PARLIAMENTARY DEBATE
Post Office Horizon Scandal - 10 January 2024 (Commons/Commons Chamber)
Debate Detail
The Government are taking measures to speed up the flow of compensation. We have already set a target of issuing initial offers for 90% of group litigation order cases within 40 days of receiving a completed application. I announced in November that we would be introducing a £600,000 up-front offer for claims with overturned convictions, which people could choose to take rather than going through the detailed assessment process. This has already made a real difference. Before my announcement, only five of the relevant people had reached full and final settlements; I can now report that, with the help of the minimum payments, we have finalised 30 cases. This has obviously speeded matters along for those who have taken this up-front offer. It has also helped those who have chosen individual assessment, because resources can be concentrated on those cases.
I can announce today that we are taking similar measures in respect of the group litigation order scheme. We will now make people in that scheme an up-front offer of £75,000, which will save them having to go through a full assessment. However, as with overturned convictions, if they believe they are entitled to more, they are welcome to continue with the full assessment. Not only will this allow the Department to focus its resources on the larger cases, but it will allow claimants’ lawyers to do the same. The pace at which we can get claims into the scheme is the key constraint on how quickly we can settle them. The up-front offer is smaller for the GLO scheme than for the overturned convictions because the claims tend to be smaller. We estimate that perhaps a third of GLO claimants may want to consider this route. I am sure the House will welcome this measure.
When I made my statement on Monday, I heard Members from all parts of the House share my desire to ensure justice for postmasters who have been convicted of offences as part of the scandal. The whole House is united on this, and in the light of last week’s excellent ITV series, I believe the whole nation is united on it, too. We have all been moved by the stories of postmasters who have been unjustly convicted and the terrible effects over the period of two decades on their finances, health and relationships. Indeed, we have seen whole lives ruined by this brutal and arbitrary exercise of power.
Hundreds of convictions remain extant. Some of those convictions will have relied on evidence from the discredited Horizon system; others will have been the result of appalling failures of the Post Office’s investigation and prosecution functions. The evidence already emerging from Sir Wyn Williams’s inquiry has shown not only incompetence, but malevolence in many of their actions. This evidence was not available to the courts when they made their decisions on individual cases. So far, 95 out of more than 900 convictions have been overturned. We know that postmasters have been reluctant to apply to have their convictions overturned—many of them have decided that they have been through enough and cannot face further engagement with authority. Many fear having their hopes raised, only for them to be dashed yet again.
The Horizon compensation advisory board has recommended that we should overturn all the convictions of the postmasters who were prosecuted in the Horizon scandal. I think its motivation for doing so is absolutely right, and we will work with it to speed up the process. May I put on the record my thanks to Lord Arbuthnot, who is in the Gallery today, and the right hon. Member for North Durham (Mr Jones) for their work on the campaign generally and on that advisory board?
Following the recommendation would involve unprecedented action by Parliament to overturn specific verdicts of the courts. The Government completely recognise the importance of an independent court system and judiciary, so the recommendation raises important issues of constitutional principle. This is therefore not a decision we can take lightly. It also creates the risks of a different sort of injustice.
I am sure that a great many people were wrongly convicted in the scandal, but I cannot tell the House that all of those prosecuted were innocent or even that it was 90%, or 80%, or 70%. Without retrying every case, we cannot know. The risk is that instead of unjust convictions, we end up with unjust acquittals, and we just would not know how many. The only way we could tell would be to put all cases through the courts, further dragging out the distress for many innocent people.
We have been faced with a dilemma: either accept the present problem of many people carrying the unjustified slur of conviction, or accept that an unknown number of people who have genuinely stolen from their post office will be exonerated and perhaps even compensated. I can therefore announce that we intend to bring forward legislation as soon as we can to overturn the convictions of all those convicted in England or Wales on the basis of Post Office evidence given during the Horizon scandal. The Government will in the coming days consider whether to include the small number of cases that have already been considered by the appeal courts and had convictions upheld.
We recognise that this is an exceptional step, but these are exceptional circumstances. As the House knows, people with convictions that have been overturned are offered a choice between having their compensation individually assessed or settling on an up-front offer of £600,000. As far as possible, we want to avoid guilty people walking away with hundreds of thousands of pounds of public money, but we cannot make the provision of compensation subject to a detailed examination of guilt. We have concluded that to ask the court to do that again would be unfair to individuals.
