Horizon: Sub-Postmaster Convictions

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy what steps the Government are taking to support sub-postmasters wrongly convicted in the Post Office Horizon scandal.

I wish you a very happy birthday, Mr Speaker, and many happy returns.

Happy birthday, Mr Speaker.

I have listened to a number of postmasters’ stories personally, and I saw the recent “Panorama” programme. It is impossible to ignore the negative impact that the Horizon dispute and court case have had on affected postmasters’ lives, livelihoods, financial situations, reputations and, for some, as we know, their physical and mental health.

Convicted claimants seeking to overturn their convictions are going through a further process with the Criminal Cases Review Commission, which has the power to refer cases to the Court of Appeal to consider whether any of the convictions are unsafe. As the hon. Lady will appreciate, it is important that the Government do not seek to influence this process or comment on any individual cases. I can confirm, though, that the Post Office is co-operating with the CCRC to the fullest extent and the Government are monitoring this. Forty-seven of the 61 CCRC cases have now been referred to the Court of Appeal, and it is for the courts to decide whether the convictions are unsafe.

Let me acknowledge the strength of feeling on this matter on both sides of the House, which was evident in the debates I participated in earlier this year and in the correspondence I have had from many Members. That is why the Government are committed to establishing an independent review to consider whether the Post Office has learned the necessary lessons from the Horizon dispute and court case, and to provide an independent and external assessment of its work to rebuild its relationship with its postmasters. Full details of the terms of reference for that independent review are set out in a written ministerial statement that I laid in the House this morning. We are keen to see that review launched as soon as possible, and we are in the process of identifying a chair to lead the work of the review.

The Post Office Horizon scandal may well be the largest miscarriage of justice in our history: 900 prosecutions, each one its own story of dreams crushed, careers ruined, families destroyed, reputations smashed and lives lost—innocent people bankrupted and imprisoned. Does the Minister agree that Monday’s “Panorama” adds to the sense of a cover-up on a grand scale in the Post Office, a trusted national institution—and all because of the failings in the Post Office Horizon system?

For over a decade, the Justice for Subpostmasters Alliance campaigned to get at the truth, but the Post Office denied all wrongdoing, imposing huge lawyers’ fees on the claimants. Mr Justice Fraser’s High Court ruling in December paved the way finally for justice for some, but the mediated settlement means the truth remains hidden. Does the Minister agree that there can be no justice without truth?

So many questions remain unanswered. When did the Post Office know that the Horizon system could cause money to disappear, and what responsibility did the developer, Fujitsu, have? What did Ministers, to whom the Post Office is accountable, do, and what did they know? Who was responsible for innocent people going to jail? Have they been held accountable? Will all the victims be properly compensated?

Three months ago, the Prime Minister committed to a public inquiry, but we now hear that that is to consider whether the Post Office has learned the necessary lessons. We need an inquiry not simply to learn lessons but to get to the truth. Only a judge-led inquiry can do that, with the Post Office compelled to co-operate. Will the Minister now agree to the judge-led inquiry we need? It is the very least the victims deserve.

We need answers, not more delay. We will not rest until we get that and justice for all those wronged in this scandal.

I welcome the hon. Lady to her place, and I appreciate her comments. A public inquiry, according to Jason Beer QC, one of the leading experts on this, talks about what happened, why it happened and who is to blame, and what can be done to prevent it from happening again. This independent review, chaired by someone independent of both the Government and the Post Office, will indeed look to do that—to understand and acknowledge what went wrong in relation to the Horizon system by drawing on the evidence of those people who, as we have discussed, have been wronged in this situation, using both Mr Justice Fraser’s judgment and words and his own evidence that he will call upon.

The Government want to be fully assured—I want to be fully assured—that the right lessons are learned for the future and concrete changes have taken place at Post Office Ltd to ensure that this is not repeated. We want to be sure that, through this review, there is a public summary of the failings that occurred at Post Office Ltd, drawing on the judgments and, as I say, listening to those who have been most affected. That is the purpose of the independent review we are in the process of setting up.

It is absolutely right that we acknowledge the injustices that were done at the time. I have spent a bit of time in post offices in my time, and I remember having conversations with sub-postmasters and sub-postmistresses in which they acknowledged to me that they could not get their books to balance at the end of particular days. They were really worried about it at the time. It is worth remembering that the post office network is made up of sub-postmasters, and they need our support at this moment in time. What can the Department do to ensure that our sub-postmasters and sub-postmistresses who are working around the country have the ability to continue while the Horizon scandal is taking place?

I am grateful to my hon. Friend for that question. The Government provided nearly £2 billion for the period 2010-18 and are investing a further £370 million in 2018-21 in the transformation of the business. A negotiated agreement was secured with all 28 UK banks in 2019 and took effect in 2020. That has resulted in a significant increase in the overall fees received by the Post Office from the banks, and that will rise further if transaction volumes continue to grow. We have also encouraged the Post Office to strengthen its relationship with postmasters and postmaster training to foster a stronger commercial partnership. We recently put in place personalised support for postmasters. If we are going to get the future relationship with postmasters right, we have to tackle the injustices that have happened in the past, but we also have to rebuild, with the new management in the Post Office, trust and training and respect for the sub-postmasters of the future.

We now come to the Scottish National party spokesperson, Patricia Gibson, who has one minute.

We can all agree with the Minister that the reputations, mental health and lives of the victims of this scandal have been ruined. Alan Bates, the former sub-postmaster who led the legal case against the Post Office, has been clear that the Post Office has not changed. It is six months since judges found major issues, including an excessive culture of secrecy and confidentiality generally in the Post Office, but specifically relating to Horizon, so can the Minister explain why we still are not getting a public inquiry into the scandal? The Prime Minister told the House on 26 February that such an inquiry would be established, but the proposals set out by the Minister today fall short of that. We welcome the Business, Energy and Industrial Strategy Committee inquiry into this issue, but we really need a full independent public inquiry.

