Guidance

Compensation guidance

Updated 24 November 2022

Version 6.0

Guidance for HM Passport Office staff who authorise compensation payments to customers and claim compensation from suppliers when things go wrong.

About: compensation guidance

This guidance tells HM Passport Office staff about our compensation policy.

This guidance explains, if things go wrong, when and how we will:

• compensate a customer

• claim compensation from our partners or suppliers

Contacts

If you have any questions about the guidance and your line manager or senior caseworker cannot help you or you think that the guidance has factual errors then email Guidance & Quality, Operating Standards.

If you notice any formatting errors in this guidance (broken links, spelling mistakes and so on) or have any comments about the layout or navigability of the guidance then you can email Guidance & Quality, Operating Standards.

Publication

Below is information on when this version of the guidance was published:

• version 6.0

• published for Home Office staff on 28 September 2022

Changes from last version of this guidance

This guidance has been updated to reflect the change in our sovereign from Her Majesty Queen Elizabeth II to His Majesty King Charles III.

Compensation guidance

This section tells HM Passport Office staff when to award compensation to customers if we have made an error.

HM Passport Office is fully committed to delivering a world-class customer experience. When something goes wrong (for example, we’ve made an error) we’ll do everything we can to make it right.

We will case note the application to record our decisions and make sure there is an audit trail.

Our legal responsibilities

While HM Passport Office is not legally responsible to compensate customers, we will when we are clearly at fault. See Compensation Act 2006. We will consider each compensation claim on a case-by-case basis. Any payments we make will be in the form of an ex-gratia (offered as a gesture of goodwill) payment. These payments can include:

• refunding the guaranteed service fee
• paying for the customer’s out of pocket expenses (if we have damaged a document or made a mistake)
• the entire cost of a missed holiday

HM Passport Office does not give legal advice. Customers seeking legal advice must consult an independent legal advisor about their case at their own expense. See the Royal Prerogative page.

Contributory negligence (when it’s the customer’s joint responsibility)

We issue all new passports with an instruction booklet telling customers to check their details before using their passport. We will consider the customer’s joint responsibility to report any errors or damage on their passport when we assess any compensation claim.

It is the customer’s responsibility to check their passport and:

• make sure all their personal details are correct
• make sure the passport is not damaged when they receive it (for example, bent or torn)
• report any errors at once so we can correct them

Legal responsibility to record lost documents

The Independent Commissioners Office (ICO) recommends HM Passport Office must record all lost documents as a data breach and record these on a security log. For example, documents may be lost in the office, by our couriers or by Royal Mail.

Details of lost documents must be recorded as a data breach by the Customer Service Management team (CSMT). All staff are responsible for notifying CSMT of a data breach.

When CSMT receive information about a lost document you, the CSMT officer must:

1. Access HM Passport Office Security Log on Sharepoint.

2. Record the details of the lost documents on the HM Passport Office security log.

3. Get replacement documents for the customer by contacting:

• UK Visas and Immigration for naturalisation certificates

• General Registrar Office for birth, death or marriage certificates

4. Tell the customer they must:

• get replacements of any other type of lost documents

• keep the receipts and send them to HM Passport Office

Compensation for distress (consolatory payments)

Treasury and Cabinet Office guidance states that HM Passport Office may only compensate for a customer’s financial loss. If a customer has suffered distress (for example loss of enjoyment and hardship) we will consider exceptional claims on a case-by-case basis. For example, if:

• the customer misses a life event (for example, a wedding or funeral)
• we lose the customer’s irreplaceable documents which have sentimental value (for example, old family photographs)
• an office closes early causing the customer to miss their interview (for example, a building evacuation due to a security alert)

Compensation for distress must not be excessive, with a standard claim of between £200 and £300. In cases of serious distress (for example, being imprisoned because of our error) the maximum claim can be up to £500.

If you are unsure how much to compensate a customer, refer to a senior manager in the Customer Service Management team (CSMT) or a senior manager with customer service responsibility in your area.

Customer’s compensation award letter

We will not normally make consolatory payments, we must make it clear to the customer that even if we accept their claim, they will not receive further compensation relating to the same claim.

We must include the following paragraph in the customer’s award letter:

“It is HM Passport Office policy to reimburse reasonable out of pocket expenses, incurred by customers as a direct consequence of clear operational errors or omissions by its staff, by means of an ex-gratia payment. It is not our normal policy to make compensation payments for loss of enjoyment, distress or inconvenience arising from such errors.”

When sending a final letter to close a customer’s claim, we must also make sure to include the following line:

“in full and final settlement of your claim.”

Refunds when we miss our guaranteed turnaround times

HM Passport Office offers a Tiered Application Service (TAS) to customers in the United Kingdom. Overseas customers must use the standard service.

