Post Office Horizon Scandal

(Urgent Question): To ask the Secretary of State for Business and Trade if she will make a statement on financial redress for sub-postmasters and outstanding issues relating to the Post Office Horizon scandal.

As a Back Bencher, I first spoke on the matter of compensation for victims in March 2020, which is obviously long after the right hon. Gentleman first campaigned for it. I pay tribute to his campaigning on this subject, which remains undiminished. My appetite for compensation for postmasters is equally undiminished, although I accept the need to increase the pace of delivery.

As of this month, £160 million has been paid in financial redress to more than 2,700 victims affected by the Horizon scandal. More than 78% of eligible full claims received have been settled as follows: 102 convictions have been overturned, and 42 full claims have been submitted, of which 32 have been settled; 2,793 applications to the Horizon shortfall scheme have been received, and 2,197 have been settled; 58 full claims have been submitted to the group litigation order scheme, and 41 have been settled.

Our top priority remains ensuring that victims can access swift and fair compensation. We have introduced optional fixed-sum awards of £600,000 for victims with overturned convictions and of £75,000 for group litigation order members as a swift means of settlement, and 100% of original applicants to the Horizon shortfall scheme have received offers of compensation. Today we are discussing what other measures can be taken to speed up compensation with the Horizon compensation advisory board, on which the right hon. Gentleman sits.

Since the Prime Minister’s announcement on 10 January, officials in the Department for Business and Trade and the Ministry of Justice have been working at pace to progress legislation for overturning convictions related to the Post Office’s prosecutorial behaviour and Horizon evidence. I will provide a further update to the House very soon.

Thank you, Mr Speaker, for granting the urgent question. I draw the attention of the House to my interest as a member of the Horizon compensation advisory board.

I like the Minister. He campaigned on this issue before he was a Minister, and he has been a very good Minister, but a lot of that good work was undone on Monday by the performance of the Secretary of State for Business and Trade. I am disappointed that he has not taken the opportunity today to talk about the overturned convictions. I understand that later today, at 12 o’clock, there will be a written ministerial statement on the subject. I do not think that is the way to do it, as the House needs an opportunity to discuss the overturned convictions.

I will ask the Minister a few questions. It is quite clear now that Nick Read, the Post Office chief executive, wrote to the Lord Chancellor basically opposing the overturning of all convictions, saying that up to 300 people were “guilty”. It is not yet clear who instructed him to do that. On Monday, the Secretary of State said it was done off his own bat. I would like to hear what the Minister has to say on that.

If there are to be overturned convictions, they cannot just be about Horizon; they should also be about Capture. Evidence that I have put to the public inquiry and sent to the Minister yesterday clearly indicates that the scandal predates Horizon. Those affected need to be included in both the compensation scheme and among those with overturned convictions.

The board is meeting this afternoon, and we have made recommendations to the Minister on how to simplify and speed up the compensation scheme. Will he give an assurance to the House that once the recommendations are agreed, we can announce them quite quickly, primarily to restore to the sub-postmasters some faith, which was wrecked by the performance of the Secretary of State on Monday?

I thank the right hon. Gentleman for his question. The overturned convictions are a key priority for me and my Department. I am always keen to update the House whenever I can. There always has to be a sequence to ensure that we follow proper process. What we are doing potentially affects the devolved Administrations, so it is really important that we engage with them properly. That is one of the reasons why we need to make the written statement later today. I have never been unwilling to come before the House and report on what we are doing. I will, of course, continue to do that.

On the letter from the chief executive to the Justice Secretary, I am aware of the allegations by Mr Staunton. They are very serious allegations that should not be made lightly or be based on a vague recollection. If the right hon. Gentleman looks at the letter from the former permanent secretary, it is clear that she believes the allegations are incorrect, and that there was never any conversation along the lines referred to by Mr Staunton. I think it is pretty clear that those allegations are false.

The right hon. Gentleman has regularly brought up Capture. We are keen to continue to engage with him on that to ensure that those affected are included in any compensation where detriment has occurred. I note his point about an oral statement. As I say, I am always keen to give such statements whenever possible, and to be interrogated on our plans. I do not think he will be disappointed by what we announce later today.

