HANSARDCommons30 Jun 20222 contributions

Business, Energy and Industrial Strategy

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Post Office: Compensation for Horizon scandal

The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
ConservativeSutton and Cheam
As the House is aware, the Post Office Horizon scandal, which began over 20 years ago, has had a devastating impact on the lives of many postmasters. Starting in the late 1990s, the Post Office began installing Horizon accounting software, but faults in the software led to shortfalls in branches’ accounts. The Post Office demanded sub-postmasters cover the shortfalls, and in many cases wrongfully prosecuted them between 1999 and 2015 for false accounting or theft.
The High Court Group Litigation Order (GLO) case against the Post Office brought by 555 postmasters exposed the Horizon IT scandal which had seen many postmasters forced to “repay” to Post Office sums which they had never received. In March 2022, the Chancellor announced that further funding would be made available to ensure members of the GLO will receive similar levels of compensation to that which is available to their non-GLO peers.
Today, I am announcing that the Government intend to make an interim payment of compensation to eligible members of the GLO, who are not already covered by another scheme, totalling £19.5 million. Together with the share of the December 2019 settlement that we understand was distributed to the GLO postmasters, this brings the total of compensation to approximately £30 million. I hope this will go some way in helping many postmasters who have, and still are, facing hardships.
In parallel, we are working towards delivering the final compensation scheme for the GLO and will be appointing Freeths to access the data and methodology they developed in relation to the distribution of the 2019 settlement. Freeths represented the GLO claimants and have vital knowledge and expertise based on their involvement in the case. This will allow us to work at pace on the design of a scheme.
Furthermore, I can confirm that members of the GLO group will be able to claim reasonable legal fees as part of participating in the final compensation scheme. I hope that this will allay any concerns that they might have about meeting the costs of seeking legal advice and support when applying to the scheme.
Overturned historical convictions
I am pleased to report that interim payments for overturned historical convictions are progressing well. As of 29 June, there have been 75 overturned convictions, with the most recent convictions being overturned in recent weeks. The Post Office has received 74 applications for interim payments including several new applications in recent weeks. Sixty-seven offers have been accepted by and paid out to claimants, totalling nearly £7 million paid out in compensation so far.
For those postmasters who have already submitted quantified claims, we are working with Post Office to agree part payments of agreed elements of claims, such as loss of earnings, wherever possible, and will continue to do so with additional claims which are submitted. Taking this step should enable us to avoid undue delays in awarding partial compensation while outstanding matters are resolved.

GB Warm Home Discount (Scotland) Scheme

The Minister for Energy, Clean Growth and Climate Change (Greg Hands)
ConservativeChelsea and Fulham
My noble Friend the Parliamentary Under-Secretary of State for Business, Energy and Corporate Responsibility (Lord Callanan) has today made the following statement:
The Government have today laid draft affirmative regulations for a GB warm home discount scheme in Scotland to run from 2022-23 until 2025-26.
The scheme, with increased funding of around £13 million and totalling £49 million in 2022-2023, will provide energy bill rebates worth £150 to over 280,000 low income and vulnerable households during winter, when they need it most.
WHD provides direct energy bill support, in the form of a rebate on energy bills, for fuel poor, low income and vulnerable households. It is a key policy in the Government’s programme to tackle fuel poverty and reduce energy costs for low income households. Since its launch in April 2011, WHD has provided over £3.3 billion in direct support to households in Great Britain. Now more than ever, this rebate is needed to help low income and vulnerable households with their energy costs. The scheme complements the Government’s £37 billion worth of measures this year to support households with rising energy bills and the cost of living.
The WHD is set in legislation and requires energy suppliers above a certain size to participate. While the costs of the scheme are borne by energy suppliers and, ultimately, their customers, Government set the overall spending target. In the 2020 Energy White Paper, the Government committed to extending the warm home discount (WHD) to 2025-26 and increasing its value to £475 million (in 2020 prices) across Great Britain. Since then, we consulted on proposals for England and Wales, the details of which are set out in the Government response to consultation, published on 1 April and for which the regulations have been approved by both Houses. Similar proposals could not be replicated in Scotland, because the Valuation Office Agency (VOA) whose data we will use to identify homes which are high cost to heat, does not collect that data in Scotland. The Scottish Assessors (the Scottish equivalent of the Valuation Office Agency) do not collect the same data in Scotland.