We guarantee the turnaround time for Premium (1 day guaranteed service) and Fast Track (1 week guaranteed) services. If we do award compensation (for example, for not meeting the turnaround time) we will refund the extra service level fee but not the standard passport fee. See Fees for more information.

We recommend customers do not to book travel until they receive their passports, as we are not liable for compensation if we do not meet the standard turnaround target. We advise customers who need their passports urgently to use the Premium or Fast Track services.

Refund for out of pocket expenses

If HM Passport Office (or our partners) makes a mistake, we may refund the following out of pocket expenses for:

• additional photos
• replacement documents
• postage costs
• telephone costs
• travel to our offices

Refund for loss of a holiday

We tell our customers not to book travel unless they’ve received their new passport as we cannot accept responsibility for missed travel. We will not give a refund or compensation if they miss travel because we did not meet our guaranteed or standard service level agreements.

We will however consider refunds for missed travel if the passport is faulty or we made an error on it. In these cases, we will:

• consider the refund or compensation request on a case-by-case basis
• take into account:
  • the number of days lost (if a customer was able to travel for part of their trip)
  • any extra costs the customer incurred (for example, rearranging flights)
  • if the customer already received a refund from elsewhere (for example, from a travel agent or insurance company)

Reimbursement for lost or damaged documents

HM Passport Office will replace a customer’s documents if we or Sopra Steria Ltd lose or damage a supporting document.

We will only replace customers documents if they report them lost within 6 months of the issue of their passport or from the date the application reached a terminal state (for example we withdrew the application).

To replace a customer’s documents in these circumstances you, the examiner must:

1. Tell the customer you will contact Customer Services Management team (CSMT).

2. Email CSMT the:

• application number

• customer name and address

• the address the documents were sent to (if this is different from the customer’s address)

• a list of the lost documents

• the customers telephone number and email address

3. Case note the application to record the lost documents.

When you receive the customer’s receipts you must refund their out of pocket expenses.

The customer might request compensation for distress or loss of a holiday, you must consider the request on a case-by-case basis.

Lost or damaged by our couriers

The UK secure delivery provider delivers passports and documents in the UK. DHL delivers overseas. The UK secure delivery provider holds photographic delivery records (they do not take a photo of every delivery) and DHL holds proof of delivery (customer signatures) for 90 days.  When there is no photographic delivery record or the customer disputes delivery (or the photographic evidence does not show the damage), we will consider each request for reimbursement on a case-by-case basis.

You must refer the customer’s complaint to the UK Delivery team for investigation.

Refund and compensation claims against our partners and suppliers

Claims against Post Office Ltd

Post Office Ltd send all applications to HM Passport Office by Royal Mail Secure Delivery. If the Post Office Ltd lose a Check & Send application, they will be liable for the costs (for example, getting replacement documents). Claims from customers must be sent by email to the Customer Services Management Team (CSMT) who will email Post Office Ltd.

If an application is incorrect or delayed due to a Post Office Ltd error (as set out in relevant guidance), HM Passport Office examiners will write to the customer telling them they must claim a refund directly from the Post Office for the Check & Send fee. Details of how to do this must be included in the letter you send.

If the customer asks for a refund of the Check & Send fee from CSMT, you, the CSMT officer, must:

1. Check the application to see if the examiner has already sent Check & Send fee refund letter.

2. Send a:

• Check & Send fee refund letter to the customer if this has not already been sent by the examiner

• duplicate Check & Send fee refund letter to the customer

Claims against Royal Mail

If a customer posts an application to HM Passport Office by standard mail and the application is lost in the post, we will tell the customer to contact Royal Mail directly.

HM Passport Office does not refund for lost or damaged documents returned by Royal Mail where a customer has chosen not to pay the courier fee; the customer must contact Royal Mail. HM Passport Office must record the data breach.

Claims against the UK secure delivery provider

The UK secure delivery provider delivers passports and documents to our customers in the UK by secure delivery.

They have a service level agreement (SLA) with HM Passport Office to make deliveries:

• for standard applications, it’s:

  • 99.75% 2 working days after collection, for addresses in mainland UK

  • 99.5% within 3 working days after collection, for addresses in all other UK locations

• For Fast Track applications it’s:

  • 99.75% the next working day after collection, for addresses in mainland UK

  • 99.5% the next working day after collection, for addresses in all other UK locations

The SLA applies when the UK secure delivery provider has delivered or tried to deliver (for example, if the customer is unavailable to sign for receipt) a package to the customer.

HM Passport Office must give the package to the UK secure delivery provider during standard office hours (9am to 5pm) to meet the next working day delivery (Monday to Friday).

