PARLIAMENTARY DEBATE
Post Office Redress and Funding - 18 December 2024 (Commons/Commons Chamber)
Debate Detail
No one in this House—no one in this country—will have failed to be moved by the plight of postmasters caught up in the Horizon scandal. The fact that they suffered so much over so many years is both unconscionable and inexcusable. The Government are determined to do right by them and to learn from the mistakes of the past. That is why, before the election in July, we promised to ensure swift and fair redress for postmasters affected by the Horizon scandal and, in the past five months, we have made significant progress.
To date, compensation has more than doubled since the Government took office, with £499 million paid to 3,300 victims. Of that amount, £79 million has been paid to 232 people from the Horizon convictions redress scheme, which we set up in July. As of 29 November, the Ministry of Justice had notified more than 520 people in England and Wales that their convictions have been quashed by the Post Office (Horizon System) Offences Act 2024. The relevant justice authorities in Scotland and Northern Ireland are also continuing to notify individuals within their jurisdictions.
While the progress we have made is positive, we know there are still complex cases to resolve, and we need to speed up other parts of the redress process. Many postmasters are still yet to be compensated or have their cases reconsidered. I am conscious that for the victims of the Horizon scandal, justice delayed is justice denied, and that our responsibility in Government is to work to make the compensation process as effective as possible. That is why we have asked the Post Office to write to over 16,000 former postmasters, encouraging them to come forward if they believe they have a genuine claim. I can confirm those letters have been sent. We want to ensure that every postmaster who is eligible for redress under the Horizon shortfall scheme has the opportunity to apply for it.
On more complex cases, notably in the group litigation order and the Horizon convictions redress scheme, for which my department is, and should be seen to be, directly responsible, we have agreed a new target for 90% of challenge cases in the GLO and HCRS to receive a substantive response within 40 days. We have moved in additional staff, and Sir Gary Hickinbottom, who is already assisting us with the overturned conviction cases, has been appointed chair of the independent panel for the HCRS.
We are looking again at the arguments for providing additional redress to postmaster family members who were affected by the scandal, and to the employees of postmasters. I will report back to the House on that in due course. The Horizon compensation advisory board recommended the establishment of an appeals process for the Horizon shortfall scheme that is independent of the Post Office and Government, and we accepted that recommendation in September. We are in the process of assembling a team of independent external lawyers to help deliver the appeals process. We expect that contract to be awarded in January. I will be able to provide a further update on the appeals process early in the new year.
There are still concerns about the responsibility of the Post Office to deliver the Horizon shortfall scheme and the overturned convictions scheme. The Government are considering the merits of my Department taking over that responsibility, but the benefits of such a move must clearly outweigh the potential disruption. We are carefully considering what intervention we may take.
Thanks to a small group of postmasters and their families coming forward this year, as well as to parliamentarians including Lord Beamish, we now know that issues at the Post Office went beyond Horizon, and that some postmasters may have been affected by earlier systems such as Capture. The Government have responded with swift, significant action. The Kroll investigation published its report into Capture on 30 September, with a further addendum made on 18 October. From that report we have concluded that there are postmasters who may have fallen victim to flaws in Capture software.
Most of us will not be able to comprehend fully what it was like to be accused of mistakes never made, ill intent never harboured and crimes never committed. Some postmasters have told us that, like victims of the Horizon scandal, they were shunned by their local communities—by their customers, friends and neighbours. I speak on behalf of the whole Government in expressing how sorry I am for what those postmasters and their families have gone through. For that and all they were forced to endure, they deserve not just redress but the restoration of their good names.
Uncovering exactly what happened in each case will be a challenging exercise given the passage of time and the lack of records and evidence. However, we are keen to apply the lessons that we have learned from previous redress schemes, and to take account of the needs of this group of victims. The Government will develop our proposals through engagement with postmasters and other key stakeholders, such as the Horizon compensation advisory board and legal experts. Over the coming months, we want to determine the scope of the financial redress and the eligibility criteria, so that we can bring both redress and closure to the impacted postmasters and their families. I expect to provide a further update to the House on that matter in the spring.
Next year, we also expect to receive Sir Wyn Williams’s report. The Post Office Horizon IT inquiry has reviewed the oral evidence that was submitted to it over the course of the last two years. I am thankful to Sir Wyn Williams for his excellent chairing of the inquiry, which closed yesterday. I am also thankful to the Horizon compensation advisory board for the report that it published earlier this year. In case Members are not aware, the board is recommending that a new independent body be set up to deliver any future redress schemes on behalf of the Government, as well as to act in a role similar to that of an ombudsman. The goal is, of course, to reduce the chances of future scandals—or at least to expose them more quickly.
