Horizon Shortfall Scheme (HSS) fixed sum offer permission to appeal process: tariff of reasonable legal costs
Published 20 May 2026
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Introduction
The government has agreed to pay the reasonable legal costs of postmasters in the Horizon Shortfall Scheme (HSS) fixed Sum Offer (FSO) Permission to Appeal process, announced on 20 May 2026.
This guidance sets out the tariff by which those costs will be calculated. It has been agreed through discussions between the Department for Business and Trade (DBT) and the legal advisers listed in Annex A.
The government welcomes the commitment of these legal advisers not to seek fees from their clients in addition to its support for reasonable costs.
The government strongly advises postmasters not to engage any lawyer who asks for payment, either during the claims process or when compensation is paid. This may mean that eventual compensation would be reduced by legal costs which the postmaster would not be able to recover.
All figures in this guidance exclude VAT.
Structure of allowances
For each case, a flat fee costs allowance of £1,500 will be available, reflecting the legal adviser’s likely costs for a typical case. No allowance will be paid in respect of any case which does not meet the FSO Permission to Appeal process eligibility conditions.
There will be no exceptions allowed for payments beyond the agreed tariff for work on the FSO Permission to Appeal process. This includes no additional allowances for expert evidence, because the process does not require the submission of evidence to support the claimant’s narrative.
If a case is granted permission to appeal in the HSS Appeals process, legal advisers will be able to access the full tariff of reasonable legal costs for that process.
Deductions
A significant proportion of work undertaken by legal advisers on the FSO Permission to Appeal process (such as introductory meetings, ID and eligibility verification and registration form) will be directly applicable to a subsequent HSS Appeal.
Because this work will not need to be repeated upon transfer, and to prevent double payment for work carried out in the FSO Permission to Appeal process, a 40% deduction to the full £1,500 costs allowance will be applicable to cases that are granted permission to appeal. The fees claimable are outlined in table 1.
Table 1
| Fee deduction applicable | Total amount payable | |
|---|---|---|
| Case granted permission to appeal | 40% | £900 |
| Case NOT granted permission to appeal | Not applicable | £1,500 |
Timing of payment
The fee for each case will be payable when a final decision is made in the FSO Permission to Appeal process.
In line with the process on HSSA, at the end of each month, each legal adviser should submit a schedule setting out any fees they are claiming in respect of the FSO Permission to Appeal process during that month. DBT will aim to make payments against these schedules within 28 days.
Further information
DBT recognises that postmasters may not have previously received legal support on their Horizon Shortfall Scheme (HSS) claims.
DBT will only pay costs relating to a request for permission to appeal under the HSS Appeals process. Post Office is responsible for paying reasonable costs relating to its HSS Dispute Resolution Process. DBT will not pay legal costs for work relating to original HSS applications, whether for a fixed sum offer or individual assessment.
This tariff of reasonable legal costs does not cover any other redress schemes.
DBT will not cover payment of legal costs relating to claims for third parties.
Annex A: firms who have agreed to the FSO Permission to Appeal process tariff of reasonable legal costs
| Firm | Telephone | Contact | |
|---|---|---|---|
| Bailoran Solicitors | jb@bailoransolicitors.com | 01132660735 | John Bailes |
| Digby Brown LLP | gordon.dalyell@digbybrown.co.uk, kieran.mcgrath@digbybrown.co.uk | 03330605394 | Gordon Dalyell, Kieran McGrath |
| Freeths LLP | hssappeals@freeths.co.uk | 08000485205 | Jade Flint, Emma Anderson, Michael Hoskins |
| Howe + Co Solicitors | help@howe.co.uk | 02088404688 | Kieran O’Rourke |
| Hudgell Solicitors | Nmh@hudgellsolicitors.co.uk | 07739325274 | Neil Hudgell |
| Schofield Sweeney LLP | stephenlewis@schofieldsweeney.co.uk | 01138494069 | Stephen Lewis |
| Shanahans Solicitors | dom@shanahans-law.co.uk, zac@shanahans-law.co.uk | 02920190184 | Domenico Nigliazzo, Zachary Nicholas |
| Ward Hadaway LLP | Neil.Armitage@Wardhadaway.com, Elizabeth.Collings@wardhadaway.com | 03301373336, 03301373332 | Neil Armitage, Elizabeth Collings |