We cannot turn this into an administrative exercise. All we ask is that as part of their claims for compensation, postmasters sign a statement to the effect that they did not commit the crimes of which they are accused. Anyone subsequently found to have signed such a statement untruthfully will be putting themselves at risk of prosecution for fraud. I do not pretend to the House that that is a foolproof device, but it is a proportionate one that respects the ordeal that these people have already suffered. It means that an honest postmaster will have his or her conviction overturned and, just by signing one document, can secure compensation.
No one should take our decision as a criticism of the judiciary. The original decisions were taken in good faith in the understanding that prosecutions were properly conducted and that assertions about the robustness of the Horizon system were true. But, as I said earlier, these are exceptional circumstances and we need to act quickly and decisively. Time is one thing that we and the convicted postmasters do not have. Our arrangement will apply to all those convicted in England and Wales based on Post Office investigations, including those prosecuted by other bodies who relied on the product of those investigations; the fruit of a poisoned tree.
We have plenty more work to do on the solution. We need to prepare the legislation, and I want to discuss our solution with the advisory board, which I am meeting later this afternoon. Some prosecutions have been undertaken in Scotland and Northern Ireland, where justice is devolved. We are, of course, engaging with the Scottish and Northern Irish Administrations in respect of wrongful convictions in their jurisdictions. We will do those things as quickly as we can and keep the House informed.
The House will have heard that we are well aware of the imperfections of the solution. I am sure that that will attract some critics, but when they criticise I invite them to say what they would do otherwise. Would they leave many people suffering under the burden of unjust convictions for many years—perhaps forever—with no access to compensation, or would they create some administrative process for deciding innocence, which would be more onerous for the victims? I very much hope that the whole House will stand with the Government to deliver rapid justice to convicted postmasters who have been waiting much, much too long.
Some of the victims that I have spoken to say they need an individual exoneration rather than a grand pardon because they are understandably concerned about being bracketed with the very small number of people who will actually not be innocent. Will the Minister undertake to continue looking into this matter and address the quite proper concerns of the legitimate victims?
I would also welcome further elaboration on compensation. Fujitsu, which has played a central role in the scandal, is still at the heart of Government IT systems. Will Fujitsu will be required to meet some of the costs of the undoubtedly enormously expensive compensation that we are paying out? Finally, will the Government accelerate the investigations to convict those who are really guilty of causing the scandal by perverting the course of justice?
The other issue is getting people to come forward again, which has been one of the major problems in getting people to appeal their convictions. We see the solution that we have adopted as very much the lesser of two evils. Nevertheless, we are keen to discuss mitigations and safeguards with other Members of the House. I set out one earlier on—the requirement to sign a statement of innocence—and I am keen to work with him to look at other mechanisms that we can use to ensure that those people who get their convictions overturned and access compensation are actually innocent of the charges.
My right hon. Friend made the important point about Fujitsu, which has been raised many times. As he knows, part of what the Government did was to put in place a statutory inquiry, chaired by Sir Wyn Williams. It is due to complete by the end of the year, and, hopefully, it will report soon after. At that point in time, we will be able to assess more clearly who is actually responsible. Many people may have already formed a view on that, but we think it right that we follow a process to identify individuals or organisations who are responsible for the scandal. Of course, we would expect those organisations to financially contribute. There are financial and legal measures that we can take.
As regards individuals, it may be that there is sufficient evidence for the authorities to take forward individual prosecutions, and I think many in the House would welcome that.
It is unconscionable that, despite the landmark legal rulings, several years on people have still not been able to access the compensation that they are entitled to. We are all united in this House in wanting the sub-postmasters to be exonerated in full—it is important to say exoneration and not a pardon, because a pardon implies guilt that is forgiven—and for them to receive compensation with urgency. We recognise that that is not straightforward and the result may be imperfect, but this is an unprecedented scandal that requires an unprecedented response. The alternative of not acting is even less desirable. Labour stands ready to work with the Government to deliver a solution that achieves that long-awaited justice and compensation at pace.