The Government welcome those recommendations. Any recommendation that might prevent harm, or at least help the Government be more responsive to it, is worthy of serious consideration. The potential impact of such a body would be wide ranging, with potential implications for existing redress schemes in the NHS, which need to be considered alongside other issues. We will therefore take time to consult and consider in particular the view of the Williams inquiry before reaching a conclusion. We intend to give a full response within six months of the publication of the Williams inquiry report.
For too long, decisions about the future of the Post Office have been put off. That neglect has allowed significant issues at the heart of the company to grow and take root. As previously set out, we will publish a Green Paper in the first half of next year to seek the public’s views, insights and experiences to help shape the future of the Post Office. In the meantime, we are taking steps to continue to support the post office network and the important services it provides. I can announce that we are providing a further £37.5 million to subsidise the post office network this year. The interim chair of the Post Office, Nigel Railton, is rightly shifting the focus of the business from headquarters to postmasters; the Post Office is also reviewing its costs, as its financial position continues to be challenging. He has announced ambitions for a new deal for postmasters, and I am pleased that the Post Office is going to make an immediate one-off payment to postmasters to increase their remuneration, in recognition of the pressures that postmasters face. That payment is expected to be delivered this month.
We are working with the senior leadership of the Post Office on future opportunities, beginning with banking, so that the company can increase its product offers and commercial revenue and reduce its costs in communities across the UK. Together, we hope these steps will enable the Post Office to move forward, working better with its postmasters and better serving the needs of its customers. This Government are attempting to fix the foundations, deal with the injustices of the past, and invest in a different future for the Post Office so that it can sit at the heart of our communities as a trusted institution once more. I commend this statement to the House.
As shadow Secretary of State, I can say on behalf of every Conservative Member that we are committed to working collaboratively with the Government to deliver the appropriate redress to all those affected by the Horizon scandal and any issues relating to the Capture software. Many of the actions on which the Minister has updated the House were initiated by my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake). As my hon. Friend has said, Ministers will have our full support in the swift delivery of redress and the overturning of the convictions of those affected by this wide-ranging scandal. The Conservative party welcomes the redress schemes that have been implemented to remedy the gross miscarriages of justice that have affected hundreds of families across the country. Our only focus now must be on processing claims to get those schemes completed as quickly as possible.
There remain a number of questions following the Minister’s statement that I would be grateful if he would clarify. I understand that the Kroll report did not publish any conclusions about the safety of criminal convictions. The Horizon advisory group had already recommended that the Government introduce legislation to overturn the convictions of postmasters who fell victim to the Capture scheme. I read that the Government have deferred to the Criminal Cases Review Commission on that matter. Could the Minister update us on what conversations he has had with the CCRC in relation to the process of overturning convictions?
The redress that the Minister has announced is welcome news, but there remains a lack of specific detail on how the affected parties can expect progress. Will he set out a timeline for the redress of postmasters affected by Capture? He said that he has instructed the Post Office to write to 16,000 potentially affected former postmasters, urging them to come forward if they believe they have a claim to make, and that those letters have been sent. Can he confirm when they were sent?
Is the Minister able to provide an update on his conversations with Fujitsu? How much has Fujitsu contributed to date? What meetings has he had, and where are we on that important aspect of this process? It was concerning to learn back in September that only a small handful of claims had been offered redress through the Horizon convictions redress scheme and, at that point, no full and final settlements had been made through that scheme. Could the Minister reassure the House that the Government are not just opening the door to those claims, but managing the process of getting them heard, resolved, and ultimately redressed? I was pleased to hear that additional staff have been seconded to facilitate the compensation scheme—I welcome that and thank the Minister—but can he confirm how many have been seconded and from where, and can he give the House an assurance that they will remain seconded for as long as is necessary?
Finally, we welcome the Government’s announcement of £37.5 million of network subsidy. It was announced in yesterday’s written ministerial statement, and it is indeed welcome news. The Minister said that it is for this year, so would he clarify whether that relates to the period up until the end of March 2025? What certainty is there of funding beyond that period so that we can all proceed on a sustainable footing? Is it only for this year, or does it also cover the fiscal year 2025-26?
