Post Office (Horizon System) Compensation Bill

I beg to move, That the Bill be now read a Second time.

The Post Office Horizon scandal, which began over 20 years ago, and the impacts of which are still felt today, is rightly described as one of the biggest miscarriages of justice in our history. The House will be aware that during 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 that postmasters cover the shortfalls and, in many cases, wrongfully prosecuted them for false accounting or theft. Attempts to protest their innocence fell on deaf ears, and decent, honest and hard-working postmasters who served at the heart of our communities were subject to a range of abject harms.

Take the case of Alan Bates, who is one of a number of heroes in this tale. As many Members will know, Mr Bates is due to be immortalised on our screens on 1 January in the ITV series “Mr Bates vs The Post Office”, which will make compelling viewing for many of us. He is an innocent man who, alongside his partner Suzanne, invested £100,000 of life savings to start a new life and run the post office branch in Craig-y-Don, on the north Wales coast. When shortfalls began to emerge, Mr Bates was accused by the Post Office of mismanagement and ordered to repay the difference immediately. He protested his innocence and identified some of the supposed shortfall as the result of an overnight software update. The Post Office continued to pursue payment, meanwhile refusing Mr Bates the IT access necessary to interrogate his own branch accounts. His postmaster’s contract was subsequently terminated, with Mr Bates losing his likelihood, savings and reputation in his community in the process.

Suspecting that other postmasters may have suffered because of Horizon issues, Mr Bates launched his campaign website. Ultimately—15 years later—he gathered enough evidence to successfully take the Post Office to court and expose the scandal.

Like Mr Bates, my constituents Mr and Mrs Simpson ran a village shop and post office that suffered from the faulty software. They have campaigned for compensation through the Justice For Subpostmasters Alliance, and Mr Simpson himself gave evidence at the public inquiry. Will the Minister join me in paying tribute to my constituents and their colleagues? Without their determination and courage, we would not be where we are today, delivering this Bill to support those victims.

I thank my hon. Friend for his intervention, and I particularly thank Mr and Mrs Simpson for their work—of course, a number of people campaigned so strongly on this tragedy. I pay tribute to his constituents and to many others like them who made sure we are here today, delivering justice and, indeed, compensation for those postmasters.

Alan Bates’s case is one individual tragedy, but he is only one among many: over 3,000 people have suffered in some way as a result of this scandal. For some, that meant paying the Post Office money they did not owe. For others, it meant the loss of their livelihood, their home, their mental or physical health, or their family relationships. Too many have died before getting justice; saddest of all, some of those deaths were suicides. Each Horizon victim is a personal tragedy, and it is imperative that each and every one gets the justice and compensation for which they have waited too long.

This Government are committed to delivering justice for all Horizon victims. Part of that justice will come from making sure that everyone knows the truth about what happened, which is why the Government set up the statutory inquiry into the scandal chaired by Sir Wyn Williams. The work of that inquiry to date is commendable—it is doing important work in exposing the truth. From that truth will follow corporate and individual accountability, for which there is a strong appetite in this House and beyond. I sympathise with hon. Members’ desire to see accountability right now, but we must let justice take its course.

On the Minister’s point about corporate responsibility, I had the chief executive of the Post Office come and apologise to one of the people I have represented in this exercise. The point I made to him, which I hope the Minister will also take on board, is that the corporate behaviour of the Post Office has not been above criticism: it has employed very expensive lawyers to make this process much more difficult for the victims than it needs to be. I hope the Government will continue to encourage the Post Office not to do that.

Absolutely—we want to make it as easy as possible. I thank my right hon. Friend for his campaigning on this matter, too: he is one of a number of parliamentarians who has done fantastic work to make sure we are here today. I have referred to both corporate and individual responsibility. Corporate accountability is not enough: where we find that individuals are to blame, they should be held to account too.

Any compensation must be fair and just, and we have created a Horizon compensation advisory board to help us make sure that happens. I am very grateful to the right hon. Member for North Durham (Mr Jones), both for his campaigning on this matter and his work on the advisory board. He sits on the board alongside Lord Arbuthnot, who is another great campaigner on this matter, and two academics. Its reports, which are published on gov.uk, have been invaluable in helping us ensure that the schemes are working properly and delivering fairness. As part of the Post Office’s process for compensation for overturned convictions, it is —by agreement with claimants’ lawyers—appointing an independent assessor for the process, whose role will be to ensure that fair compensation is paid.

The Minister is right when he says that this is a miscarriage of justice. As I have often said in this place, I was formerly a postmaster, and I can remember when the tills did not balance. Unlike the Post Office, I believed my staff that it was not their fault—that there was an error. Luckily, those errors were not significant, and we just wrote them off. I thank the Minister for all he has done, as well as my hon. Friend the Member for Sutton and Cheam (Paul Scully), who has equally done an enormous amount.

