The government has announced that some family members of the victims of the Horizon scandal will be eligible for compensation.

Gareth Thomas says the scheme will be open to "close family members of existing Horizon claimants who themselves suffered personal injury - including psychological distress - because of their relative's suffering".

He says there will be a process for "providing financial redress to close family members of those most adversely affected by Horizon", as set out in today's report.

"Sir Wyn rightly recognises that designing a suitable compensation scheme for family members raises some very difficult issues. Nonetheless, we want to look after those family members who suffered most," he says.

Thomas says the current government inherited a compensation process that was "widely" seen as being "too slow, adversarial" and "legalistic".

He says that four years after the first High Court case exposed the Post Office scandal, "only 2,500" sub-postmasters have had final settlements and that there were "significant gaps" in the compensation process.

Thomas adds that there was no compensation scheme in place for sub-postmasters whose convictions had been overturned by parliament but that one has since been launched.

An independent process to appeal settlements or offers has been launched and discussions with Fujitsu - which developed the Horizon IT system - have begun over the company's contribution to the costs of the scandal, he adds.

We're now hearing a statement from the government on the Post Office Horizon report.

Post Office minister Gareth Thomas pays tribute to the bravery of the sub-postmasters, saying that being falsely accused of false accounting and theft led to them being "stressed beyond belief".

He acknowledges the human impact it had on the victims outlined in the report, with some suffering from mental health issues, losing their marriages, and in some cases, losing their lives.

The government will respond to the recommendations promptly, he says, adding that they will meet the deadline of 10 October given by Sir Wyn Williams, chair of the inquiry and author of the report.

Emily Atkinson
Live editor, at the inquiry

I’ve been speaking to Kathy McAlerney, who's here with her husband, Patrick.

Kathy was a sub-postmaster in a small branch in the village of Litcham, in Northern Ireland. Like others, unexplained shortfalls began appearing on her Horizon account.

Following an audit by the Post Office in 2007, she was suspended “on the spot” and “pursued for years” to pay back the money back. Under the terms of her contract, she was liable to cover the losses.

A year later, her contract was terminated. She was eight months pregnant with her fourth daughter at the time.

Her daughter is now 18-years-old - and Kathy is still awaiting compensation.

Reacting to the publication of the report, she says she “really hopes it will make a difference”.

“We’ve been waiting decades now. And we really just want to get to the point where we can put this behind us and move on with our lives.

“We are getting tired, you know. It’s exhausting."

Tom Beal
BBC Investigations journalist, at the inquiry

The costs paid to legal firms by the government and Post Office for delivering the four Post Office Horizon redress schemes are included in the inquiry report.

For its work on the Horizon Shortfall Scheme, the law firm Herbert Smith Freehills has been paid £67m by the Post Office up to 2 December 2024. The company has received a further £15m for its work on the Overturned Conviction Scheme.

There are also payments made by the Department of Business and Trade to its lawyers Addleshaw Goddard (£4.7m) and Dentons (£1.8m) for the Group Litigation Scheme legal costs. For the Horizon Conviction Redress Scheme, Addleshaw Goddard has been paid £152,000 up to the end of April this year.

Newly published government figures show the total legal costs paid for the “operational delivery of Horizon redress schemes” have risen to £100m.

Image source, PA Media

If you're just joining us this afternoon, the first part of the Post Office Horizon report has been published, laying out the human impact the scandal has had on victims.

There's been a lot to digest - some 162 pages - and there's been plenty of reaction to it. Here's a recap of what's happened so far today.

• The report found that 13 people, including six former sub-postmasters, had taken their own lives, with at least 59 people having "contemplated suicide at various points in time" due to Horizon and/or the Post Office
• Around 1,000 Post Office staff were prosecuted, with only 50-60 not convicted
• Former sub-postmaster Seema Misra, who was wrongfully convicted and sentenced to 15 months in prison while pregnant, says the report is "thoughtful" and that those who are accountable should go "behind bars"
• The Post Office apologised "unreservedly" for the suffering caused, describing it as a "shameful period" in its history.
• Report author Sir Wyn Williams says "large portions" of claims continue to be "difficult to resolve", with ""egregious delays" at almost every stage

We'll be bringing you further reaction to the report from victims, and a statement from the House of Commons shortly. Stay with us for the latest.