Post Office: Compensation for Horizon scandal

The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)

ConservativeSutton and Cheam

As the House is aware, the Post Office Horizon scandal, which began over 20 years ago, has had a devastating impact on the lives of many postmasters. Starting in the late 1990s, the Post Office began installing Horizon accounting software, but faults in the software led to shortfalls in branches’ accounts. The Post Office demanded sub-postmasters cover the shortfalls, and in many cases wrongfully prosecuted them between 1999 and 2015 for false accounting or theft.

The High Court Group Litigation Order (GLO) case against the Post Office brought by 555 postmasters exposed the Horizon IT scandal which had seen many postmasters forced to “repay” to Post Office sums which they had never received. In March 2022, the Chancellor announced that further funding would be made available to ensure members of the GLO will receive similar levels of compensation to that which is available to their non-GLO peers.

Today, I am announcing that the Government intend to make an interim payment of compensation to eligible members of the GLO, who are not already covered by another scheme, totalling £19.5 million. Together with the share of the December 2019 settlement that we understand was distributed to the GLO postmasters, this brings the total of compensation to approximately £30 million. I hope this will go some way in helping many postmasters who have, and still are, facing hardships.

In parallel, we are working towards delivering the final compensation scheme for the GLO and will be appointing Freeths to access the data and methodology they developed in relation to the distribution of the 2019 settlement. Freeths represented the GLO claimants and have vital knowledge and expertise based on their involvement in the case. This will allow us to work at pace on the design of a scheme.

Furthermore, I can confirm that members of the GLO group will be able to claim reasonable legal fees as part of participating in the final compensation scheme. I hope that this will allay any concerns that they might have about meeting the costs of seeking legal advice and support when applying to the scheme.

Overturned historical convictions

I am pleased to report that interim payments for overturned historical convictions are progressing well. As of 29 June, there have been 75 overturned convictions, with the most recent convictions being overturned in recent weeks. The Post Office has received 74 applications for interim payments including several new applications in recent weeks. Sixty-seven offers have been accepted by and paid out to claimants, totalling nearly £7 million paid out in compensation so far.

For those postmasters who have already submitted quantified claims, we are working with Post Office to agree part payments of agreed elements of claims, such as loss of earnings, wherever possible, and will continue to do so with additional claims which are submitted. Taking this step should enable us to avoid undue delays in awarding partial compensation while outstanding matters are resolved.

GB Warm Home Discount (Scotland) Scheme

The Minister for Energy, Clean Growth and Climate Change (Greg Hands)

ConservativeChelsea and Fulham

My noble Friend the Parliamentary Under-Secretary of State for Business, Energy and Corporate Responsibility (Lord Callanan) has today made the following statement:

The Government have today laid draft affirmative regulations for a GB warm home discount scheme in Scotland to run from 2022-23 until 2025-26.

The scheme, with increased funding of around £13 million and totalling £49 million in 2022-2023, will provide energy bill rebates worth £150 to over 280,000 low income and vulnerable households during winter, when they need it most.

WHD provides direct energy bill support, in the form of a rebate on energy bills, for fuel poor, low income and vulnerable households. It is a key policy in the Government’s programme to tackle fuel poverty and reduce energy costs for low income households. Since its launch in April 2011, WHD has provided over £3.3 billion in direct support to households in Great Britain. Now more than ever, this rebate is needed to help low income and vulnerable households with their energy costs. The scheme complements the Government’s £37 billion worth of measures this year to support households with rising energy bills and the cost of living.

The WHD is set in legislation and requires energy suppliers above a certain size to participate. While the costs of the scheme are borne by energy suppliers and, ultimately, their customers, Government set the overall spending target. In the 2020 Energy White Paper, the Government committed to extending the warm home discount (WHD) to 2025-26 and increasing its value to £475 million (in 2020 prices) across Great Britain. Since then, we consulted on proposals for England and Wales, the details of which are set out in the Government response to consultation, published on 1 April and for which the regulations have been approved by both Houses. Similar proposals could not be replicated in Scotland, because the Valuation Office Agency (VOA) whose data we will use to identify homes which are high cost to heat, does not collect that data in Scotland. The Scottish Assessors (the Scottish equivalent of the Valuation Office Agency) do not collect the same data in Scotland.