NAO report on government compensation and financial recognition schemes

STATEMENT OF RESPONSE

Last week, the National Audit Office published its report on Government’s Compensation and Financial Recognition Schemes. I welcome this independent scrutiny, and I am grateful to the NAO for engaging directly with my office, and with community organisations during its preparation.

The report highlights some genuine progress. Processing times have improved significantly, from an average of 14 months in 2020 to five months by 2025, with 62% of eligible claims now receiving a decision within three months. The single caseworker model has helped deliver a more consistent experience, though community groups continue to raise concerns about cultural understanding and empathy, which I will continue to monitor.

However, there remains significant progress to be made. Forty-two claims have been in progress for over a year. For those individuals, many of whom may be older, that is simply too long. I have consistently raised that the proportion of nil awards, which account for 56% of concluded claims, and the risk this poses of retraumatising claimants and undermining trust in the scheme. The NAO’s report reflects those concerns. My office will undertake a sample-based review of nil-award decisions to understand what factors are contributing to these outcomes, identify trends, and develop proposals to achieve meaningful reductions. I will share findings with the Home Office and directly with affected communities in due course.

The NAO notes reports that some cases initially refused were later reconsidered and compensation awarded following further engagement by solicitors. This suggests that access to appropriate support can have a meaningful impact on outcomes. While recent advocacy funding is welcome, there remains scope to strengthen provision, especially for those navigating reviews and more complex claims. Comparable compensation schemes have funded legal support, and I believe targeted, proportionate legal assistance would benefit claimants, improve the quality of applications, reduce the incidence of nil awards, and help limit costly and avoidable reviews.

The Windrush generation deserves a compensation scheme they can trust and that delivers for them. There has been progress, but more must be done, and I will continue to hold the government to account until that happens.