We can now bring you more from the chair's speech.

Sir Wyn Williams says he's "critical" of the Post Office and the government for the "development and evolution" of the compensation schemes for the victims, adding that there should not have been "four distinct and separate schemes for delivering financial redress".

He says even if his recommendations in today's report are "accepted and implemented as quickly as I would like, they will not constitute some magic formula for removing all of the problems from which the schemes suffer".

A glimpse at what's to come on responsibility for scandal?published at 13:28 British Summer Time

13:28 BST

Emma Simpson
Business correspondent, at the inquiry

Image source, Getty Images

This report lays bare what sub-postmasters have been through.

It’s the sheer scale of the havoc wreaked by a state owned institution who continued to deny for years that Horizon was to blame for the losses.

We now know that 59 contemplated suicide and 13 took their own lives.

The rest of it is devoted to the painful issue of compensation. Wyn Williams goes into great detail about all the issues across the various schemes and the “formidable difficulties” and delays for the victims in getting full and fair redress.

He’s proposing some sweeping reforms on the process of delivering redress.

But right at the start of the 160-page report, he says he's satisfied that senior employees, and not so senior employees, of the Post Office knew or at the very least should have known Horizon was capable of producing errors, despite some of the individuals being “very reluctant” to accept it during their evidence.

There was also “wholly unacceptable behaviour” perpetrated by a number of individuals, the report says.

This is perhaps a glimpse into what’s to come in inquiry's final report on what happened and who is responsible.

Delving into some of the specifics around compensation, Wyn Williams says "a large proportion of claims continue to be difficult to resolve".

He says his legal team have found that up until June of this year, 9,887 claims have been made - and 6,420 have been accepted.

"There are still more than 3,000 claims to resolve," Williams says - adding that there've been "egregious delays" to compensation at almost every stage.

Image source, Getty Images

Williams - chair of the Post Office inquiry - comments on how many people are sat before him and says he's "always been extremely grateful for the interest shown in this inquiry".

After recapping the various strands of his inquiry, he explains that he considered it essential to release today's partial report - rather than wait for a fuller one - due to the issues there've been with victims receiving compensation.

Williams goes on to say the picture revealed in this volume of his report is "profoundly disturbing".

He says bankruptcies occurred, marriages and families have been wrecked, businesses ruined and finances affected.

We're now hearing from Wyn Williams, chair of the Post Office Horizon IT Inquiry and the author of today's report.

Stick with us as we bring you key details from his statement - you can also watch it live at the top of the page.

"Today, we apologise unreservedly for the suffering which Post Office caused to postmasters and their loved ones," a spokesperson says, explaining that the inquiry "brought to life the devastating stories" of those impacted by the scandal.

"Their experiences represent a shameful period in our history.

"We will carefully consider the report and its recommendations."

A visibly emotional Seema Misra has just reacted to the report's findings - she says all these years on she's yet to receive her full and final compensation.

"The report itself is very, very thoughtful," she tells the BBC, adding that she believes legal redress for those seeking compensation "should be free".

She also says the "fight is still on" in terms of accountability: "The actual culprits need to go behind bars."

• As a reminder: Seema was eight weeks pregnant when she was sentenced to 15 months in prison after being wrongly convicted of stealing from her Post Office branch in West Byfleet, Surrey. She eventually gave birth to her second son while wearing an electronic tag.

Image source, PA Media

We're beginning to get some reaction from those at the centre of this scandal.

Campaigner and former sub-postmaster Jo Hamilton says the Post Office inquiry's report "shows the full scale of the horror that they unleashed on us".

