusion of the panel meeting, the legal panel member must draft a decision paper detailing the panel’s decision (called the decision paper). The decision paper must set out the assessment and outcome and give reasons for the assessment for each head of loss, in accordance with the guidance.

The legal panel member must obtain comments on and approval of the decision paper from the other panel members.

The legal panel member will then send the decision paper to the P and R Liaison within 10 working days of the panel meeting taking place. The P and R Liaison will then issue the decision paper to the parties.

Single panel member referrals

Dentons will follow the numbered steps set out in the ‘Quorum and decision-making’ section in cases where they instruct a single panel member (called the single member).

When there is a single member, these ToR apply, except for the ‘Meetings’ section and the information about requesting further information in the ‘Assessment of appeals’ section. In the ‘Assessment of appeals’ section, references to the panel include the single member, and references to the decision paper include the single member decision paper.

The single member will be provided with the necessary supporting materials to consider the appeal at least 12 working days before the date on which they will provide their written decision paper (called the single member decision paper) to Dentons. The supporting material will not include:

• written submissions prepared by the appellant and DBT
• the appellant’s written statement, if there is one

Once they receive them, Dentons will provide the single member with the written submissions of the parties (which should be limited to 3 pages in length in minimum 12-point font) and the written statement of the appellant (if such a statement is provided).

In reviewing the appeal, the single member will follow the assessment of appeals process set out in the following section.

If the single member considers that further evidence is necessary to enable them to reach a decision, they can request further evidence from the appellant or DBT (as applicable). Further evidence may include expert evidence or any other available evidence.

The instruction of any additional expert evidence will be carried out in accordance with the agreed Tariff of Reasonable Legal Costs . The P and R Liaison will inform the appellant and DBT of the single member’s decision and will request that further evidence is provided by a specified date.

If the single member considers that further evidence is necessary, the deadline for the single member decision paper will be extended pending receipt of further evidence or the expiry of the deadline for providing this information.

The single member will send their single member decision paper to the P and R Liaison within 10 working days of whichever is later:

• the receipt of the written submissions and the written statement of the appellant (if such a statement is provided)
• the hearing of the appellant’s or their legal representative’s oral submissions (where the appellant or their legal representative has opted to make oral submissions)

The single member decision paper must set out the assessment and outcome. It must also give reasons for the assessment for each head of loss, in accordance with the guidance. On receipt of the single member decision paper, the P and R Liaison will issue it to the appellant and DBT.

Assessment of appeals

The panel will assess any appeal that is presented to the panel by the P and R Liaison.

When an appeal is referred to the panel, the P and R Liaison will summarise the parties’ positions in a user-friendly format. The panel will also receive a copy of the appellant’s application form and other supporting materials (as explained in the ‘Meetings’ section).

In assessing appeals, the panel will conduct a fresh assessment of the appellant’s claim. The panel will be guided by considerations of fairness. They will apply the principles set out in the guidance, in accordance with the overriding objective of achieving full and fair compensation.

In assessing an appeal, the panel may consider previous panel assessments made in other appeals, to the extent that the panel considers that they are relevant to the appeal under consideration. The P and R Liaison will ensure that the panel is provided with an anonymised summary of other panel determinations. Where the panel has considered previous panel assessments in other appeals, this will be recorded in the decision paper. 

In assessing an appeal, the panel may consider scheme-wide determinations, to the extent that they consider such scheme-wide determinations relevant to the appeal under consideration. These scheme-wide determinations cover both:

• previous written determinations of the HSSA Independent Reviewer
• findings or recommendations of the HSS independent Senior Lawyer

The P and R Liaison will ensure that the panel is provided with copies of scheme-wide determinations. Where the panel has considered a scheme-wide determination in its assessment of an appeal, this will be recorded in the decision paper. In the event of any inconsistency between a scheme-wide determination and the scheme documents, the scheme documents will prevail. If the panel considers that its assessment of an appeal is not consistent with a scheme-wide determination, it will promptly notify the P and R Liaison.

When assessing the compensation payable on the heads of loss in an appeal, the panel will assess those heads of loss where there is disagreement between the the appellant and DBT. The panel is not required to make any decision in respect of the compensation payable for any heads of loss which are agreed between the appellant and DBT. It does have the discretion to do so if it deems necessary.

The panel may only exercise that discretion for heads of loss which were both:

• appealed to DBT via HSSA
• agreed between the appellant and DBT prior to panel referral

To avoid any doubt, the panel may not consider or make any decision in relation to heads of loss that have not been appealed to DBT via HSSA.

If the panel considers that further evidence is necessary to enable it to reach a decision, the panel can request further evidence from the appellant or DBT (as applicable). Further evidence may include expert evidence or any other available evidence.

