Unpacking the Social Security (Contributions) (Amendment No. 6) Regulations 2025

In a significant move to support postmasters caught up in the Horizon IT scandal, new UK legislation, the Social Security (Contributions) (Amendment No. 6) Regulations 2025, has been introduced. Here's what you need to know:

What's the Deal?

The legislation ensures that payments made to certain postmasters by the Department for Business and Trade (DBT) under the Horizon Convictions Redress Scheme (HCRS) are exempt from Class 1 National Insurance contributions (NICs). This means more money in the hands of affected postmasters, without the burden of additional NICs.

Who Benefits?

The new regulation specifically benefits postmasters who:

• Had their convictions overturned by a court.
• Were prosecuted for offences related to the Horizon system but weren't convicted.
• Received a caution, valid or not, concerning the Horizon system.
• In Scotland, accepted an alternative to prosecution or a similar measure from the Post Office.

Why Now?

The DBT is expanding the existing Horizon Convictions Redress Scheme to include more categories of affected postmasters. This change stems from a desire to alleviate the financial burden on those wronged by flawed convictions related to the Horizon IT system used by the Post Office.

Previous vs. Present Policy

Previously, payments to the newly included categories of postmasters under the HCRS would have been subject to Class 1 NICs. The amendment ensures these payments are exempt, aligning with the government's commitment to fair compensation.

Legal Framework

This legislative change was made possible by specific provisions in the Social Security Contributions and Benefits Act 1992, allowing certain payments to be disregarded when calculating earnings for NICs.

Impact and Consultation

Given the nature of the changes, no formal public consultation was conducted. The legislation is seen as beneficial, reducing the administrative burden for affected individuals and having no significant impact on businesses or the public sector.

In summary, this amendment aims to provide financial relief to postmasters wronged by the Horizon IT system, ensuring they receive their due compensation without the added weight of NICs deductions. This move reflects the government's ongoing efforts to rectify past injustices related to the Horizon scandal.