• We'll bring you more reaction from victims shortly, stick with us

Emily Atkinson
Live editor, at the inquiry

A large part of the 162-page report is dedicated to what's referred to as the human impact of the scandal. I will summarise the key parts below – some of the details may be distressing:

The inquiry's chair Wyn Williams notes the trauma suffered by those who were interviewed under caution, prosecuted and convicted.

Post-conviction, many were subject to “harsh and abusive behaviour” from members of their community, and were ostracised.

Many considered or subjected themselves to self-harm, and suffered psychological harm and health issues. In addition, 19 people said they abused alcohol, which they attributed to their experiences with Horizon and the Post Office.

The family members of sub-postmasters also endured “very significant” suffering”. Some spoke of the adverse impact on their children, while many experienced “vitriolic abuse from local community”.

Many sub-postmasters also described significant delays in receiving compensation.

• If you are affected by any of the issues raised in our coverage, support and advice is available via the BBC Action Line

Emily Atkinson
Live editor, at the lock-in

• Errors in the system: The Post Office and Fujitsu "knew, or at the very least should have known", the Horizon IT system used in PO branches had faults. The sub-postmasters are also described as “victims of wholly unacceptable behaviour” by the two companies
• Impact on sub-postmasters and their families: It is “impossible to ascertain” how many people suffered, the report says. Many endured abuse in their local communities, considered or subjected themselves to self-harm, suffered psychological harm, lost their homes, suffered financial, physical and mental distress, and turned to alcoholism
• Lives lost: Thirteen people were found to have taken their own lives, six former sub-postmasters and seven others who were not sub-postmasters. The inquiry's chair Wyn Williams says he also "received evidence from at least 59 persons who contemplated suicide at various points in time and who attributed this to their experiences with Horizon and/or the Post Office"
• The key numbers: Approximately 1,000 Post Office workers were prosecuted, and only 50-60 were not convicted. Thousands were suspended - considerably more than those who faced criminal proceedings - and many later had their contracts terminated
• Delays to compensation: The delivery of redress to claimants under three separate schemes has been “bedevilled with unjustifiable delays”, and while some are satisfied, there are many who are not
• Redress: The government will devise a programme of redress to close family members of those most adversely affected. Additionally, the government, Post Office and Fujitsu will agree a programme of restorative justice

In a few minutes' time, the first report from the Post Office inquiry will be published and we'll bring you the key findings right here.

Remember: this part is on human impact and compensation, so don’t expect anything on who's to blame for the scandal.

Then at 12:30 we’ll get a statement from the inquiry's chair Wyn Williams, which we’ll also cover live - and you'll be able to watch at the top of the page.

Stick with us as we bring you the latest.

Image source, Getty Images

Katie Hunter
BBC Scotland reporter, at the inquiry

Ahead of the report being published, I've been speaking to Ravinder Naga - he falsely confessed to stealing money from his mother's post office in Greenock in 2009 to protect her from going to prison.

Appeal judges overturned his conviction last year.

He tells me today that he's after one thing: accountability.

"The people who died, they don't know their names have been cleared. They died before all this came out," he says.

While the focus of today's report will be on the victims and compensation, Naga says he ultimately wants those responsible for the scandal to go to prison.

"I want justice," he adds.

Emma Simpson
Business correspondent, at the inquiry

Dozens of victims and their families will be at the event today to hear Post Office inquiry chair Wyn Williams speak, including Wendy Buffrey and Nichola Arch from Gloucestershire. I spoke to them before they headed off.

Wendy was suspended after an audit in 2008 and prosecuted. She was scared into pleading guilty to fraud and did community service. She had to sell her house and business, and has suffered with her mental health.

"To actually have the establishment recognise what they've put us through is huge", she says.

"The apologies we've had from the Post Office have been so mealy-mouthed, not thought through, and really not sincere".

Nichola was accused of stealing from her branch and ended up being shunned by the community in her village and spat on outside a local supermarket. After two years she was found not guilty, "but the damage had been done by then".

"I think it's going to be really emotional for a lot of people, because he [Williams] really gets it."

"He's listened to some horrific stories, and so his report is going to contain some horrific findings."