Post Office: Horizon Compensation Arrangements

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on compensation arrangements for those sub-postmasters/mistresses who have been impacted by the Post Office Horizon software scandal.

First, I apologise, Mr Speaker, for the misunderstanding. I was prepared to make a statement, but obviously the current situation and affairs have got in the way. I am happy to provide an update on Horizon matters since I last made a statement in December. I met the Business, Energy and Industrial Strategy Committee last month, and last week the Select Committee published its interim report on the Post Office and Horizon IT scandal. The Government will consider the Committee’s recommendations and respond in due course.

People need to know about how this scandal came about and what protections are in place to avoid history repeating itself. That is why the Government established the Post Office Horizon IT inquiry to investigate exactly what went wrong. The evidence from postmasters who have participated since the inquiry hearings began last week has been harrowing to hear, and I thank those postmasters for their courage and their willingness to revisit the trauma they have experienced. Compensation cannot take away the suffering that affected postmasters have experienced, but we are determined that each eligible person gets what is due to them, and that that is paid as quickly as possible. Of the 72 postmasters whose convictions have been overturned, more than 95% have applied so far for an interim compensation payment of up to £100,000, of which 63 offers have been accepted and paid. The Government are pushing for final settlements for quashed convictions to follow as quickly as possible, and negotiations on the first two have begun. The Government are determined that all unjust convictions are quashed. The Post Office is reaching out to affected postmasters.

The Post Office is also in discussion with other public prosecuting bodies responsible for the convictions of postmasters that may have relied on Horizon evidence to ensure that those postmasters are also contacted and enabled to appeal. Offers have been made to over 40% of applicants and compensation has been paid to 764 postmasters who have applied to the historical shortfall scheme. So far, 28 postmasters are proceeding through a dispute resolution process aimed at achieving acceptable settlements. At least 95% of those cases should have been dealt with by the end of the year.

I thank the Minister for his response. As he is aware, the right hon. Member for North Durham (Mr Jones), who I am glad to see in his place, and I are the only remaining Members of the House who were part of the original Post Office review working party that was set up to address the issue over a decade ago. In the years that have followed, we and others have been repeatedly dismissed and fobbed off by all the previous incumbents of my hon. Friend’s current ministerial position when we called out what we saw at the time, the evidence we had uncovered and what, in retrospect, with so many cases, was an obviously flawed computer system and a huge miscarriage of justice.

The issue was first highlighted to me by my constituent Michael Rudkin in 2011. He had been forced out of his position as a national representative of sub-postmasters and his wife had been advised to plead guilty to a crime that she had not committed because of a flawed computer system, which Post Office officials were too arrogant to believe could possibly be to blame, and because of a Post Office management whose relationship with the sub-postmasters I described in this House as “feudal” in 2015.

My constituents are just two of the hundreds who lost their jobs, assets and reputations in what is the largest miscarriage of justice in this country’s recent history. Their lives have been affected for 20 years or more. There is no excuse for further delays to compensation. They were wronged by the Post Office and let down by Ministers and officials who apparently took the Post Office’s word without question. They deserve justice and adequate compensation now—not in months and years when the Department, which is partly culpable for the situation, finally gets its act together.

I have written to the Minister, as I have been passed a letter from the Under-Secretary of State for Business, Energy and Industrial Strategy, Lord Callanan, addressed to Lord Arbuthnot, who was also part of the original Post Office working party and maintains a strong interest in the issue from the other place. The letter states that no formal request for the funding of sub-postmasters’ compensation has been submitted to the Treasury by his Department. Can the Minister clarify whether that is still correct?

I thank my hon. Friend for his work in the campaign for both his constituent and for many other sub-postmasters across the country, and I thank the right hon. Member for North Durham (Mr Jones), whom my h F mentioned, and James Arbuthnot—Lord Arbuthnot—to whom I spoke earlier this week. I have spoken to Nick Read, the chief executive of the Post Office, and officials about this because, as I was quoted as saying in The Times last week, this, of all my wide range of responsibilities, is the one area that keeps me awake at night and absolutely drives me to get resolution.

My hon. Friend asked about the 555 and our commitment. As I have said, the 555 have been pioneers in this area, and I will absolutely work at speed. I do not want this to go on a moment longer than necessary, which is why we have tried to do everything we can to short-circuit any bureaucratic processes to be able to get on and compensate everybody fairly. The 555 postmasters who secured the group litigation order exposed this whole scandal by taking the Post Office to the High Court, and they performed a massive public service by doing so. I have written to the Select Committee with details of the costs and the preparations we have made with the Treasury.