The Post Office did not believe those innocent postmasters who were simply doing their job, but equally, Fujitsu supplied the software that did not work properly, yet I never hear about whether that company is culpable. Can the Minister tell me what Fujitsu has ever had to suffer from what has happened to everybody else?

I thank my hon. Friend for his work on this issue, as well as his direct experience—he is one of the few people in this House who has that experience. I also pay tribute to my hon. Friend the Member for Sutton and Cheam (Paul Scully) for all the work he did as my predecessor; his comments about Fujitsu, and about making sure that it is not the taxpayer alone who picks up the tab, are clearly on the record. Again, where responsibility can be assigned, there should be accountability, perhaps in the form of compensation paid by those companies. It is right, though, that the Sir Wyn Williams inquiry is allowed to take the time it needs to report and to identify blame where it exists. Those matters can then be dealt with at that time.

Alongside introducing this Bill, my Department published a revised version of the documents for the group litigation order scheme, which make clearer than ever that the scheme exists to pay full, fair and timely compensation. If compensation cannot be agreed with my Department, a decision will be made by a panel of independent experts. Any GLO postmaster who believes that the panel’s award fails that fairness test can ask the scheme’s independent reviewer, Sir Ross Cranston, to look at their case. Between them, those arrangements provide powerful and independent assurance that compensation is fair.

Turning to compensation amounts, to date, around £138 million has been paid out to over 2,700 claimants across the three compensation schemes established by the Post Office and the Government. Those figures are regularly updated on the dedicated gov.uk page. So far, 93 convictions have been overturned. We have seen positive progress since my previous statement to the House on 18 September, which announced that postmasters who have had convictions on the basis of Horizon evidence overturned are entitled to up-front offers of £600,000 as a fixed sum in full and final settlement of their claim. I can confirm that following that announcement, the first 22 claimants have now settled their claims with the Post Office, taking the total to 27 full and final settlements—I hope this will encourage other postmasters to submit claims. I should add that a significant proportion of those claimants followed the fixed sum award route.

I call the shadow Minister.

I want to begin by paying tribute to Members across the House who have worked tirelessly on this campaign, particularly my right hon. Friend the Member for North Durham (Mr Jones) for his work in campaigning on this issue and Lord Arbuthnot for his many years of work in tackling this injustice. Of course, as the Minister has said, we all pay particular tribute to Alan Bates for his pioneering work in this campaign and for working tirelessly to seek justice. Without his bravery and perseverance, the campaign would not be where it is today.

The Horizon scandal, as we have heard from the Minister, is a truly shocking miscarriage of justice and one of the most devastating in British history. The scandal has brought devastation to the lives of over 700 falsely convicted sub-postmasters, and 20 years on, they and their families are still suffering from the consequences and the trauma of all they have been put through. I want to pay tribute to their determination for pursuing justice. The wrongly accused sub-postmasters have had to endure unjust prison terms, family breakdowns, homelessness, bankruptcy, health consequences, being ostracised from their own communities and worse, to say nothing of the mental health toll and the stress they have all carried while knowing that they have been wrongly convicted. I do not think any of us can truly understand the scale of what they have suffered.

As of 10 August 2023, the Post Office Horizon IT inquiry and the court cases have heard that at least 60 sub-postmasters have died without seeing justice or receiving compensation, and at least four have tragically taken their own lives. Most recently, Tom Brown, a constituent of my right hon. Friend the Member for North Durham, sadly, passed away. He was the sub-postmaster of several branches spanning 30 years, and he died without receiving his full and final compensation. My thoughts, and I am sure those of the whole House, are with his family and friends at this time, as well as with the many others who have lost loved ones affected by this horrific injustice.

My hon. Friend is making an excellent speech. I pay tribute to the campaigners, particularly Mr Bates and, indeed, hon. Members from across the House. The point she makes about the Government, the Post Office and, indeed, Fujitsu learning lessons from this appalling scandal is absolutely right, and I do hope that the Minister, when he speaks later, will be able to address those points. Does she agree with me that it is very important that the Government learn the lessons and help the Post Office learn the lessons of such awful incidents?

I thank my hon. Friend for his intervention, and I know that the Minister will be keen to make sure that these mistakes are never repeated and that the lessons are learned.

It is vital that we act with urgency and speed, and I look forward to the full publication of the Post Office Horizon IT inquiry, so that we can ensure that those responsible are finally held to account. It cannot be right that they have not been held to account as yet, when so much time has passed. I want to thank Sir Wyn Williams and the inquiry team for their ongoing work.

The Labour party will work with the Government to do what we can to ensure that justice is delivered, and as such we support the Bill. The Government must now confirm how they will use the extra time that this Bill grants to deliver justice as quickly as possible. I welcome some of the detail that the Minister has provided in writing as well as what he has said today, and I hope that he ensures that the necessary action is taken to ensure delivery and that the compensation is provided as quickly as possible. Once again, I pay tribute to all those who have worked tirelessly to secure justice, and I commend this Bill to the House.