Now that the then permanent secretary has outlined that she did not implicitly or explicitly tell the then chairman of the Post Office to slow down compensation, I hope we can spend time less time talking about someone who has lost his job and more time talking about postmasters who have lost everything. Will the Minister, who is doing great work in sorting this out, recommit to August as his target date for getting compensation—life-changing compensation —out of the door as soon as possible?

I thank my hon. Friend for his work on this matter; as my predecessor, he did a tremendous job. The most concerning allegation we heard over the weekend was about the delay in the payment of compensation. In her letter, which is publicly available, the permanent secretary wrote:

“It is not true that I made any instruction, either explicitly or implicitly. In fact, no mention of delaying compensation appears in either note.”

So I agree with my hon. Friend that we should move on from that and focus on what really matters, which is getting what he rightly described as life-changing compensation to postmasters as quickly as possible. That is his, and will remain our, No. 1 priority.

I call the shadow Minister.

Let me first pay tribute to my right hon. Friend the Member for North Durham (Mr Jones) for securing the urgent question, and indeed for all the work he has done over many years, along with other Members, in trying to secure justice for sub-postmasters.

The Post Office Horizon scandal is one of the most insidious injustices in our country’s history. It has robbed innocent people of their livelihoods, their liberty and, all too sadly, their lives. At least 60 sub-postmasters have died without seeing justice or receiving compensation, and at least four have taken their own lives. More than 20 years on, the victims and their families are still suffering from the consequences and the trauma of all that they have been put through. They have been trapped in a nightmare for too long. We all want to see the exoneration of all who remain convicted, and the delivery of rightful compensation to all affected sub-postmasters, as quickly as possible. Labour wants to see a swift and comprehensive solution to this insidious injustice, and we are willing to work with the Government to ensure that happens.

Will the Minister please provide an update on the timeline to which he is working to amend the seismic damage that this scandal has caused, and will he please give an assurance that he is acting with the appropriate speed that is required for necessary legislation to go through? Victims have already waited too long for justice, and we must act now, with the speed and urgency that this awful scandal requires.

I thank the hon. Gentleman for the way in which he has approached this matter. There was nothing in his remarks that I disagree with. As I said earlier, 78% of claimants have received full and final compensation, but we fully share his wish, and that of his party, for a swift resolution and a swift end to this, and we have engaged significantly and extensively with his colleagues on the Front Bench. As for how we overturn convictions, the measures that we are taking are clearly unprecedented, but this is an unprecedented situation.

The hon. Gentleman asked about the timeline. We have always said that it is weeks, but it is fewer weeks now than it was. I do not think he will be disappointed— I said this to the right hon. Member for North Durham as well—by what we will say, hopefully, later today, but this has taken too long. We are working daily to resolve these issues, and the overturning of convictions, the legislation and the compensation cannot come too quickly.

My hon. Friend has done a great job, but I am conscious that there are still many people waiting to settle. Much of that is due to the fact that the Post Office is not releasing information that has been requested by my constituents or, indeed, their solicitors. I hope that my hon. Friend can put across to the chief executive of the Post Office how critical it is to regain trust by releasing that information, because I fear that other sub-postmasters, or people who might otherwise have been interested in dealing with the Post Office, will start either to move away or not to take up those business opportunities, which would also damage communities—and that is already happening in my constituency.

I thank my right hon. Friend for her question and for making that point; she is absolutely right. Disclosure both to the inquiry and on individual cases, which is required to be able to compile claims, has been too slow. If Post Office Ltd and its management team are going to rebuild trusts with claimants and the wider public, it is absolutely incumbent on them that this is done properly and that the governance around it is done properly. That is part of the reason why the Secretary of State acted as decisively as she did, but I absolutely concur with my right hon. Friend. Alongside her, I urge Post Office Ltd to deliver disclosure more quickly.

I call the SNP spokesperson.

Documents published this week by the BBC reveal that the Swift review, dated February 2016, noted that Post Office Ltd “had always known” about the balancing transaction capability that allowed transactions to be addended remotely, which is what happened. The lawyers for Post Office Ltd did nothing about that, and many people still do not trust it. A letter has been circulated, and the right hon. Member for North Durham (Mr Jones) deserves all the praise we can give him today. I have a copy of his memo, which says that anyone can write to him on any issue and get advice on how to pursue claims.

