Post Office Horizon: Redress

Statement

The following Statement was made in the House of Commons on Monday 9 September.

“With your permission, Madam Deputy Speaker, I would like to update the House on the Government’s response to the Horizon scandal.

My priority as the new Secretary of State is to ensure that victims of the scandal receive the redress that they deserve. Over the past few weeks, I have begun meeting with some of the postmasters whose lives have been so badly damaged by those events. Their stories are harrowing, but their resilience and steadfastness in seeking justice are inspiring. I am also grateful for their candour in sharing insights on how the various compensation schemes can be improved.

May I make a personal point, Madam Deputy Speaker? I know I speak for honourable Members across the House when I say that it fills me with sadness to have to stand here today and address such a significant failure of the state. The role of government must be to do right, seek justice and defend the oppressed, yet Governments have too often had to be forced into action by brave, tireless and resilient campaigning. Once again, I pay tribute to the Justice for Subpostmasters Alliance, and to campaigners such as Jo Hamilton, Lee Castleton and Sir Alan Bates—incidentally, I add my personal congratulations to Sir Alan on his recent wedding. Without their tireless efforts, justice may well never have been done in this case. As we stand here today, in the shadow not just of this scandal but those of Grenfell, infected blood and several more, I know that it is the firm conviction of everyone in this House that we must do better. This is an issue not of politics but of justice.

In that spirit, I cannot speak of the new Government’s work to address this wrong without again acknowledging and appreciating the work of Lord Arbuthnot and the new Lord Beamish—formerly the Member for North Durham—as well as that of my friend the honourable Member for Thirsk and Malton (Kevin Hollinrake) as Minister. The announcements that we make today are built on their efforts to hasten redress payments and quash wrongful convictions.

Earlier in the summer, the new Government announced the launch of the Horizon conviction redress scheme. I am pleased to report that the first payments have been issued and good progress made on processing the claims received to date. As was the case for the group litigation order compensation scheme, the department will be setting a target to make, within 40 working days, the first offer to 90% of those who have submitted a full claim. Additionally, the Post Office has now settled over 50% of cases on the overturned convictions scheme, with 57 out of 111 cases fully settled. The department has also now received over 50% of GLO claims and settled over 200 of them.

Progress has also been made on implementing the £75,000 fixed-sum awards on the Horizon shortfall scheme. As of 30 August, over 1,350 claimants who had previously settled below the £75,000 threshold have been offered top-ups to bring them to that amount, and the Post Office will shortly begin making fixed-sum offers to new claimants. Those interventions will have a significant impact on ensuring that postmasters can access redress swiftly and simply. However, we recognise that this option will not suit everyone and does not address all the concerns raised by postmasters and their representatives. That is why we are taking further action today.

The Horizon Compensation Advisory Board recommended last year that we introduce an independent appeals process for the Horizon shortfall scheme. Today I am pleased to announce that we have accepted that recommendation. That appeals process will enable claimants who have settled their claim under the HSS to have their case reassessed, with the benefit of any new information that they were not able to include in the original application. It will be delivered in-house by my department, and we will apply the lessons learned from redress schemes to date to ensure that the process is easy for postmasters to engage with and that outcomes are delivered at pace. We will announce further details in the coming months.

There will be no obligation for postmasters to appeal their settlement, and no doubt many will be content that their claims have been resolved fairly. I know that financial redress will never fully compensate victims for their suffering, but we want to help bring some closure to postmasters as soon as we can, which is why we will establish the new appeals process as quickly as possible.

In summary, the new Government will do everything in our power to deliver justice for postmasters, to bring them closure and to ensure that such a national tragedy is never allowed to happen again. I commend this Statement to the House.”