When talking about this legally complex issue, we must remember the timeline of this and the timescale with which we are working. Horizon was installed in 1999, and the prosecutions started in 2000. In 2004, Alan Bates set up the Justice for Subpostmasters Alliance, and in 2009 press reports really started to look into the concerns about those prosecutions. Over this 20-year period, many different Ministers have been involved and there have even been Post Office reorganisations, but now—after this 20-year scandal, frankly—we want to make sure, at pace, that everybody, including the 555, get justice, answers and fair compensation.

I, too, thank the hon. Member for North West Leicestershire (Andrew Bridgen) for securing this important urgent question, and I really pay tribute to my right hon. Friend the Member for North Durham (Mr Jones) for all his work on this issue.

The Horizon scandal is perhaps the most devastating miscarriage of justice in British history, damaging the lives of over 700 wrongly convicted sub-postmasters and their families, and the lives of so many who have been affected but have not been convicted. I join the Minister in paying tribute to those postmasters who have been relentless in their quest for justice. As the judge-led inquiry into this scandal has just begun, we have now been hearing extremely moving and devastating testimonies. I recommend that every Member spends time listening to the accounts just to understand how widespread this injustice has been.

Last week’s very important Select Committee report shows that, 12 years on, we are still painfully far from all the sub-postmasters receiving the compensation they deserve. Sadly, 33 of them have died before receiving any recompense. My thoughts and those of the whole House will be with their loved ones.

Given the cripplingly slow pace of justice, I want to press the Government on a few issues. First, without the extraordinary efforts of the 555 litigants, much of what we know would not have come to light. The Minister expressed his sympathy, but as Labour has pushed for time and again, will he now confirm that this group will be able to claim the compensation that is due, as he has hinted, and if so, when? Secondly, a year on from the historical shortfall scheme closing—I understand that over 2,500 have applied—only 30% of claims have been processed. Can the Minister outline what steps he is taking to hold the Post Office to account in urgently getting through this backlog, and can he clarify the definition of “eligible” that he stated? Finally, could he provide the House with an update on how long it will be before we get closure on compensation for all those affected?

I thank the hon. Lady, and I sympathise and empathise with everything she said. I know that for everybody affected, whether the 555 or those who were not prosecuted but lost money, nothing will be quick enough, and there is nothing we can do to restore up to 20 years of hurt and distress. On the 555, yes we want to ensure that those people who broke open the case and were the pioneers get full compensation. I am not yet able to outline a resolution for them, but I am working at pace within my Department, and with our legal representatives, Post Office legal representatives, and those of the Justice For Subpostmasters Alliance. I hope to have news for the hon. Lady as soon as possible.

Again, the historic shortfall scheme is not moving as fast as anybody would like. The Post Office has paid the de minimis cases and the most straightforward, smaller amounts. For the rest, it is working through the early cases, which will then benchmark the value of compensation for others. That will then allow the Post Office to start rattling through these cases a lot quicker. The Post Office says that it wants this to be 95% finished by the end of the year. I want to say 100% by the end of the year, and that is the kind of timescale I am working on.

I thank the Minister for his response, and for his tone. My constituent, Tracy Felstead, is due to give evidence to the inquiry on Friday. She wants people to be held to account, and so do I. We know that civil servants were non-executive directors on the board of the Post Office, and that they were principal accounting officers for UK Government Investments. We know that civil servants told Ministers to come to this place and to tell MPs that there was “nothing to see here.” Those civil servants are not on the list of the core participants giving evidence to Sir Wyn Williams. How can those civil servants be held to account by Ministers for their failure to act in this case for so many years?

I thank my hon. Friend for the work she does on behalf of Tracy Felstead and others. Tracy’s case is one that I often hold up as someone who was so young that she has spent more than half her life under this absolute shadow, explaining to her children now what happened all those years ago. On civil servants, I set up an independent inquiry to get those answers, and it is right that it remains independent. I do not want anybody to feel that they can get away with this, or that they do not have to answer those questions. I will ensure, as I am sure will my hon. Friend, that Sir Wyn calls up exactly who he needs to call as the facts are uncovered, so that everybody answers without fear or favour.

I congratulate the hon. Member for North West Leicestershire (Andrew Bridgen) on securing this urgent question, and I join him in thanking Lord Arbuthnot for his tenacious efforts over the years. I congratulate the Business, Energy and Industrial Strategy Committee on its report. It is clear that the only reason this scandal was unearthed was that 555 postmasters, including my constituent Tom Brown, took the Post Office to court. They were forced to settle because the Government and the Post Office used a tsunami of public money to defend the indefensible. The Minister and I have spoken. He knows that these people need compensation. The report recommends an independent comprehensive scheme, outside of the Post Office, and that is what we need now. I congratulate the Minister on what he has done in this area, but if the problem is the Treasury, can he not call that out now, so that we can put the fire on the Chancellor of the Exchequer to ensure we get the funding that is needed properly to compensate these individuals? The Minister knows as well as I do that this scandal will not go away.

