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Home Office announces significant changes to the Windrush compensation scheme

Summary

Changes will speed up payments and expand eligibility for financial redress

By EIN
Date of Publication:

The Home Office has announced a major overhaul of the Windrush Compensation Scheme to address long-standing concerns about excessive bureaucracy delaying victims of the Windrush scandal from receiving compensation.

Empire WindrushImage credit: WikipediaNew measures will speed up payments and expand eligibility for financial redress. Victims of the scandal will now be able to receive up to 75% of their compensation award in advance while their claims are reviewed, and for the first time, they will be compensated for lost pension contributions and withdrawals made during periods of financial hardship. Priority processing will be given to applicants aged over 75 and those with serious health conditions. The revised scheme will also reimburse immigration fees wrongly paid, account for wage inflation, and recognise the difficulties of returning to work after unemployment.

The Home Office says that the changes will apply retrospectively.

Home Secretary Shabana Mahmood said on Friday: "It is unacceptable that many victims are still waiting for compensation all these years later. That changes today. We will deliver justice so that those suffering financial hardship through no fault of their own are paid for their lost pension savings. I will leave no stone left unturned until everyone affected receives the justice they deserve."

Mike Tapp, the Minister for Migration and Citizenship, provided the following details of the changes in a written statement to Parliament today:

Mike Tapp
The Parliamentary Under-Secretary of State for Migration and Citizenship

Statement

Last year, the government committed to resetting its response to the Home Office Windrush scandal, with a renewed focus on ensuring that members of the Windrush generation receive the support they deserve, delivered swiftly, fairly, and with dignity. Since that time, we have taken forward several actions to honour that commitment.

We have appointed Reverend Clive Foster MBE. as the first UK Windrush Commissioner on 18 June 2025 fulfilling a manifesto commitment. His crucial role provides independent oversight of the government's ongoing commitment to address the impact of the Home Office Windrush scandal and ensure that the voices of those affected remain at the heart of efforts to deliver justice and lasting change.

Through the work of the re-established Windrush Unit this Government have sought to strengthen engagement with victims, their families, communities and stakeholder organisations. This is enabling us to hear firsthand the impact that the Home Office Windrush Scandal had and continues to have on individuals and communities and make sure there is a real appreciation of the impact that policies and decisions have on people's lives.

We remain resolute in our determination to ensure the Windrush Compensation Scheme reflects lived experiences and delivers compensation in a manner that is both just and prompt. We have listened carefully to urgent recommendations from the Windrush Commissioner and feedback from community representatives, stakeholders and claimants. In response, I am announcing significant changes to the Scheme:

For the first time, the Scheme will compensate for the financial impact of lost occupational and personal pension contributions where individuals were unable to work due to being unable to demonstrate their lawful status in the UK. Compensation will also be available to those who had to withdraw funds from existing pension pots to support themselves and their families. This is in addition to existing provisions to ensure individuals' state pensions are not affected by time spent unable to access employment.

The scope of compensation for employment-related losses will be expanded to reflect wage growth and account for the challenges of returning to work following a long period of unemployment.

The Immigration Fees category will be broadened to cover any application fees incurred due to uncertainty about lawful status. This includes both successful and unsuccessful applications, ensuring that no one is left out of pocket for needing to prove their status.

And lastly, we have heard the concerns from communities about individuals passing away before receiving the compensation they are entitled to, as well as the financial hardships some are suffering. In response, people will now be offered an advance payment when seeking a review of their final compensation decision. Under this provision, individuals may receive up to 75% of their total compensation before the review process is fully concluded. We will also prioritise allocation of claims for individuals aged 75 and over, alongside existing measures for those with critical or life shortening illnesses.

These changes will be applied retrospectively, and updated rules and guidance will be published in due course.

We recognise that no amount of money can undo the pain, disruption, and loss experienced by members of the Windrush generation and their families. But through meaningful action we are determined to acknowledge that harm, provide redress, and rebuild the trust that was so profoundly damaged.