15:53:00

My Lords, I thank the Secretary of State for yesterday’s Statement. It does not need to be repeated today but our team appreciated seeing a copy of it in advance. We share the view of this whole House that compensation must be delivered promptly and with minimum friction. We all, I think, welcome the new appeals process for those who have historically settled their claim under the Horizon short- fall scheme set out in this Statement. Clearly, we also welcome the implementation of the Horizon Compensation Advisory Board’s work. However, we have a few questions coming from this Statement; I am sure that some have them have been covered in the intervening period but I would be grateful if the Minister could enlighten the House. The new appeals process will, as we understand it, be open to claimants who have settled their claims but who have new information to present. However, all of us in this House know that these processes are cumbersome and complex. The question is whether the process can be open to all claimants and not just those with so-called new information—and of course the categorisation of new information is in itself complex. To clarify, if people choose the £75,000 top-up, can they still appeal? When will the appeals process be up and running, and can the Minister confirm that those individuals will be entitled to legal representation and general support? I appreciate that we may need to be written to in response to some of those questions. On compensation payments, can the Minister comment on the fact that, as I understand it, only six claims have been offered through the Horizon convictions redress scheme? As I understand it, no full and final settlements have been reached, which is a bit extraordinary, and we should look very closely at this. I hope that the Minister does not mind the pressure that this House will bring to bear on her to answer that question. I also understand that only 130 letters of around 700 quashing convictions have been sent. Can the Minister comment on this? Again, that seems an extremely low number, given that we were debating this issue three months ago and the Government then were very committed to sending the letters out as quickly as possible. I am sure that we fully understand that there are some people who may be hard to contact, or there may be specific issues around communication, but this is really the wrong way around. The last Government were working with Sir Gary Hickinbottom to be appointed across all schemes to expedite claims. I am not sure whether that has been confirmed; it may have been, but if the Minister could confirm that, it would be extremely helpful. Finally, I am afraid that it is understood via my colleagues, and the extraordinarily strong work previously done by Kevin Hollinrake in the other place in communication with the victims of this situation, that the process is being slowed—as has historically been the case but really should not be the case now—by lawyers arguing with lawyers. Are we really moving fast enough, and do we have a proper culture among the public servants of the department, and in the Post Office and the various different organisations helping to expedite this process, to ensure that we are doing the right thing as rapidly as possible? For all Members of this House, how we deal as a nation with this disgraceful scandal will be the mark to which we will be judged. No one party, Minister or official can carry the specific blame; it really was an entire system at fault—a statist culture of bureaucratic indifference of the worst sort. I hope that the Government will continue to look into the culture that allowed these sorts of situations to arise, and particularly into the role of various government departments, civil servants and the public prosecutor’s office. Who at the top of the tree should bear responsibility for these actions, and what are we going to do, very importantly, to change the culture and the lines of the reporting? I very much commit this side of the House—the Opposition—to work closely with the Government to make sure that we are as supportive and collaborative as possible, supporting the Minister in making sure that we get redress for the victims of this terrible tragedy.