The instruction of any additional expert evidence will be carried out in accordance with the agreed Tariff of reasonable legal costs. The P and R Liaison will inform the appellant and DBT of the panel’s decision and will request that further evidence is provided by a specified date.

If the panel considers that further evidence is necessary, the deadline for their decision paper will be extended pending receipt of further evidence or the expiry of the deadline for providing this evidence.

If the panel meeting has already been scheduled when it is identified that further evidence is required, the panel meeting will be adjourned until after the further evidence has been received or after the deadline to provide the evidence has passed. Upon the adjournment of a panel meeting, the P and R Liaison will inform the appellant and DBT. If the deadline for providing further evidence has passed and no such evidence has been provided, the panel may proceed to attend a panel meeting and determine the relevant heads of loss in the absence of the evidence requested.

After receiving a decision paper or single member decision paper, DBT can request clarification from the panel or single member. DBT can do this before making its offer to ensure that it is not making payment where it does not have the funding powers to do so. To request clarification, DBT’s legal representatives may submit clarification questions to Dentons within 5 working days of receipt of the decision paper.

Dentons will determine whether the clarification questions are appropriate for referral to the panel or single member. For the avoidance of doubt, Dentons will not refer clarification questions to the panel or single member which include any submissions, comments or leading questions that put forward a particular position.

If Dentons refers clarification questions to the panel or single member, the panel or single member should provide a response as soon as possible.

Preliminary issue referrals

A preliminary issue is a decisive or potentially decisive issue that, once determined, is capable (or potentially capable) of:

• deciding liability on all or most disputed heads of loss
• enabling the appellant and DBT to settle the remainder of the appeal

An example of a preliminary issue is causation.

The appellant and DBT might not be able to reach agreement on certain heads of loss because DBT does not agree that Horizon Shortfalls caused the loss being claimed by the appellant.

If the issue of causation is referred to a member of the panel and the panel member determines the losses claimed by the appellant were caused by the Horizon Shortfalls experienced by the appellant, the appellant and DBT would be able to proceed with discussing settlement amounts.

The preliminary issue referrals process is a self-contained process. The provisions set out in the following sections do not apply to this process:

• quorum and decision-making
• appellant’s oral submissions and written statement
• meetings
• single panel member referrals

Preliminary issue referral requests can be made by the appellant or DBT. Dentons will determine if the appeal should be referred to a member of the panel (a referral). The panel member can then determine the preliminary issue.

Only Dentons can decide whether a referral should be made. If it thinks a referral should be made, Dentons will refer the claim to one member of the panel (the member) with the requisite expertise to determine the preliminary issue. Dentons will determine to whom the referral should be made.

Before a referral is made, Dentons will ask the appellant and DBT to agree a preliminary issue question or list of questions (the questions) for the member to decide. Dentons will give the appellant and DBT a deadline for when the questions need to be returned by them.

If the appellant and DBT are unable to agree the questions by the specified date , Dentons will invite the appellant and DBT to comment on the other party’s suggested questions. Dentons will give the appellant and DBT a deadline for submitting their comments. Dentons will then instruct the member to decide the questions which will form the scope of the referral.

Dentons will provide the member with the questions and the supporting materials (excluding the appellant’s written submissions and DBT’s written submissions) at least 15 working days before the deadline for the member’s written decision.

The appellant and DBT can prepare written submissions. They should be limited to 3 pages in length and in minimum 12 point font. The written submissions should be submitted to Dentons, who will then share them with the member. The member should have the written submissions at least 10 working days before the deadline for the member’s written decision.

If the member considers that further information is necessary to enable them to reach a decision, the member can request further information be sought by or from the appellant or DBT. The P and R Liaison will inform the appellant and DBT of the request and will set out the date by which further information should be provided.

The member will apply their independent judgement, in accordance with the guidance, when making a decision on the questions.

Within 10 working days of receiving the written submissions, the member will send a written decision to the P and R Liaison. The P and R Liaison will then send the decision to the appellant and DBT. This period may be longer where a request for further information has been made by the member. The member’s decision on the questions will be final.

Fees

DBT is liable for the panel’s fees and disbursements, in accordance with the agreed assurance and payment process.

Development or amendment of guidance or the ToR

DBT or any of the panel members should send such a request to the P and R Liaison Lead if they consider it necessary to:

• develop new principles or procedures
• amend existing principles or procedures set out in the guidance or this ToR

When they contact the P and R Liaison Lead, DBT or the panel members should identify the existing principles or procedures which they suggest changing, and the reason for this. The P and R Liaison Lead will then consult all panel members on the proposed amended or new principles or procedures. Following this consultation, DBT reserves the right to determine whether and how the principles or procedures will be amended or developed.

This version of the ToR was approved by DBT on 29 January 2026.