The Minister has given us a list of percentages and so on, but it is still not fast enough. It is still not good enough, and one of the reasons is that Post Office Ltd is still not trusted; people want nothing to do with it. I cannot fix that, but I do not think that the spat between the Secretary of State and Henry Staunton this week did anything to increase sub-postmasters’ confidence, and we really need to get this sorted. Yes, the Horizon shortfall scheme has been well managed in some regards, and claims are going through and being paid, but how much is being paid? So many sub-postmasters are getting derisory offers—not just people in the GLO scheme, but normal, everyday sub-postmasters who have been putting in money for years. We need to get this sorted. I appeal to all sub-postmasters affected to put in a claim.

I entirely agree with the hon. Lady on that point and on a number of other points she raised, and I thank her again for the work she has done in this area for many years. I, too, am concerned about some of the information that came to light this week, and the public inquiry is there to examine any allegations relating to who knew what and when. It would be wrong of us to duplicate the inquiry’s efforts, because it is a public inquiry that has the powers to summon witnesses to give evidence and to carry out other forms of evidence gathering, which is the right way to do this. I agree with the hon. Lady that compensation cannot come fast enough and that Post Office Ltd has to rebuild trust not just with the wider public; key to this are the postmasters.

Yes, of course we want to make sure that people get fair compensation. May I point gently to the performance so far of the group litigation order scheme? Fifty-eight full claims have been received, 48 offers have been made and 41 have been accepted without going to the next level, which is the independent panel. That tends to indicate that those offers are fair, because people have recourse to the appeal process. I am aware of one or two high-profile cases where people say they have not been offered a fair amount. I cannot talk about individual cases, but we urge any of those individuals to go to the next stage of the process, which is the independent panel. The whole scheme is overseen by Sir Ross Cranston, who has a very good reputation both in this House and further afield. We absolutely believe that the process will offer fair compensation, but we urge people to return to the table and ensure that their claim is properly considered by all means available.

I thank my hon. Friend for all the work he has done on this issue—not only on the Front Bench, but on the Back Benches. No amount of compensation can compensate the victims of this complete scandal. However, it does help, and speeding up the process is obviously important. Will he, during the passage of the legislation that the Government have promised to introduce, ensure that innocent victims are not only compensated, but completely exonerated? In their communities, they have suffered the stigma attached to all this, and they need to have their names cleared and their reputations restored.

I thank my hon. Friend for his regular contributions on this subject, which he frequently raised prior to the ITV series. I appreciate his work.

My hon. Friend is right to say that no amount of compensation can make up for what happened to many people’s lives. We want all the innocent people to be exonerated. We know there is nervousness, with some victims not trusting the process—they have simply had enough. We met Howe & Co., one of the solicitors, to talk about this issue yesterday, and its contention is that around 40% of the people who received a letter saying, “We will not oppose an appeal,” still will not come forward. We need a process that does not require people to come forward if we are to have a mass exoneration of those affected by this horrendous scandal. We hope to announce that later today.

I call the Chair of the Business and Trade Committee.

I associate myself with the words of praise for the Minister’s speed and attention on this issue. I think a legally binding instruction for the Post Office and the Department to deliver at speed is a necessity in the new Bill. The Minister has told us today that about £160 million has been paid in compensation, but there is provision for about £1.2 billion, which means that only 13% of the money has been paid out. He updated the House on the number of claimants, and there were 555 people in the GLO group and 700 who were convicted. As the Minister told us, only 73 people have had their final compensation fully paid, which is only 6% of the two groups.

The confusion at the beginning of the week about who said what to whom shows there is confusion about the instruction to deliver at speed. When the Bill comes before us, will the Minister reflect on the necessity for a legally binding deadline under which the Post Office must make information available in 20 to 30 days and an offer must be made to settle within 20 to 30 days, with a legally binding deadline for final resolution? Otherwise, frankly, I worry that the ambiguity will still cause delays. He knows as well as I do that justice delayed is justice denied.