- 1:42 pm
- With permission, Madam Deputy Speaker, I would like to update the House on changes to the Post Office Horizon IT inquiry. Over a 20-year period, the Post Office Horizon computerised accounting system recorded shortfalls in cash, which were allegedly caused by sub-postmasters, leading to dismissals, recovery of losses and, in some instances, criminal prosecutions. I know that Members across the House are aware of the terrible impact that this has had on affected postmasters and their families. The life-altering implications of these accounting errors cannot be overstated.The Post Office Horizon IT inquiry, led by Sir Wyn Williams, was launched in September 2020 as a major step towards righting the wrongs of the past. The inquiry was established on a non-statutory basis to enable the chair to work quickly to establish a clear account of the implementation and failings of the Horizon computer system over its lifetime.On 27 April, I made an oral statement to the House following the decision by the Court of Appeal on 23 April to quash the convictions of 39 postmasters who had been convicted for Horizon-related shortfalls. As I said then, the Government recognise the gravity of the court’s judgment and the scale of the miscarriage of justice that it makes clear.Sir Wyn and I are both of the view that the context for the inquiry has changed in the light of the judgment by the Court of Appeal and that now is the right moment to convert the inquiry to a statutory footing. Therefore, I can now inform the House that, with the agreement of the Prime Minister, I will convert the inquiry to a statutory footing on 1 June 2021. I have also agreed that Sir Wyn will now have more time to undertake his work. The inquiry is now expected to report in autumn 2022, rather than summer 2021.Together, these changes will give Sir Wyn the powers and the time that he needs to conduct an in-depth analysis of the decision-making processes that led to the Horizon scandal. He will be able to compel organisations to provide documents and witnesses to give evidence, under oath if necessary. It is now for Sir Wyn to consider his next steps, and I expect that he will provide more information on his proposed approach soon. In the short term, the inquiry will complete its planned engagements through May, but public hearings that had been expected to take place in June will be delayed.I have always said that the inquiry should proceed quickly to get the answers that postmasters and their families are seeking. Sir Wyn has gathered a lot of evidence from key parties and engaged with many affected postmasters; I have therefore asked that he provide a progress update to his original timeline of summer 2021, to make public the progress to date and any initial findings. I hope that still more affected postmasters will choose to engage with Sir Wyn as he continues his work on a statutory footing.The inquiry’s overarching aims—to ensure that the right lessons have been learned and to establish what must change—will remain. However, there will be some changes to the terms of reference in the light of the Court of Appeal judgment. I have today notified the House of the updated terms of reference in a written ministerial statement.I thank Sir Wyn for his quick progress on the inquiry to date and for taking the time with me in recent weeks to consider the next steps for it. I am pleased to confirm that he has agreed to remain as chair of the inquiry for the next phase.Finally, I note that converting the inquiry to a statutory footing and proceeding over a longer period will, of course, have cost implications, but I assure colleagues across the House that they are being fully considered with my colleagues in HM Treasury.The Horizon saga has wrecked lives and livelihoods. We cannot undo the damage that has been done, but we can establish what went wrong at the Post Office and ensure that nothing like it is ever allowed to happen again. The events surrounding the dispute have long been shrouded in darkness, and this Government are determined to bring them into the light. The landmark Court of Appeal judgment changed the context for the inquiry. Following it, the Government did not hesitate to act to give the inquiry more teeth and equip Sir Wyn with more powers. To affected postmasters and their families, my message is that we are listening and we will get to the bottom of this appalling affair. I commend this statement to the House.
- 1:46 pm
- I thank the Minister for advance sight of his statement. My hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah) is not able to attend today but, like me, she welcomes today’s statement, including the much belated conversion of the inquiry to a statutory footing and the extension of its scope, although we believe that it does not yet go far enough.This is indeed the largest legal miscarriage of justice in our history. It is estimated that there have been 900 false prosecutions in total—each one its own story of persecution, of fear, of despair, of families destroyed, of reputations smashed, of lives lost and of innocent people bankrupted and imprisoned. I thank and congratulate everybody who has campaigned over so many years—for more than a decade—to reveal the truth, including the Justice for Subpostmasters Alliance and the Communication Workers Union. I also congratulate right hon. and hon. Members across the House who have fought for justice for their constituents; I mention in particular my right hon. Friend the Member for North Durham (Mr Jones), who has worked tirelessly on the issue.The campaign for justice has been long fought, and there is still a long way to go. The Minister’s announcement is a step in the right direction. The Labour party and the Justice for Subpostmasters Alliance have always said that the inquiry must be statutory, but less than a month ago in this Chamber, four days after the Court of Appeal’s decision, the Minister rejected calls for a statutory inquiry on the grounds that it would take“three, four or five years”—[Official Report, 27 April 2021; Vol. 693, c. 254.]Can he tell us what has happened to change his mind?The horrific miscarriage of justice did not happen overnight. For a decade, we have known that there were serious problems with the Horizon system, but the Post Office denied all wrongdoing, pursuing the victims and imposing huge lawyers’ fees on the claimants. Even after the High Court ruling vindicated postmasters in 2019, the Government refused to act. The next step has been delayed and victims’ lives have been disrupted by this Government.