The shadow Secretary of State referenced the Kroll report. As he and, I suspect, other Members of the House who have followed this issue closely will be aware, Kroll did not take a specific view on convictions. We are aware that a small number of sub-postmasters—those who believed they were victims of using the Capture software, given the shortfalls it generated and the way they were treated by the Post Office as a result—have referred their claims to the Criminal Cases Review Commission. We have instructed the Post Office to work at speed to review what evidence it can provide to the CCRC to help it make decisions on the safety of those convictions. Similarly, the Scottish Criminal Cases Review Commission is looking at a number of cases, and we have similarly instructed the Post Office to co-operate with it as quickly as it can.
On Capture redress, yesterday we met sub-postmasters who have campaigned on Capture, and indeed Lord Beamish, to update them on the steps we will take. We will work at pace. As I said in my statement, we face a significant challenge with the amount of evidence available. For example, no central record has as yet been found of the number of Capture users or of who they were. We are nevertheless going to be working to design a redress scheme. We will consult sub-postmasters and the Horizon compensation advisory board. As I have said, I will bring forward an update on where we have got to by next spring.
On the 16,000 letters that the Post Office has sent out, I can confirm that they have gone out very recently—the shadow Secretary of State will forgive me if I do not have the exact dates. He rightly aired again the concern about the responsibility of Fujitsu, which is felt across the House. I am sure that he will recognise that we need to wait for Sir Wyn Williams’s inquiry to report, to give us a better understanding of the scale of Fujitsu’s responsibilities and, therefore, its potential liabilities. We have said that we will respond to the inquiry’s recommendations at pace, and certainly within six months. I am sure that he will opine on Fujitsu, and we will respond accordingly.
On the Horizon convictions redress scheme, the then Minister of State at the Ministry of Justice, my right hon. Friend the Member for Swindon South (Heidi Alexander), and I had the pleasure of appearing before the Business and Trade Committee, chaired by my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), to update it on progress in overturning the convictions following the legislation last summer. She committed the Ministry to completing its work of assessing the cases by the end of January, and I understand that it still intends to do so. We have already paid out some £79 million as part of our responsibilities to provide redress to those whose convictions were overturned.
Lastly, on the network subsidy uplift, the shadow Secretary of State will understand that the money is just for this year. Spending review discussions are taking place across Government, and the Post Office is an active part of those discussions.
Honest, hard-working people had their lives totally wrecked by this scandal, and it is a great shame that it happened over a number of years, and that there was dither and delay over it for far too many years. I welcome the steps that he has outlined this afternoon. I welcome the suggestions made to him about an independent body for compensation. However, this scandal must never happen again. One way this Chamber could ensure that is the case is by having a duty of candour on officials, as the Liberal Democrats have called for. I hope he will give that serious consideration, to stop such a scandal ever happening again. Finally, there is a real opportunity, should the Government choose to take it, to set up an office for whistleblowers through the Employment Rights Bill, which is currently making its way through the House.
May I gently ask the Minister—this may go slightly outwith his Department’s responsibilities—whether there is any news or progress about the question of prosecutions for criminal conspiracy? That is something I have raised before. That is one thing that might act as a deterrent to this sort of terrible behaviour by a gilded, self-selecting class of people who think that their institutional importance is greater than truth or justice.
Specifically on prosecutions, the right hon. Member may be aware that the Metropolitan police has confirmed that it has established a unit and is looking at a number of issues to do with how the Post Office operated. He will understand that, quite rightly, Ministers are not involved in those decisions, but the information that I have set out is publicly available. We will obviously all have to wait to see what happens in that regard.
On the question of automation, we encouraged Nigel Railton and the senior leadership at the Post Office to look at what further steps they can take to speed up the consideration of claims under the Horizon shortfall scheme, where there is particular pressure given the numbers that are still coming forward. I welcome the fact that they are coming forward, but we need faster action to get through them and to support all those whose claims are being accepted to get redress under the Horizon shortfall scheme.
The fixed sum payment that we announced in September of some £75,000, which sub-postmasters can choose to accept in full and final settlement of their claim, has been welcomed and accepted by a significant number of sub-postmasters. That is helping to speed up redress under the Horizon shortfall scheme. I accept that there is more to do, and we are looking at what else we can do in that regard.
Bill Presented
Public Procurement (British Goods and Services) Bill
Presentation and First Reading (Standing Order No. 57)
Sarah Champion presented a Bill to make provision about public procurement in respect of British goods and services; and for connected purposes.
Bill read the First time; to be read a Second time on Friday 24 January 2025, and to be printed (Bill 153).
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