May I thank the Minister for the ongoing conversations we have been having on this matter? Can he guarantee that compensation payments will immediately follow any exonerations under the terms of the compensation schemes as they stand today? Could he indicate a timescale for that? I know he appreciates that victims cannot continue to wait years for payments.
Given what the Minister said about the implications of a blanket exoneration, we will need to consider what safeguards might be necessary, to ensure that, as best as possible, public money does not flow into the pockets of those who are not entitled to it. He mentioned that people may be asked to sign a statement. Will that be drawn up consistently with the work of the advisory board?
Crucially, we discussed on Monday the cases that have now been identified from the pre-Horizon pilot scheme, which are identical to those coming out of Horizon. Will those cases be covered by any proposals that the Government bring forward? Any plan that does not cover all convictions will rightly not command the full support of the House.
As the sub-postmasters—they must surely get the credit for these extraordinary measures—have repeatedly said, what matters now is getting compensation to people swiftly. The whole House is united in its determination to deliver the justice, truth and compensation that has been denied and delayed time and time again.
From there, it should be a simple process: a statement needs to be signed, as the hon. Gentleman and I both referred to. We will work with the advisory board to ensure that the statement is appropriate. Following the signing of that statement, if people choose the detailed assessment route, that will be more complex because it will look at not just financial loss but personal impacts, such as on health or on other livelihoods, and consequential losses. If people choose the fixed sum award route of £600,000, that process can be very quick, which is one of the reasons why we have managed to complete 30 full and final settlements already, many using the fixed sum route.
The hon. Gentleman raised the issue of people using the pilot version of Horizon, of which we are cognisant. Every postmaster around the country has been written to and should be aware that the compensation scheme is available. We believe that these schemes cover that pilot period for Horizon. I am very happy to work with him and the right hon. Member for North Durham (Mr Jones) to ensure that the people they have identified have already been contacted. The good news is that, following the excellent ITV dramatisation, we have seen a good number of new cases come to light. We are keen for people to come forward, whether they have suffered convictions or financial detriment through shortfalls. We are keen to ensure that those people get access to compensation as quickly as possible.
When we stood here on Tuesday, I asked how long “some time” would be, and I am glad that things are progressing quickly, although with a note of caution—I totally understand the hesitation to introduce any kind of blanket Bill or whatever. We need to move things forward and keep up the momentum from the ITV series in the press, here and everywhere.
We also still need to listen to the victims. Only this morning, some of the postmasters said that we should all stop referring to compensation, but refer instead to financial redress. This is not compensation but money due to them, and we need to get it to them as quickly as possible. The hon. Member for Sutton and Cheam (Paul Scully) said that some people do not want to go anywhere near justice or the Post Office. We must encourage people to come forward. I am meeting constituents who were involved who have not officially approached me yet, and I am sure that many others across the House will be in exactly the same position.
Scottish law is different, as the Minister is well aware. The Cabinet Secretary for Justice made a statement yesterday, and said that the Scottish Government were looking at Fujitsu contracts, which is really important. I cannot speak for the Scottish Government, but I know there will be no hesitation in moving things forward. As chair of the all-party parliamentary group on post offices, I will write to the Crown Office and Procurator Fiscal Service in Scotland.
I am very happy to term this “redress”; it is only about putting people back where they would have been, and trying to make good what has happened to them. I understand what she says about compensation, but this is there to compensate people financially for losses and impacts on their lives.
I could not agree more that, as well as delivering compensation more quickly and fairly, the No. 1 thing we would like to happen is for more people to come forward. A simplified process that does not require postmasters themselves to file an appeal will mean that this is done more quickly. The routes to compensation have been simplified, and we very much hope that people will come forward. That seems to be our experience right now. We will continue to engage with the devolved Administrations to ensure that they have everything they need, as they may want to adopt similar measures.
The Minister knows that the advisory board has been tied in a Gordian knot for quite a few months, which is why we wrote our letter to the Justice Secretary before Christmas. He is right that this will be messy whichever way we do it, but it needs to be done, because people are still out there with convictions that need overturning. I welcome the advisory board having discussions later this afternoon and in the next few weeks on how things should take place, but I urge the Minister—I know he will—to engage with all political parties in this House. If we can get all parties’ support for the proposal, that will make it a lot stronger.