Does the Minister understand the anger and disappointment at the length of time it is taking to get the truth about one of the largest miscarriages of justice in the UK’s history, amidst very serious allegations of perjury levelled against employees of Fujitsu, the company behind the system, and will he apologise to the hundreds of postmasters whose lives have been ruined—who have lost their homes, their livelihoods and their reputations as a result of inaction by this Government?

I am grateful to the hon. Lady for those questions. The review that we are putting in train covers the areas that a public inquiry would achieve. We want to find out exactly what is going on. We do not want to duplicate the effort, and we already have a number of words from Mr Justice Fraser that point to exactly where the chairman of the independent review needs to look.

This situation has been going on for some 20-odd years. It is disgraceful that it has taken this time for Alan Bates and his fellow group-litigants to actually get to a settlement and that so many people have had to suffer as a result. What I am keen to do now—my tenure in this role has been brief—is push on and make sure that they can get the answers that they need.

It is clear that the Post Office concealed evidence that would have cleared sub-postmasters who were convicted and have had their lives ruined. A major part of the evidence came from a Fujitsu whistleblower, who revealed that Post Office accounts could be changed remotely from Fujitsu offices. Sub-postmasters now have the opportunity to sue the Post Office for malicious prosecution, but while those who were subject to criminal proceedings are able to make claims, people who brought civil claims that have been settled cannot. This was clearly not the intention of the courts, so how can such a disparity in outcome be justified?

In terms of the whistleblower, Justice Fraser recommended a number of individuals to the criminal prosecution service, and that will follow its train accordingly. In terms of the group litigation, the settlement was agreed with the Post Office and that included legal and all other costs. In those circumstances, the Government cannot accept any further requests for payments, but for postmasters who have been convicted and had their convictions overturned there is a process in place for them to receive compensation, if appropriate.

The Minister will know that the Business, Energy and Industrial Strategy Committee, which I chair, is undertaking an inquiry on the Post Office Horizon scandal, and it is a matter of regret that we were unable to take oral evidence from Mr Read, the current chief executive officer of the Post Office, Ms Vennells, the former CEO, and Fujitsu as planned on 24 March, because of the lockdown. The sub-postmasters who have suffered such a depth of injustice, such a wide range of harm, will no doubt welcome the news today of the Minister’s inquiry, but will he confirm to the House that that inquiry will have sufficient power to compel the disclosure of documentary evidence and to compel witnesses to come before it to give evidence in public?

I am sorry that, for the same reason, I was unable to attend that session, but I hope in future to engage fully with the Select Committee. The key point is that the Post Office has said that it will disclose everything, and I will ensure that it does, to the best of my ability. I saw the same “Panorama” programme as the hon. Gentleman did, in which there was a big discussion and a long piece about non-disclosure. That cannot happen again. We have to draw a line and make sure that we get answers. The chairman of the independent review will push for that and so will I, to ensure that the Post Office complies appropriately.

Most MPs want the Post Office to apologise to all those it has wronged and pay generous compensation to them in the circumstances. Will the Minister add the Government’s voice to that and make it a demand of the Post Office?

The Post Office has acknowledged mistakes in the settlement and the case that we have had. I am glad that both parties to the group litigation were able to reach a settlement. Other sub-postmasters who suffered a shortfall will be able to take advantage of the historical shortfall scheme that the Post Office has launched. They will be able to come forward and have their case investigated, and hopefully those wrongs will be righted.

I, the hon. Member for North West Leicestershire (Andrew Bridgen) and Lord Arbuthnot have been campaigning on this for over seven years. People have been imprisoned; they have been ruined, both financially and mentally. As I have said on the record previously, they have been treated in a way a totalitarian state would treat people. The fact is that only a judge-led inquiry will get to the bottom of what is needed. Over the past seven years, I have cross-examined many of the Minister’s predecessors; today, I urge him to insist on that, because without it we will not get to the truth.

The Post Office is not the only one to blame; the Government are to blame as well, because Government Ministers have shareholder representation on the Post Office board and they have sat back and done absolutely nothing. Last year, they allowed the Post Office to spend nearly £100 million of public money on trying to bankrupt the Justice For Subpostmasters Alliance. That disgrace also needs to be exposed.

I acknowledge the right hon. Gentleman’s long campaign on behalf of the Horizon postmasters, which is to be welcomed. I have been shocked and surprised by the revelations I saw when I took over and continue to see. The terms of reference of the review are the same as those for a public inquiry. It is to work out: who is to blame, can it happen again, how can we prevent it from happening again, what wrongs were done, and how can we right them? The chairman will be independent of both the Post Office and Government.

On the Government’s role as a shareholder, clearly the Post Office has operational independence, but numerous attempts have been made over the years to resolve the dispute, including an independent investigation in 2013 and a mediation scheme in 2015, which was supported by Post Office Ltd and Ministers. All those attempts failed to resolve the issues, leaving the court as the only way to provide the independent review that all sides needed.

I am sure we all agree that sub-postmasters are at the heart of our communities, none more than the communities I represent in Wednesbury, Oldbury and Tipton. It is right that the Post Office is able to compete in challenging times, but may I ask my hon. Friend to reassure sub-postmasters in my constituency that the Government will continue to review the Post Office’s relationship with sub-postmasters and make sure that they are given the protection and respect they are entitled to and deserve?