Post Office: GLO Compensation Scheme

I wish to make a short statement about the sub judice resolution. I have been advised that there are relevant active legal proceedings in the Court of Appeal. I am exercising the discretion given to the Chair in respect of matters sub judice to allow reference to those proceedings, as they concern issues of national importance. However, I urge hon. Members to exercise caution in what they say and to avoid referring in detail to cases that remain before the courts.

With permission, Mr Speaker, I should like to make a statement about Horizon and Post Office group litigation compensation.

The Horizon scandal is nothing short of a travesty. Today, I turn to those who lost everything—those who were driven to bankruptcy and lost the savings for which they worked all their lives; those who were falsely accused and lost their good name in our country’s courts; those who were falsely convicted and lost their freedom in our country’s prisons; and all those who, having lost everything possible, then took their own lives—to say that we should not be here and it should not have happened. It should have been said years ago, and I want to say it today: I am sorry. I am sorry for those years of pain, of hurt and of anguish. I apologise unreservedly for any part that my Department has played, historically, in this miscarriage of justice.

The Post Office is a public institution. It exists to serve the British people. That the best of us, our postmasters, could be subject to such intolerable injustice does not bear thinking about. This is a wrong that can never be put right, but I hope that the steps that we are taking today will be of some comfort to those who have fought and who continue tirelessly to fight for justice. We want the postmasters who exposed the scandal through the High Court group litigation order case to receive similar compensation to that available to their peers. That is what is right, and it is what is fair.

On 2 September, my predecessor at the Department for Business, Energy and Industrial Strategy, my right hon. Friend the Member for Spelthorne (Kwasi Kwarteng), wrote to those in the group litigation order case to ask their views on whether the Department or the Post Office should administer the scheme, which will deliver additional compensation to those postmasters who originally brought the case to court, and what form they would like it to take. The majority view was that BEIS should deliver an alternative dispute resolution approach, using the information prepared for the GLO case, so that is the route that we will now follow. Over the past three months, a great deal of work has been done to develop the details of the scheme, drawing on comments made in the consultation. I am writing to members of the group litigation today with further information about how it will work.

For too long, our postmasters have been left to endure devastating financial hardship. I am therefore pleased to say that all Post Office and Horizon-related compensation payments will be disregarded for benefits purposes. Once the disregard is in place, payments received by postmasters will no longer count towards the capital limit for means-tested benefits and pension credits, and will therefore not affect their eligibility to claim for them. The Government will legislate to put that disregard in place at the earliest opportunity.

I welcome today’s statement and apology, which represent an important step forward in the delivery of justice following what may well be the largest miscarriage of justice in our country’s history. There have been 900 prosecutions. All the postmasters involved have their own stories of dreams crushed, careers ruined, families destroyed, reputations smashed, and lives lost. Innocent people have been bankrupted and imprisoned.

Let me start by paying tribute to the Justice for Subpostmasters Alliance, the campaigning group, and to the hundreds of sub-postmasters whom no monetary amount can compensate for the injustice that they have suffered. This has been a long walk towards justice, and Members in all parts of the House have stood and spoken out in solidarity with the postmasters. I want to recognise, in particular, my right hon. Friend the Member for North Durham (Mr Jones) and Lord Arbuthnot, who are rightly to be members of the independent advisory board.

I also pay tribute to the Minister who was previously formerly responsible for the Post Office, the hon. Member for Sutton and Cheam (Paul Scully). I do not do so lightly, but after successive Conservative Governments had sat on the scandal, he was the first to take hold of it and eventually—following much campaigning by Members of Parliament and members of the Labour party—to establish a statutory inquiry. Finally, I want to thank the journalist Nick Wallis, whose BBC Radio 4 series “The Great Post Office Trial” did much to bring this scandal to general attention.

While I am pleased that some kind of acceptable outcome for the postmasters seems finally to be in sight, I have some questions to ask. The press release refers to a compensation scheme for postmasters who helped to expose the scandal, but I remind the Secretary of State that it was his Government who spent years aiding and abetting the Post Office in targeting those self-same postmasters who were looking for justice. Nearly £100 million was spent by the Post Office to defend the indefensible as part of a campaign of intimidation and deceit. The Government are the only shareholder in the Post Office, so it is right for the Secretary of State to take responsibility.

I am grateful for the hon. Lady’s comments, although I rather hoped the House would come together today and debate this matter in a non-political, cross-party way, and she sought to make a number of, I think, somewhat inappropriate political points. I should gently point out that it was her party that was in power for the first 11 years of this scandal. I am pleased that we have worked across parties to fix it, and I think we should leave it there.

Earlier today I spoke to Alan Bates, the founder and leader of the Justice for Subpostmasters Alliance, who is sitting in the Public Gallery. Obviously the members of the JFSA will speak for themselves, as they always have, about the extent to which they are satisfied with today’s statement, but we have been working closely together. The Minister for Enterprise, Markets and Small Business, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), has been meeting them as well, and will be keeping a close eye on the operation of the scheme.