The point raised by my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) about the pre-Horizon schemes is important. I welcome the changes to the compensation, as they will speed things up for some victims, but in the case of those who have died whose convictions are overturned, will their estates be able to access compensation?
Yes, we are cognisant of the pre-Horizon pilot scheme, and we will keep working to make sure the people involved are included in compensation. Yes, if people have sadly passed away—over 60 have passed away waiting for compensation and justice—the compensation will go to their estate and therefore to their family. That is an assurance I can give him.
If people choose not to go down that route, and if they believe their losses are in excess of that, they can go down the full assessment route. We are trying to make that as rapid as possible. It is a process of alternative dispute resolution. Potentially, things can happen very quickly, but if that cannot be agreed then it goes to an independent panel for assessment. There is independence at every part of the process. People going down that route can get interim payments if they are needed, so that they do not suffer financial hardship. We are keen to make sure not only that people get a fair amount, but that it is also seen to be fair. Independence is an essential part of that process.
I agree entirely with the hon. Lady that we need to be proactive in our message to people about coming forward, and in our message from the House that we are working together and that this process is now much more streamlined. It will not even necessarily require sub-postmasters to make an application for their conviction to be overturned. That will happen much more quickly, and any access routes we have now for compensation will be made swifter and more rapid. I think those things alone will mean more people come forward. As I said, we have seen a good number of new people come forward. Hudgell, one of the solicitors involved in claims for some of the victims, have had, I think, 130 new people contact them on the basis of the TV programme and possibly because of the new actions we are taking to make sure compensation is more smoothly and easily available.
The right hon. Gentleman asked for a date. We have always intended to deliver all the compensation by August this year, and that is still the case. We would like to do it more rapidly, and for many people we will do it more rapidly, but not everything within the timescales is in our gift, because people are required to go down a full assessment route in order to compile a claim to which we can then respond. However, we have set ourselves some criteria relating to time and service levels to enable us to respond to claims in a timely fashion.
One of the benefits of the fixed-sum award route is that those who choose it do not need either the resources required for their own legal representation or the resources to be used on our side, or the Post Office side, for the assessment of claims. I am happy to continue to work with my right hon. and learned Friend and with the advisory board to try to make the whole process more streamlined and more rapid, which is a challenge that we will go on trying to meet whenever we can.
Of course, during this process we have learnt things, and things have happened that we did not expect. We did not expect it to be so difficult for people to overturn convictions after the overturning of the first convictions, and we did not expect it to be so difficult to assess the damages and losses. We have tried at every point to accelerate compensation. We introduced the fixed-sum award last November, long before the TV series was broadcast, and before then there were measures involving tax treatments. We also started to look at different ways of overturning convictions long before the TV series was aired. So it is not the case that the series, excellent though it is, has resulted in these changes.
I think it is fair to say that the whole House and the whole country were shocked by what they saw on television, and that has made it easier to push certain developments forward more quickly, but I believe that we would have arrived at this position in any event. Nevertheless, I am glad we are here today moving things forward at this pace.
The key point to bear in mind is that, owing to the number of people who have refused to come forward, Parliament has an obligation to act. In the case of existing appeals, the matter can be dealt with by the Court of Appeal in respect of the quashing of any convictions, pursuant to an Act of Parliament, but the key challenge lies in all the people who are not in the court system. Will my hon. Friend work with me and others to ensure that the system he envisages—I think he is talking about statutory declarations, which would perhaps come under section 5 of the Perjury Act 1911—is got right in order to avoid further disincentives for innocent people to clear their names and, in the words of judges up and down the country, “walk from the court without a stain on their character”?
Fujitsu is a multimillion-dollar company with numerous Government contracts, including a number with the Ministry of Defence. It has persistently, for years, been reluctant to admit to the weakness in its system. Does the Minister agree that Fujitsu now has a moral duty, if not a directly legal one, to put right that wrong? Should we not review all its Government contracts, and if it will not do the right thing—which it should—should we not consider suspending them?
Will the Minister assure me that he will not allow any delay in implementing the proposals in Northern Ireland? Excuses are made all the time, for example, that there is no devolved Assembly in Northern Ireland. No devolved Minister had a role in this, therefore there is no role for them with regard to the victims. Will the Minister sort things out for them as quickly as possible?