My Lords, I echo the comments of the noble Lord, Lord Johnson, about the Government’s Statement being very welcome and the attempt to try to unscramble some of the complexities of the scheme, but from these Benches too we are concerned about the low level of conclusion of cases, despite the process. I echo his questions about how this is being managed. Mindful that there are other inquiry redress processes that have hit problems and have had to repeatedly be redesigned, my first question to the Minister is to ask whether she is absolutely convinced that she has addressed all of them. I shall come on to a couple of specific points. Chris Head, a former sub-postmaster who lost everything when he was wrongly accused of theft, has spoken up since the publication of the statements with some concerns, saying: “The remit of the appeal process cannot be restricted to only those that produce new evidence. Many people have been materially disadvantaged by not having access to legal advice and interim payments that were only introduced in November 2022. This appeals mechanism must be available to everyone that has settled claims since the scheme launched in 2020 to ensure they are properly compensated back to a position they would have been in had the scandal not happened”. Members of your Lordships’ House, including the Minister, I think, have repeatedly raised concerns about the difference between these various schemes for different sub-postmasters and staff. While it is good that the Government want to have an independent appeals process for the HSS, I remind her that the complex redress schemes arising out of other tragic scandals have had to be adapted. It took the work done on the Victims and Prisoners Act to create the infected blood compensation scheme earlier this year—with an enormous amount of energy—to untangle all the different parts of that redress scheme. Does the Minister recognise that Mr Head and others have valid concerns about inconsistencies between the schemes, and that trying to sort all this out now, at pace, as was done with the infected blood scheme, must be a priority? I want to raise two other issues briefly. First, on the predecessor package to Horizon, known as Capture, I raised the issue of the postmasters and staff who lost their jobs because of Capture, some of whom were also prosecuted but many of whom were sacked. The Independent newspaper and ITN have given voice to these victims. When will the Government’s own investigation into Capture be published and when will they update your Lordships’ House on its findings? Should redress be due, will it be incorporated into the existing postmasters’ scheme, or will there have to be a brand-new one? Finally, in July, my noble friend Lord Fox raised again the issue of those not included in the overturning of convictions because they had appealed their cases and lost in the Appeal Court. Both he and I had helpful discussions with the previous Minister. The concern was expressed that the judiciary, in particular, had felt it was wrong for this group of victims to have their cases overturned under the legislation in the summer, because there was some merit to other parts of the cases brought against them. Yet, that question was not asked of any other case whatever, only those that went to appeal. Are the Government prepared to reconsider that? What now exists in the redress scheme is a small group of people who have to have an exceptionally high bar of going to the Criminal Cases Review Commission, hoping that it will refer their cases back to the Court of Appeal. This seems unfair and particularly long term, which means these victims will not get resolution for a long time to come.

My Lords, first, I thank the noble Lords for raising these points on what is clearly a very important issue. I have to say that it upsets me greatly to hear of the harrowing experiences postmasters faced over so many years. I understand and have the utmost respect for their wish for full, fair, speedy redress, for answers from the inquiry about what went wrong and for people to be properly held to account for what has happened. This scandal represents one of the biggest miscarriages of justice of our time, and it is crucial that we get redress for those affected as quickly as possible. This is what we are focusing on as a Government—fair and timely redress for postmasters—and we will continue to work with and support the Post Office Horizon inquiry as it carries out its vital work in establishing the facts about what went wrong in this scandal. Before I turn to the specific questions raised, I pay tribute to the tireless campaigning of the Justice for Subpostmasters Alliance, to all the many postmasters who have championed this cause and to Sir Alan Bates and Lady Suzanne, whom I congratulate on their recent wedding. I also thank members of the advisory board, including the noble Lords, Lord Beamish and Lord Arbuthnot, who are members of the Horizon advisory board. I thank them for their advocacy for postmasters affected by the scandal over many years and for their hard work in helping the Government improve the delivery of redress. We shall continue to listen to their advice. Turning to the subject in hand and the questions the noble Lord and the noble Baroness asked, we will look to establish the new Horizon shortfall scheme appeal process announced yesterday as quickly as possible. Postmasters’ stories are harrowing, but their resilience and steadfastness in seeking justice are inspiring. The Government’s priority is ensuring that the victims of the scandal receive the redress they deserve. We want to help bring some closure to postmasters as soon as we can. I cannot give an exact timeline today, but it is likely that it will be launched in the new year. We will keep postmasters updated on its development. I can reassure noble Lords that legal advice will be available from the outset for those who enter the appeals process. We want the appeals process to be available to all those who are not satisfied that they received the correct amount of compensation. As in the case of the broader design of the process, we will engage with postmasters and the advisory board on the detailed approach before agreeing and setting out in due course details on eligibility criteria. The appeals process is intended to support, in particular, those who have settled their claim but feel that they were unable to set it out in full in their initial application. There are a variety of reasons why postmasters may have been unable to do so, and these will be considered when designing the process and its eligibility criteria. It will also be open to more recent applicants who have not yet settled and are unhappy with the offer they have received from the Post Office. However, on the specific question from the noble Lord, those who have accepted £75,000 are not eligible for an appeal. They were told this at the outset, when they accepted the payment. The Government are committed to ensuring that we support postmasters affected by the Horizon scandal to get the redress they deserve. We plan to continue to work in a cross-party way on this important national priority, which of course was highlighted so well by the ITV drama “Mr Bates vs. The Post Office” earlier this year, and in last night’s follow-up documentary. The noble Baroness asked about the investigation into the Capture software. We expect to receive this report shortly, and the conclusion of this exercise will support the Government in determining whether postmasters faced detriment due to the Capture system and what steps should be taken based on the conclusions of the investigation. The noble Lord asked how many payments have been made for the Horizon convictions redress scheme. As of 30 August, we have made six interim payments totalling £1.2 million. As of 6 September, 178 letters have been issued by the MoJ. On the issue of the MoJ letters, as the Secretary of the State said yesterday, the state of the records has, sadly, delayed the process. This is a real frustration, but I hope that noble Lords will understand that, after everything people have been through, we should not take the risk of sending out a letter incorrectly. The Government are grateful for the support of the HSS appeals mechanism. To all those who think that this is not moving fast enough, I can reassure them that we are moving at speed on this issue. There are a huge number of technical and legal issues that we are still ironing out, but we understand the need to move and resolve these issues at speed. In response to the noble Lord’s point about cultural issues, I agree they are important, and I hope they will come out in the final phase of Sir Wyn Williams’s inquiry. Hopefully, we can follow it up and act on it.

