Guidance
Main differences between the Dispute Resolution Process (DRP) and HSS Appeals process
Information to help postmasters and their legal representatives decide whether to transfer from the Dispute Resolution Process (DRP) to the Horizon Shortfall Scheme Appeals (HSSA) process.
| Issue | Dispute resolution process | Horizon Shortfall Scheme (HSS) Appeals |
|---|---|---|
| Scheme administrator | Post Office | The Department for Business and Trade (DBT) which is part of the government. |
| Scheme established | May 2020 | April 2025 |
| Will the scheme be independent? |
DRP is operated by Post Office and meetings within the DRP will be attended by Post Office representatives. Post Office may refer cases back to the independent HSS panel which originally assessed the case for reassessment if new information is provided within the DRP. Post Office will apologise to applicants for their experiences with Horizon shortfalls at any DRP meetings. |
Post Office is not involved in the HSS Appeals process, other than by providing DBT with information relating to the HSS claim being appealed. The initial HSS Appeals fresh assessment of the case is conducted by external lawyers instructed by DBT independently of Post Office. The HSS Appeals Independent Panel (not connected to the HSS panel which originally assessed the case) and Reviewer are independent of DBT and Post Office. |
| How to challenge the offer received and the timescales for this | Two Dispute Resolution meetings take place between the applicant and Post Office (a Good Faith meeting and an Escalation meeting if both are required) to discuss why the applicant disputes the HSS Panel offer. If settlement is not reached at these meetings, the case can be referred to mediation with an independent mediator. If settlement is not reached following mediation, then the HSS Terms of Reference contemplate court proceedings or arbitration depending on the value of the claim. |
DBT aims to provide a response on 90% of cases within 40 working days of a complete submission to appeal. If settlement is not reached within a reasonable amount of time (and no more than 2 months) then the case can be referred to an Independent Panel of legal and industry experts. In exceptional circumstances, further escalation can be made to an independent judge or barrister (the Reviewer) who will aim to provide their decision within 2 weeks. If settlement is not reached following the above processes, paragraph 7(g) of the HSS Terms of Reference, which contemplate court proceedings or arbitration depending on the value of the claim, continue to apply. |
| Are legal costs funded to help me with the process? | Yes, reasonable legal costs will be funded with allowances depending on the complexity of the case. | Yes, reasonable legal costs will be funded under the HSS Appeals聽tariff of reasonable legal costs. |
| Will I pay tax on the amounts I receive? | Tax on HSS offers is effectively limited to the Basic (Starter in Scotland) rate of tax (currently 20%), and is compensated for by Post Office through a 鈥榯ax top up鈥� process when payment is made. | No tax is payable on HSS Appeals offers. |
Updates to this page
Published 27 June 2025