I thank the Minister for the heavy lifting he has done in the 15 months he has held his post. I also commend the Lord Chancellor for his work behind the scenes. He will have taken advice and guidance from the Lady Chief Justice. Will the Minister say what her guidance was? It is an exceptional process, which we all support, but we would like to know what her guidance was.
In 2006, I was instructed as a defence lawyer. We must never again get ourselves into a situation whereby an organisation such as the Post Office brings private prosecutions, and is the complainant, the criminal investigator and, indeed, the prosecutor. Will the Minister make a statement about when the Government intend to prevent the Post Office from prosecuting any matter ever again?
We want to ensure that this never happens again, and the hon. Gentleman is right that private prosecutions played a part. He asked for a statement and I am sure that my right hon. and learned Friend the Lord Chancellor will make one at some point. My right hon. and learned Friend has expressed an interest in, and some concerns about, private prosecutions in the UK, as has the Justice Committee. I am therefore sure that he will come back to the House on that at some point.
I was never Minister for the Post Office, but I remember being asked, as a Minister in the Department, to cover for an absent Minister. I refused to just read out the speech I had been given and asked for a day of proper briefings from officials. When I asked to meet Paula Vennells, I was told that she refused to meet me without her lawyer.
The saga raises important issues about scrutiny, accountability and responsibility in public office and public administration. They are difficult questions that the House must tackle. Will the Prime Minister, the Deputy Prime Minister, the Lord Chancellor and the Cabinet Office therefore look at the wider lessons from this appalling scandal about the failures of accountability and scrutiny in our system of government, and about this House’s ultimate responsibility to the people of this country to ensure that the Government serve the people, not the other way round?
On the point that my hon. Friend the Member for North Norfolk (Duncan Baker) made, how much money was stolen from the postmasters? Will the Minister consider some sort of corporate fraud action to get the money back? The money was taken off them and us, and we should get it back from the company that took it.
On scrutiny, many Ministers and officials will ask themselves questions about what happened. It is our job to ask the key questions at the right time and not necessarily to take the first answer we are given. We should push back and ensure that we get to the bottom of the issue. There is no question but that there were failures. I will not identify who failed, but many people will be asking themselves serious questions. The inquiry may well identify where we could have done things better.
Individual sub-postmasters lost their reputation, and they can get compensation for that, but the right hon. Lady is right to say that the post office network itself may have suffered some loss of reputation. I still believe that our post office network is hugely valued, and that citizens and constituents hold it in very high regard. To make sure that we have suitable post office provision around the country, the key thing is to ensure that post offices are financially viable and sustainable. We are working very hard on that. For example, we are encouraging the Post Office to take a firmer line in negotiations on the banking framework, which is a significant revenue opportunity for the network, and on parcel hubs. We see a bright future for the network, but it is vital that we draw a line under this scandal before we secure that future.
My second question looks to the future. How do we stop this happening again? I am very conscious of the big increase in the use of artificial intelligence. It is possible to go back to the Horizon system and see where these, in some cases, malicious incidents took place but, with artificial intelligence, it will be much harder to do that. Can the Minister assure me that checks will be made in any Government systems, especially those using artificial intelligence, to ensure that humans are not unjustly blamed for artificial intelligence errors that could lead to a similar scandal in future?
We are discussing mental health support for individuals and, potentially, families with the advisory board. The compensation schemes very much take mental health into account, and assessing those impacts is one of the reasons why it takes a while to make sure people receive proper redress.
My hon. Friend raises an interesting point about AI, in which I know he is keenly interested. We should look carefully at the use of AI in prosecutions, and I am sure my right hon. and learned Friend the Lord Chancellor is doing so.
There may be people out there who are frightened to come forward because they have signed non-disclosure agreements. Is it possible for us to tell the Post Office, “Come on, cough up. Let us know who has not been contacted”? Letters could then be written to those people, perhaps by the advisory board, to invite and encourage them to come forward. We need to give them the confidence to do so, because they might be frightened about being approached by the Post Office. I am sure that anyone who signs one of the agreements that the Minister mentioned will want an assurance that they will never again be pursued by the Post Office.
Some people are nervous about coming forward. Various bodies, including the Criminal Cases Review Commission, have written to people with convictions. There is work to ensure that anybody who might have suffered as a result of this scandal is properly communicated with by someone they trust. I am very happy to talk to the hon. Gentleman and the advisory board about whether we have done enough and whether we could do more.