We will normally consider an ex-gratia payment (given as a gesture of goodwill) or for loss of a holiday if the customer was prevented from travelling as a direct result of:

• the UK secure delivery provider’s failure to deliver a passport within the guaranteed SLA for a Premium or Fast Track application (if the application was straightforward and properly completed)
• the secure delivery provider’s failure to correctly deliver the passport
• HM Passport Office’s failure to correctly make the passport available to the UK secure delivery provider

How to process a compensation claim

This section tells HM Passport Office staff who has the authority to award a customer’s compensation claim and what information we must be keep to show we processed the claim correctly.

Staff must decide before they authorise a compensation payment if they have the delegated authority to do so depending on:

• their grade
• the cost of the payment
• whether the customer has supplied the necessary receipts or correspondence
• whether the complaint is straightforward or is questionable

Delegated financial authority is about more than awarding money. We must also consider whether:

• a customer’s case is clear cut or involves discretion

• there is a risk of criticism around the use of public funds

Who authorises payments

Operational examiners can authorise straightforward non-questionable payments for out of pocket expenses or guaranteed service level fails. They can authorise:

• out of pocket expenses up to and including £20

• non questionable service level fails up to and including £101.50

Any manager dealing directly with a customer can use their level of financial authority to deal with straightforward cases and where there is minimal risk of criticism. Complex cases where the reason to compensate the customer is not straightforward must be considered and authorised by a senior manager.

The following managers have the financial authority to authorise the following amounts:

• Executive officers up to and including £200

• Higher executive officers (HEOs) up to and including £750

• Senior executive officers (SEOs) up to and including £1250

• Grade 7 or Deputy Director of Operations up to and including £2500

• Chief Operating Officer over £2500

HEO’s must use their increased level of delegated authority to deal with any cases that have all the receipts, are fully case noted and the claim is non-questionable. They must liaise with the relevant SEO if the case falls outside their delegated authority to consider applying discretion, prior to authorising a payment.

What a non-questionable claim is

A straight forward and non-questionable compensation claim is one where it is clear we:

• made an error which has caused the customer extra expense

• have damaged or lost a customer’s document and we must replace it

A straight forward non-questionable guaranteed service level fail is one where we:

• clearly failed the service level due to an error, omission or unnecessary delay.

A straight forward non-questionable service level fail does not include cases where we have dealt with the application within a reasonable timeframe, but third party delays have caused us to miss the service level. For example, when we have contacted a countersignatory and they delayed replying.

Proving a compensation claim

HM Passport Office must keep a complete audit trail when making payments to customers including:

• all correspondence

• any supporting calculations

• evidence relating to the agreed payment

• receipts (if needed)

We will keep evidence for 3 years where the payment is under £50 and 5 years where the payment is over £50.

Receipts over £10

We will request receipts from customers claiming out of pocket expenses over £10.

Receipts under £10

We will not ask for receipts for claims lower than £10, if we believe the customer met reasonable costs due to an error on our part. These costs may include:

• additional photos

• postage costs

• providing additional documents

Receipts: exceptions

If the customer has lost their receipts, we may use our discretion to pay up to £50 for out of pocket expenses.

We must have receipts from the customer if we intend to ask our supplier to pay or contribute to the customer’s compensation claim (for example, if an interpreter did not attend an interview and the customer had to pay further travel costs to attend appointment).

Customer Service Management team (CSMT) must include the following paragraphs in any letter they send asking for customer receipts:

“Noting your request for reimbursement, our policy is to reimburse any reasonable out of pocket expenses incurred by our customers as a direct result of clear operational errors or omissions by our staff by means of an ex-gratia payment. It is not our policy to make compensation payments for loss of enjoyment, distress or inconvenience arising from such errors. We are accountable for public funds and must recover all operating costs through fees; therefore, it is essential that any compensation is auditable and justifiable.

“Please provide a full breakdown together with the relevant receipts, tickets or other proof of payment such as bank or credit card statements for our consideration of reimbursement.”

Loss of earnings

If customers claim a loss of earnings, they must provide a letter from an accountant or employer confirming hourly or daily net pay and the working hours or days lost.

We will:

• pay compensation on a net basis with the standard rate of tax deducted

• consider loss of annual leave on the same basis as loss of earnings

Mileage

We will pay mileage claims at the public transport rate (23.8p per mile). We will pay round figures if they are less than or equal to this amount. We will not ask for mileage claim receipts if we can check the number of miles using an online journey planner or map.

Solicitor costs

We expect our complaints process to be simple enough for customers to use without needing legal advice. HM Passport Office will not reimburse solicitor costs for straightforward complaints. We tell solicitors their client will be responsible for their legal fees.

