Victims of the Post Office Capture scandal say they are being treated as second-class citizens – accusing the government of running a “two-tier” compensation system.

It comes as the Department for Business and Trade announced the launch of the first-ever redress scheme for those wronged after faulty software created false accounting shortfalls in the 1990s.

Capture was used between 1992 and 1999 in up to 2,500 Post Office branches, with many sub postmasters making up cash losses themselves.

A government-commissioned report last year found it was likely the software caused accounting errors.

The Capture Redress Scheme will provide payments of up to £300,000, and more in “exceptional” cases, to former postmasters who suffered financial losses.

Steve Marston, who was convicted in 1998 of stealing from his branch and is not yet eligible to apply to the scheme, said other victims were feeling “frustrated” with it.

“I want to know, what do they consider exceptional circumstances?” he said, “because I want it to see it in black and white what they consider as exceptional circumstances rather than just a vague statement.”

He said that victims felt like “second-class” citizens, describing the Horizon schemes and the new Capture scheme as “two-tier” systems.

“[It’s] one law for the Horizon victims, and a totally different law for us Capture victims and that’s not really fair.

“One of the main bones of contention is the fact that with Horizon there’s a right of appeal against decisions, and you’ve got multiple rights to appeal.

“Whereas with the Capture appeal process, there’s only a one-shot chance, so basically, it’s a second-class system.”

The scheme will be tested for the first 150 claimants before a full roll-out.

Chris Roberts, whose mother Liz was jailed in 1999 for theft, is one of them and said victims were concerned about the “glacial pace” of government.

He is able to apply to the redress scheme on behalf of his father, who was a postmaster alongside his mother, who oversaw accounts.

Both Liz and Bill Roberts have passed away.

“I’d hate us to get to the point where, you know, this scheme’s come out and we go through these 150 cases and then it’s further developed … and half the people it would apply to are gone,” Chris said.

“We will lose people before they can see justice, and I think that’s a terrible tragedy.”

Under the Capture scheme, eligible claimants will receive an immediate interim payment of £10,000.

An independent panel will then assess final awards through a banding model ranging from £10,000 to £300,000, with higher payments in exceptional circumstances.

The Post Office Minister Blair McDougall, speaking exclusively to Sky News, said he understood why victims have “low levels of trust in the state”.

He said: “They’ve been treated appallingly by the state, but what we’ve done with this scheme is to try to learn some of those lessons from previous compensation schemes for postmasters that didn’t work.

“So we’re collecting more evidence from the beginning to try to speed things up.

“We’re trying to give sub postmasters the benefit of the doubt throughout this. And I hope we will see that this scheme treats them with a bit more dignity and a bit more urgency.”

He also said that funds overall for the Capture scandal were “uncapped”, with “no ceiling” on compensation.

Mr McDougall also said that the government was working “as fast as we possibly can, and that’s because people have waited so long”.

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When asked if he would personally guarantee speedy redress, he replied: “Absolutely – that’s what we are doing today, to make sure that we have a scheme that gets people’s redress as quickly as possible.

“But it’s challenging, because we’re dealing with cases where there’s not a lot of evidence. So much time has passed.

“So we tried to design a scheme to get postmasters the benefit of the doubt and to try to be as fair as possible.”

He said within the scheme there was the “opportunity” for victims to make a “wider case of the impact on their lives – and if the independent panel feels that there is a compelling case, they can go beyond that £300,000”.

High street bank Santander has launched a scathing criticism of the car finance compensation scheme and delayed the release of its financial results “in light of uncertainties” it has caused.

The Spanish-owned lender called for government intervention – warning it sees the scheme as posing a wider threat to the economy, jobs and consumers.

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The scheme was set up by financial regulator, the Financial Conduct Authority (FCA), to compensate people mis-sold car loans.

Under FCA proposals, up to 14.2 million people could each receive an average of £700, as lenders broke the law by failing to disclose they paid commission to brokers. It meant customers lost out on better deals and sometimes paid more.

The proposal differs, Santander said, “in important respects” from the Supreme Court ruling that paved the way for the redress plan.

Mr Regnier said: “We believe that the level of concern in the industry and market is such that material changes to the proposed FCA redress scheme should be an active consideration for the UK government.

“Without such change, the unintended consequences for the car finance market, the supply of credit and the resulting negative impact on the automotive industry and its supply chain could significantly impact jobs, growth and the broader UK economy.

“This could also cause significant detriment to the consumer.

“What is at stake is the supply of credit that customers need and that supports a very important sector for the economy.”

Deferred results

Santander was due to publish its latest financial figures on Wednesday morning, but has held back until it says it gets “greater clarity” on the scheme and its impact on the bank and the wider market.

No new date to report results was given. Release of the same third-quarter results last year was also deferred due to uncertainty over the impact of car loan mis-selling.

The hit to Santander, however, is not expected to impact its operations or financial position, even in a worst-case scenario for the bank where it has to allocate more funds for compensation, it said.

It had already set aside £295m to deal with the mis-selling.

The FCA said, “We believe a compensation scheme is the best way to settle, for both lenders and consumers, liabilities that exist no matter what.

“Alternatives would cost more and take longer. It’s vital we draw a line under the issue so a trusted motor finance market can continue to serve millions of families every year.”

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Santander said it was committed to “ensuring fair outcomes” for its customers and will continue engaging constructively with the FCA, HM Treasury and other stakeholders.

Santander UK shares were up 0.5% following the news.

Rachel Reeves has said she is determined to “defy” forecasts that suggest she will face a multibillion-pound black hole in next month’s budget.

Writing in The Guardian, the chancellor argued the “foundations of Britain’s economy remain strong” – and rejected claims the country is in a permanent state of decline.

Reports have suggested the Office for Budget Responsibility is expected to downgrade its productivity growth forecast by about 0.3 percentage points.

That means the Treasury will take in less tax than expected over the coming years – and this could leave a gap of up to £40bn in the country’s finances.

Ms Reeves wrote she would not “pre-empt” these forecasts, and her job “is not to relitigate the past or let past mistakes determine our future”.

“I am determined that we don’t simply accept the forecasts, but we defy them, as we already have this year. To do so means taking necessary choices today, including at the budget next month,” the chancellor added.

She also pointed to five interest rate cuts, three trade deals with major economies and wages outpacing inflation as evidence Labour has made progress since the election.

Speculation is growing that Ms Reeves may break a key manifesto pledge by raising income tax or national insurance during the budget on 26 November.

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Although her article didn’t address this, she admitted “our country and our economy continue to face challenges”.

Her opinion piece said: “The decisions I will take at the budget don’t come for free, and they are not easy – but they are the right, fair and necessary choices.”

Yesterday, Sky’s deputy political editor Sam Coates reported that Ms Reeves is unlikely to raise the basic rates of income tax or national insurance, to avoid breaking a promise to protect “working people” in the budget.

Sky News has also obtained an internal definition of “working people” used by the Treasury, which relates to Britons who earn less than £45,000 a year.

This, in theory, means those on higher salaries could be the ones to face a squeeze in the budget – with the Treasury stating that it does not comment on tax measures.

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In other developments, some top economists have warned Ms Reeves that increasing income tax or reducing public spending is her only option for balancing the books.

Experts from the Institute for Fiscal Studies have cautioned the chancellor against opting to hike alternative taxes instead, telling The Independent this would “cause unnecessary amounts of economic damage”.

Although such an approach would help the chancellor avoid breaking Labour’s manifesto pledge, it is feared a series of smaller changes would make the tax system “ever more complicated and less efficient”.