We think the inquiry is the right route to expose the evidence. Of course, our prosecutors can look at the evidence before the inquiry at any point. Anybody can see what is happening in the inquiry. We hope that the inquiry identifies those responsible, and that suitable action is taken against those people and organisations.
The Department for Business and Trade has learned lessons from what happened, and I think there is now a much better oversight and governance relationship between the Department and the Post Office. That is too late for many people, of course, but it is not too late to find the answers that the hon. Gentleman is looking for.
The hon. Lady is right to challenge us on the timeframes. The timeframe for passing legislation in this House is always somewhat uncertain, because that is not all within the Government’s gift, as legislation passes through both Houses. We are keen to legislate as quickly as possible, but it is likely to take a matter of weeks, because there is some work we need to do to make sure that that legislation is in the right place. As for timescales for full and final compensation across all schemes, we are hoping to do that by August. Again, we are not in charge of all those timescales, because the process requires people who want to go through the full assessment route to compile and submit their claim. We will then be able to respond to it as quickly as possible. As for the answers she is looking for, which we all want to see, the inquiry is due to conclude by the end of the year and we would expect it to report shortly after—that should give us those answers.
Notwithstanding the remarks of my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill), it occurs to me that important information has emerged in evidence during the process of prosecutions so far. The Minister, if I understood his response correctly, referred to “malevolence” in behaviour. Will he ensure that whatever process unfolds will contain a mechanism by which information that would be useful for consideration in further action will be gathered and collated, given that people will not necessarily have the mechanism of a court case and a legal testing of their situation?
On financial redress, does the Minister agree that it is important that those who have been convicted should get legal advice? If, as I suspect, those prosecutions were malicious ones, the damages to which those people are entitled could be very hefty and they would be unwise to accept an offer from the Minister, generous as it might be, before they had received legal advice about what they would be entitled to if they could prove that the prosecutions were malicious.
“The whole affair has made me ashamed of the Post Office hierarchy, the Government and the UK legal system.”
What are the Minister and the Government going to do to restore public trust? Will he expand on the timescale of action to ensure that justice and the fullest redress is given to all those affected?
Yes, we should identify those responsible and hold them to account, be they organisations, like Fujitsu, or individuals. The significant compensation bill is currently funded by the taxpayer, so it seems only right and reasonable that any organisations or companies responsible for the scandal will also contribute towards that compensation.
The group litigation order scheme was brought forward by the Government and we have already settled 21 cases, in which people have received full and final compensation. People can also get interim payments through that scheme and, as I announced today, rather than going down the route to full assessment they can choose a fixed-sum award of £75,000. That scheme is available to the hon. Lady’s constituent and they can take advantage of it.
The Government already offer significant financing for the Post Office—about £2.5 billion over the last 10 years—in addition to other financial commitments we have made for other matters, such as rebuilding the IT system. We feel that the post office network has a bright future, particularly in areas such as access to cash, the banking framework and parcel hubs, and we see the remuneration opportunity improving in future years.
As highlighted by the ITV show, the 555 worked tirelessly for justice, and that, of course, opened the door for so many others, but they feel they are being penalised for taking this litigation forward, with compensation still not being paid to so many. As well as others, the Post Office needs to be held responsible for the part it has played in this scandal at every stage, including the lies and the blocking of justice, yet it is the Post Office and the Government’s expensive lawyers who are currently litigating every case. I have to ask whether that is right.
Will the Minister look to remove the Post Office from all the roles that it currently plays in relation to compensation decisions and, instead, put in place a more independent arm’s length body that will deliver full and fair compensation to all?
The hon. Member is wrong to talk about the cases being litigated against; the process is done by dispute resolution with my Department, not with the Post Office. If that cannot be agreed, it is sent to an independent panel, which will then recommend what award should be given. The Post Office is not involved and independence is at the very heart of this process, so I believe that her constituents will get full and fair outcomes, but we want to make sure that is done as quickly as possible, and we are working on that on a daily basis.
Can the Minister put something on the record to give reassurance to those people who have been deliberately and maliciously misled by the Post Office into silence? The Post Office should not be able to do that, and those affected should be able to have their story told and to get justice.
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