Ombudsman claims

This section tells HM Passport Office staff how to deal with compensation claims the Parliamentary and Health Service Ombudsman (PHSO) have investigated.

If a customer is unhappy with how their complaint has been handled, they can take their case to the Parliamentary and Health Service Ombudsman (PHSO) by contacting their MP.

While the PHSO does not uphold many complaints against HM Passport Office, they will investigate the case, record the details and decide if maladministration has occurred.

The PHSO defines maladministration as:

• avoidable delays

• faulty procedures

• not telling a customer who has complained about their rights to appeal

• unfairness, bias or prejudice

• giving advice that is misleading or unsuitable

• refusing to answer reasonable questions

• being impolite

• not apologising properly for mistakes

• mistakes in handling claims

• not offering an appropriate solution when one is necessary

The PHSO will review the case, tell the customer a correct solution and let HM Passport Office know the outcome.

Handling a complaint badly is as bad as making the original error, staff dealing with claims for compensation must:

• record all cases in detail, giving reasons for the actions taken

• when making an offer of compensation, consider if we dealt with the complaint satisfactorily

• consider if procedures have been followed (by HM Passport Office staff or our suppliers), as financial compensation may be appropriate if they have not

Reclaiming compensation from suppliers

This section tells HM Passport Office how to claim reimbursement from our suppliers when they have made an error and we have paid compensation to the customer.

The process of claiming reimbursement from our suppliers and business partners depends on the organisation.

Reclaiming from the UK secure delivery provider

HM Passport Office is responsible for paying compensation to the customer in most cases, even if the error is with the UK secure delivery provider. The Passport Service Management team will consider pursuing reimbursement from the UK secure delivery provider.

To claim costs from the UK secure delivery provider the Customer Service Management team (CSMT) officer must:

1. Contact the UK secure delivery provider and:

• ask them to consider the customer’s complaint and if they are liable to repay the compensation claim

• have not compensated the customer directly

2. Refund the customer if the UK secure delivery provider has not already done so.

3. Send a request to the Passport Service Management team for reimbursement from the UK secure delivery provider where the claim exceeds £1000 (refunds under £1000 are authorised by CSMT).

Reclaiming from DHL

HM Passport Office is liable for any compensation due to the customer. DHL are only liable for service credits of £250 for each package lost and £100 for each package (passport or supporting documents) lost or damaged while in their care.

CSMT will handle complaints and refer them to the International Delivery team in Peterborough, who will investigate the complaint.

The International Delivery team will:

• request a service credit against the commercial partner

• make sure CSMT have the correct information to deal with the customer

• decide about compensation

If the International Delivery team receive a complaint direct, they must tell CSMT who will manage the case.

CSMT will arrange for the compensation to be paid to the customer’s credit card (the card used to pay for the application) if the value of the compensation is less than the cost of the original application.

If the value of the compensation is more than the cost of the original application, CSMT will:

1. Send a letter to the customer asking them to call us back on a non-recorded line, to give us their banking details.

2. Make the payment direct to the customer using a card machine (WorldPay).

Reclaiming from Teleperformance

HM Passport Office are responsible for paying compensation even if the error was made by Teleperformance (TP). In cases where TP has admitted responsibility and we have paid a customer more than £1000 in compensation, the case must be sent by email to their enquires inbox.

Any reimbursement made will be received as a credit against the HM Passport Office invoice, as there is no provision within the TP contract for them to be liable for compensation payments.

Reclaiming from Sopra Steria LTD and Thales

HM Passport Office are responsible for compensating customers for any errors made by Sopra Steria or Thales. Both suppliers are only liable for service credits.

The completed case should be sent to the Supplier Queries team who will investigate the case with a view of settling the claim between both parties.

Reclaiming from the language services provider

If an interpreter is late or does not arrive for a pre-arranged interview, the customer can claim compensation. Our language service provider will:

• reimburse for reasonable travel expenses (received within 3 months of a cancelled interview)
• arrange for a new interpreter

The CSMT will request copies of receipts and refund the customer directly. CSMT will then email the details of the claim and the relevant provider to the Passport Service Management team. CSMT must send copies of all receipts to the Passport Service Management team as soon as possible.

Passport Service Management team will consider overseas claims against a language services provider on a case-by-case basis.

Reclaiming from overseas commercial and non-commercial suppliers

The CSMT will deal with any compensation claims involving TLScontact and Visa Facilitation Services (VFS) on a case-by-case basis. CSMT must email the details of any claims over £400 to the Supplier Queries team who will liaise with TLS or VFS to decide who is at fault.

Reclaiming from Australia and New Zealand posts

CSMT will deal with any claims for compensation from overseas customers who have used the Australia and New Zealand Check & Send services.