I reiterate the hon. Lady’s comments in thanking not just the right hon. Member for North Durham (Mr Jones) —as I did earlier—but my hon. Friend the Member for Sutton and Cheam (Paul Scully), Lord Arbuthnot, and others who have campaigned endlessly on this issue, including the BBC journalist Nick Wallis, who has played an important role in this long battle.

The hon. Lady asked about timescales. As I said in my statement, we aim to complete this part of the scheme by the end of 2023, or, I hope, sooner. The large number of documents that we are putting online this morning will enable people to get on with processing their applications before making formal applications early next year. Sir Wyn Williams, who is conducting the formal inquiry, will, I hope, be able to shed significant light on what went wrong and provide a set of recommendations to prevent it from happening again. I have no doubt that Members, certainly on this side of the House, will be anxiously awaiting those recommendations.

Will the inquiry which I gather is still under way ever reveal to the public how it was possible—in a modern constitutional democracy, with the presumption of innocence operating in our justice system—for hundreds of people with unblemished personal records to be prosecuted, tried and convicted because it was deemed that a computer programme could not be wrong?

The simple answer is yes, and that is the purpose of Sir Wyn Williams’s inquiry. I should remind the House that it could lead to individuals’ taking specific responsibility on the basis of his recommendations, and to the legal process that might consequently unfold.

As I said to the GLO group earlier today, anyone who has observed this from afar, watching and listening to coverage from Nick Wallis and others over the years, must feel their blood boil at the sheer injustice of a computer programme being placed ahead of people’s lives. I think that makes all of us shudder. I am only pleased that in this particular case, because of a group of people who undertook the most proactive work to try to get to the truth, we are now able to ensure that their compensation matches everyone else’s.

I call the Chair of the Business, Energy and Industrial Strategy Committee.

Oh, I am sorry, Darren. I forgot; it is Marion Fellows first.

I do not mind being forgotten, Mr Deputy Speaker, but I am glad to be called. I hope this is not being added to my two minutes.

I want to thank the Minister for giving me advance sight of his statement. I particularly want to thank the Justice for Subpostmasters Alliance, and especially Alan Bates, who I have had the pleasure of speaking to at the all-party parliamentary group on post offices. I also stand here to say thank you so much to the right hon. Member for North Durham (Mr Jones) and to Lord Arbuthnot. Who would have thought I would be thanking a Lord in the other place?

I stand here in the shoes of giants. I take advice from everyone as chair of the APPG, but one thing I am sure of is that there are people right across this Chamber who will be watching the progress of this new scheme carefully. We welcome it—it is long overdue—but people will be watching to make sure that it runs properly. I want to thank the hon. Member for Sutton and Cheam (Paul Scully) and also the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Thirsk and Malton (Kevin Hollinrake), who invited me along to a meeting on this subject. It is important that people are watching, it is important that the scheme works and it is very important indeed that those who have suffered, and those who are left behind, are adequately recompensed.

I add my thanks to the chair of the all-party parliamentary group on post offices for all the work she has done with colleagues over this considerable period of time. I absolutely agree with her about the importance of making sure that this all now happens. She is right to say that Members across the House will be watching that closely, and none more so than the small business Minister, my hon. Friend the Member for Thirsk and Malton, I can assure her.

I welcome the tone and nature of the statement that the Secretary of State has just made; I am delighted to hear his approach to this. I am also pleased to see at his side the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Thirsk and Malton, who I know will keep postmasters front and centre of everything he does. Post Office workers rightly deserve compensation, but they also deserve justice, and to get justice they need those responsible for the suffering they endured for so many years to be held to account. It is possible that, within the Secretary of State’s Department, there are officials who were potentially responsible for what happened. What can he say to those sub-postmasters who are going to engage in this compensation scheme with an open mind to give them confidence that BEIS will act properly, fairly and promptly in all its dealings with them?

I can absolutely give my hon. Friend the assurance that, under my tenure, there will be no stone left unturned when it comes to this. I want to pay tribute to her for her work on bringing justice to this important cause; I know that she has had had a number of constituency cases in Telford. I can absolutely reassure her that, whether it is in the Post Office or anywhere else, we will make sure that no stone is left unturned.

Take two: I call Darren Jones.

Thank you, Mr Deputy Speaker.

I welcome the announcements made today, which were recommended in my Committee’s interim report on compensation and by many others, and I welcome the appointments of my right hon. Friend the Member for North Durham (Mr Jones) and Lord Arbuthnot in the other place. In respect of the benefit disregards, can the Secretary of state confirm when the statutory instrument will be tabled? It will not take long to do, and it should be done quickly. Can he also confirm that while we are waiting for the benefit disregards to come into force, the victims who suffer loss as a consequence of that will be given additional compensation to cover the deductions from their benefits and pension payments?

I am just taking advice from my hon. Friend the small business Minister on the interim payments, and I think the answer is yes. On the scheduling of the SI, it will be done as quickly as possible in terms of parliamentary business, but that will not hold anything up because the payments have to be made first. They will be well in advance of that, and the commitment is in the statement today to lay the SI. Finally, I pay tribute to and thank the Chair of the BEIS Committee for all his and his members’ work on the subject.