16:08:00

My Lords, I served on the Select Committee on the Inquiries Act, and, as outlined by the noble Baroness, Lady Brinton, it is clear that there are a number of schemes set up in a number of ways. Although, as in court cases, the compensation arises from very different circumstances, there could be standard tariffs or set amounts in certain instances. Can the Minister assure us that there are meetings between the departments running these schemes, and that we are not going to see headlines about the care of someone in a home, saying they got this amount from one scheme and that amount from another? We need to make sure that every avenue is sealed off, so that the compensation is fair.

The noble Baroness makes a very fair point. We do have a number of schemes with different eligibility criteria. We are doing everything we can to standardise them and to make sure that people are treated fairly. Of course, people are at different stages in the process. Some have already started their applications, while others have yet to do so. We are doing everything we can to make sure that everyone is treated fairly and in the way they should be, following this terrible scandal.

My Lords, I thank my noble friend the Minister for her very detailed Statement in relation to this egregious issue that goes back so many years. So many sub-postmasters were wrongly convicted and wrongly maligned. Will sub-postmasters in Northern Ireland be eligible to apply to this appeals system? They were similarly affected and some of them were similarly prosecuted. Also, some sub-postmasters have said to me that the original compensation scheme has been too slow in reaching them. So I would like assurances that the appeals system, where it applies, is acted on expeditiously.

Again, my noble friend makes a very important point about speed. I think I have reiterated that we absolutely get and understand that message. I hope that, when people come to look back on the actions we have taken, further delays will not be one of the criticisms that come to mind, because I really feel that we are acting at the absolute top rate that we possibly can. With regard to where there are specific arrangements in Northern Ireland, I apologise that I do not know the answer to that. I will write to the noble Baroness.

My Lords, in my capacity as an MP in the other place, I came across a number of cases of sub-postmasters and sub-postmistresses who were investigated and subject to the most enormous amount of stress and financial hardship, but then simply handed in their lease because they had had enough. They have since been completely vindicated. Many of this particular cohort appear to be falling by the wayside in terms of compensation. What do HMG plan to do about them?

My Lords, I hope that the individuals to which the noble Lord refers will be picked up by one of the number of schemes we now have. We now have what I hope is a comprehensive set of schemes that apply to all circumstances, so my understanding is that people who left because they were suffering hardship while not necessarily having a conviction should be covered by the scheme.

I beg to move that the House be adjourned for a period of five minutes.

16:12:00

Sitting suspended.