- I did not want to interrupt the hon. Lady, but Mr Speaker would be annoyed with me if I did not point out that she has taken a minute longer than she ought to have had, and that is a minute that will not be taken later today by some other Member who wishes to speak.
- I send my best wishes to the hon. Member for Newcastle upon Tyne Central (Chi Onwurah); I understand why she cannot be here. I appreciate the response from the hon. Member for Feltham and Heston (Seema Malhotra), and I will try to answer some of her questions.The hon. Lady talked about Ministers’ role in this. Clearly, the role of our Department, Government and Ministers will be included in the inquiry. We do want to learn the lessons, and that will be the case, but as we have seen from the judgment, the Post Office consistently maintained that Horizon was robust and was misguided in its approach to the issue, leading to the decision to prosecute these postmasters. We pressed management on issues regarding complaints brought by postmasters about Horizon and received repeated assurances that the system was reliable. As I say, the inquiry will look into that.In terms of the Government’s response, we clearly recognise the impact that convictions have had on individual postmasters and their families. That is why the Prime Minister and I met with a small group of them last month, to hear directly from them. They had some incredibly tragic and terrible stories, and I can understand why they find it difficult to trust anybody in this regard after many, many years of difficulty and the impossible situation that they and their families have been in.On Horizon itself, the Post Office is looking into that. It cannot, unfortunately, just switch off a system and change midstream, but clearly it will be looking to work on the successor CRM—customer relationship management —system. Yes, the terms of reference and the statutory footing allow Sir Wyn to compel people to give evidence and documents, and there are sanctions on them if they should fail to do so, under the Inquiries Act 2005. One of the reasons for that, as we move to the second stage and, I hope, engage more sub-postmasters to give their stories, is that we want to give them the confidence that people will be giving their evidence. I must say that, to date still, everybody involved in this whom Sir Wyn has asked to do so has given their full undertaking and worked on it. Nobody has resiled from the inquiry, but it is important that we do this.
- I warmly congratulate the Minister on his statement, and I think it is fantastic news for sub-postmasters. I would like to thank the Prime Minister for meeting sub-postmasters, including my constituent Tracy Felstead, and for understanding the terrible injustice that they have suffered for so long. Can the Minister assure me that compensation will be paid to all those affected, including those who were party to the horrendous struggle that was the group litigation? Does he agree that these sub-postmasters should not be penalised for shining a light on the conduct of the Post Office, and they should not be required to fund the pivotal judgment of Mr Justice Fraser, without which no convictions would have been overturned? Can he please agree with me that compensation must be fair to all sub-postmasters?
- I thank my hon. Friend, who has been really dogged in her championing of Tracy Felstead and many others who have been affected. I was pleased to meet Tracy—who gave such tragic testimony—alongside the Prime Minister. On compensation, the Post Office is engaging in the compensation process. I will, in my regular meetings with the Post Office, make sure that we keep on top of that, because we want to ensure justice and fair compensation for all who have been affected.
- It is a real pleasure to follow the hon. Member for Telford (Lucy Allan), who is a member of the all-party parliamentary group on post offices. I thank the Minister for advance sight of his statement, and I welcome the statement that the inquiry into the Post Office’s Horizon scandal is to be put on a statutory footing—something for which MPs across the Chamber have been calling for months. However, if this is the case, it should have been set out properly by the UK Government in Parliament, not briefed beforehand to the press.The Horizon scandal has been a serious miscarriage of justice, potentially carried out knowingly. It is a grave injustice that some, sadly, have taken their own lives and others have been imprisoned. The SNP has repeatedly called for a judge-led statutory inquiry, and the Minister and I have had discussions on this previously. Entire lives have been ruined, and it is critical—critical—that no stone is left unturned in securing real justice for those affected. The UK Government must agree to meet all costs as a result of any compensation due, so that the post office network is not impacted. We must not lose sight of that. We absolutely welcome the statutory inquiry, as I have said, but we must also make certain that those responsible are held to account. This is really important.I want to thank the Justice for Subpostmasters Alliance, the Communication Workers Union and the long-standing members of the APPG, who have fought tirelessly for this outcome. I look forward to seeing the Minister next week in my capacity as chair of the APPG, when he comes to talk to us further.