I reiterate my thanks to the right hon. Gentleman for the work he has done for Tom Brown and all the postmasters. There is no single blockage in the Treasury. We are trying to work through the holistic view about where the money is coming from and how that is justified to taxpayers—as I said at the beginning, however, when taxpayers understand the scale and depth of this, they will clearly want to ensure that those postmasters get their review. We are also trying to unpick that legal settlement, which was, as he rightly describes, pushed through the Post Office under considerable pressure, considerable cost and considerable might. That will take a few days, but I want it to take days, not months—certainly not years—and I am working as quickly as I can to get that resolution. I am really hoping that I will be able to come back to the Dispatch Box and have good news for him in the next few days.

My hon. Friend the Minister may have just answered my question, but I will press him. I do not doubt the complexities and legalities, and I know how sincere he is on this issue for the brave group of postmasters who fought and were acquitted at the earlier stages. However, my constituent Nicola Arch and her family’s lives are on hold. She lost her job, and she tells me that when the Stroud newspapers covered the story, she was spat at and she lost her home. She thinks that she will have to litigate again. She is waiting. I was going to press him on a timeline, but I think he said days, not weeks or months. Will that be the case—for more information, at least—so that they can have some comfort in the knowledge that information is coming?

I believe from my Twitter feed that my hon. Friend is meeting Nicola Arch tomorrow—Nicola and I have those exchanges. Again, my heart goes out to Nicola, because being spat at and stigmatised shows the extra suffering that people experience. It is not just about the convictions, tragic as they are, or the money, difficult as that is; it is about what has happened to these people in their communities as former champions of those communities. I cannot give her the timescale. As I said, I am working at pace and need to give myself a little bit of leeway, but it is days or weeks—it certainly will not be a moment longer than is necessary to put these people out of their misery and give them compensation and justice.

I call the SNP spokesperson, Marion Fellows.

I am speaking in a dual role as I am also chair of the all-party parliamentary group on post offices. The Minister, the APPG and I meet regularly. He has described the Horizon case as “harrowing”, but it is beyond that, and it has gone on far too long. I commend all hon. Members of this place past and present—I will not name them all—who have worked tirelessly on it. The nub of the matter is: is the Treasury really on board for all the money required to compensate for this farcical tragedy and for supporting the continuation of the Post Office network? It is disgraceful that people in Government and the civil service have known about it for so long—far too long—and almost refused to do anything about it. I do not include the Minister in that, because I know that he is working hard, but it requires more than him to work hard; the different silos of Government need to come together and completely sort it out.

I thank the hon. Lady for her work on the Post Office in general as chair of the APPG. She talks about the case being harrowing, and that is why I am so determined to get it done. We have heard about Tracy Felstead and all the years of it that she has had, and frankly nothing that I say at the Dispatch Box will make her trust me because every member of authority, whether in Government, the Post Office or the judicial system, has let her and all those people down. We need to act—actions and outcomes are what matter—which is why I am so driven to ensure that we can resolve the case as quickly as possible.

The Treasury is not a blockage. Clearly, we are having conversations with the Treasury not only to ensure that we can underwrite the additional costs for the Post Office beyond what it can afford, as it has outlined in its accounts, but to give the Post Office the future that it needs. Realistically, we will not be able to get to that until we have sorted out the past. We continue to work constructively.

I associate myself with the remarks of my hon. Friend the Member for North West Leicestershire (Andrew Bridgen) and the right hon. Member for North Durham (Mr Jones). They are absolutely right, and they have been long-term campaigners on the issue. Mr Speaker, I smiled to myself when you made your statement, but I understand it and support it. This Minister cares passionately about the issue, and, whatever he says, as a long-term Whitehall hand, I see the symptoms of a Minister caught between the jaws of the Treasury and Whitehall lawyers. Lawyers do not always deliver justice and the Treasury rarely does. What I will say to him is this: nobody deserves justice more than the 555. They opened up the worst miscarriage of justice in modern Government. If it helps him in his battle to get this done quickly and properly, I will say this to him: if he cannot do it, we will find a way of having this House instruct the Government to do it. Let him use that in his battle with the Treasury and the lawyers.

I can quote the Francis Urquhart line back at my right hon. Friend, but any pressure will be gratefully received. The last two years of covid have been about learning to speed up Government. As someone who has been running small businesses for 25 years, I am used to making decisions, cracking on, getting on and doing things. The Government do not always work that way. We have learnt in the past two years how to do it and I fully expect it to happen in this case.