- I always welcome meeting the hon. Lady, and I congratulate her on her work for the all-party group. I appreciate her support for this change and I absolutely agree with her that we have to make sure that in getting justice and righting the wrongs of the past we do not jeopardise the future of the Post Office, with the social value it gives, as well as the economic value, for so many people across this country. We must make sure that we restore confidence for not only future postmasters within the network but its customers, so that it is there for many years to come.
- I am delighted that the Minister has announced that we will get the full public inquiry that we have needed for so long, to finally draw a line under this tragic fiasco and get to the truth. Following his and the Prime Minister’s recent meeting with a few of the sub-postmasters caught up in this debacle, including my constituents Mr and Mrs Rudkin, does my hon. Friend agree that the sub-postmasters are ordinary, honest and credible people, who have been caught up in incredible events that were not of their making and not their responsibility, but which have had a massive detrimental effect on their lives and the lives of their families?
- Let me again thank my hon. Friend for his work in raising the case of Mr and Mrs Rudkin and other postmasters, and he is right. Mr Rudkin was one of the leading witnesses who blew a hole in the evidence and this led to success for those postmasters in various stages of the court case and, unfortunately, Mrs Rudkin was left to carry the can in her experience as postmaster. She is very typical of many postmasters who have been affected: ordinary people who are stalwarts of their villages, towns, communities. That is why we must redouble our efforts to seek justice and fair compensation for them.
- I thank the Minister for an advance copy of the statement. My Select Committee and I called for this inquiry to be on a statutory footing from the beginning and so we welcome the statement today. However, if I have understood it correctly, the terms of reference are still being decided by Ministers and not by the independent chair, Sir Wyn Williams—why?
- No, that is incorrect; this is being done in collaboration with Sir Wyn. I spoke to Sir Wyn shortly after the Court of Appeal’s judgment and comments. He asked for more powers—not just statutory ones but to be able to look further back—and that is why we made changes. Although the inquiry would not explore matters of substantive criminal law, which of course should be decided by the criminal courts, he felt that he could look at this better, first, within the statutory footing and, secondly, with some of the changes to the terms of reference that we have expanded today. That was done in collaboration with Sir Wyn.
- Just a few weeks ago, I asked about this at Prime Minister’s questions, so I thank the Government for listening and I welcome the statutory footing. Justice and peace of mind is one thing, but adequate compensation for the victims is another. Fujitsu must not be let off the hook. What assessment has the Minister made to ensure that Fujitsu contributes to the fund to ensure that people who are still hugely at loss are properly compensated?
- I thank my hon. Friend, a former postmaster himself, for that. He absolutely understands the situation and has been a dogged champion. We did say that if things should change, we would change. Things have clearly changed as a result of the Court of Appeal judgment. He raises a pertinent point about Fujitsu. It is for Post Office Ltd to work out the terms of compensation around this issue, but I am sure it will hear what he said and raise that incredibly pertinent point as redress is sought.
- I thank the Minister for his statement. I also give him credit: in the 10-plus years that I, the hon. Member for North West Leicestershire (Andrew Bridgen) and Lord Arbuthnot have been campaigning on this issue, this is the first time that a Minister has admitted that when things go wrong he will change them.It is right that we get full disclosure of the facts and justice for those who have been wronged. May I ask the Minister about disclosure? Will that include the ministerial submissions from the Post Office throughout this scandal and the role of the Government shareholder on the board of the Post Office? That is key to the reasons why things were not questioned. Also remember that in 2019 the Post Office spent £100 million of taxpayers’ money defending a civil case that was, frankly, completely indefensible.I stress one last thing to the Minister. I know that Ministers like to hide behind the Post Office, saying that this is its fault. It is not: it is a wholly owned company of the Government. The Government have to take responsibility for some of this; they cannot just blame the Post Office.
- I thank the right hon. Gentleman, who has rightly been pushing on behalf of postmasters in general for a number of years.Yes, nothing is off the table. We want to get justice and answers for people, and that clearly includes the role of the Government and shareholders. The fact is that, yes, we are the single shareholder through UK Government Investments, but that allows Post Office Ltd to work operationally independently of the Government —otherwise, there would be no point in splitting it that way. None the less, as I say, our representatives on the board have been asking that question. We were assured that Horizon was robust in all these areas. None the less, within the inquiry those questions will no doubt be asked and I expect them to be answered.
- I warmly welcome my hon. Friend’s statement and the work being undertaken by Sir Wyn in what is now a statutory inquiry. It is right that the inquiry should look at how on earth this was allowed to happen in the first place—most pertinently, why the Post Office and Fujitsu completely ignored the red flags being waved by trusted sub-postmasters across the network.Compensation will be key. Sub-postmistress Isabella Wall from Barrow lost her home and business and was left with nothing. Can my hon. Friend guarantee that fair compensation for those who have been completely wronged through this process will be the focus of the Government?