Friday, 12 January 2024

Campaign reply - Post Office Horizon Scandal

Thank you for contacting me about the Post Office Horizon Scandal.

Like many of my Parliamentary colleagues across the House, I am appalled by the treatment of the sub-postmasters who were accused of theft based on flawed evidence from the Horizon IT system. Victims' accounts of the impact of these prosecutions are harrowing: some served prison sentences; many had their livelihoods and life savings decimated; marriages broke down; four committed suicide; others passed away before being able to clear their names; and many were ostracised by their local communities and as a result failed to find alternative work.

While we cannot undo the damage that has been done, we must establish what went wrong. I am aware that nobody at either the Post Office or Fujitsu has been held directly accountable. However, in light of the rulings, the Government converted a public inquiry into the affair to a statutory footing which allows its Chair, Sir Wyn Williams, the necessary powers and time to conduct an in-depth analysis of the decision-making processes that led to the scandal. I understand that Sir Wyn has publish his interim report, and my ministerial colleagues will provide a formal response shortly. You can read Sir Wyn’s interim report here: https://www.postofficehorizoninquiry.org.uk/interim-report-compensation-17-july-2023

The Post Office (Horizon System) Compensation Bill will ensure that the trailblazers who exposed the scandal do not miss out on compensation because of an arbitrary deadline. The Government is determined to make compensation claims as soon as possible, and by the current deadline of August 2024. However, time needs to be taken to assess more complex claims, so postmasters receive full and fair compensation and are not unduly rushed into making a decision on their claims.

To date, more than £148 million has been paid to 2,700 victims across all compensation schemes, 93 convictions have been overturned and, of those, 30 have agreed full and final settlements. Just over £30 million has been paid out in compensation to those with overturned convictions, including interim payments.

Of the original 555 courageous postmasters who took the Post Office to court and who first brought the Horizon scandal into the public eye, £27 million has been paid out to 477 claimants in addition to the net £11 million received through the December 2019 settlement. Forty-seven members of the original Group Litigation Order (GLO) group have also received compensation following the overturning of their convictions, totalling more than £17 million. The Government has received full claim forms from 59 of those postmasters who are eligible for the GLO scheme and issued 43 offers. There have been 21 full and final settlements paid and a further seven full and final settlements accepted. That brings the total number of accepted full and final GLO settlements to 28.

It is worth noting that the 2,417 postmasters who claimed through the original Horizon shortfall scheme have all received offers of compensation. Around 85 per cent have accepted those offers, worth over £107 million. In total, over £91 million has been paid out through the scheme, with the Post Office now dealing with late applications and with cases where initial offers were not accepted.

The harm that these prosecutions have wreaked on the affected families over the past 20 years is irreparable. Lessons should and will be learnt to ensure that an injustice of this magnitude never happens again.

On January 10th, 2024, the Parliamentary Under-Secretary of State for Business and Trade announced that the government have set a target of issuing initial offers for 90% of group litigation order cases within 40 days of receiving a completed application. This followed an announcement from November 2023 that the government would be introducing a £600,000 up-front offer for claims with overturned convictions, which people could choose to take rather than going through the detailed assessment process. This has already made a real difference and with the help of minimum payments has enabled the government to increase the number of finalised cases from 5 to 30.

The government are now taking additional steps and will increase the available payment to an upfront offer of £75,000, which will save recipients from having to go through the assessment process. However, as with overturned convictions, if they believe they are entitled to more, they are welcome to continue with the full assessment. Not only will this allow the Department to focus its resources on the larger cases, but it will allow claimants’ lawyers to do the same. The pace at which claims can be entered into the scheme is the key constraint to how quickly they can be settled. The up-front offer is smaller for the GLO scheme than for the overturned convictions because the claims tend to be smaller, and it is estimated that perhaps a third of GLO claimants may want to consider this route.

Regarding the number of convictions, the government looking to bring forward legislation to overturn convictions of all those convicted in England and Wales based on Post Office evidence given during the Horizon scandal.

Hundreds of convictions remain extant. Some of those convictions will have relied on evidence from the discredited Horizon system; others will have been the result of appalling failures of the Post Office’s investigation and prosecution functions. The evidence already emerging from Sir Wyn Williams’s inquiry has shown not only incompetence, but malevolence in many of their actions. This evidence was not available to the courts when they made their decisions on individual cases. So far, 95 out of more than 900 convictions have been overturned. We know that postmasters have been reluctant to apply to have their convictions overturned—many of them have decided that they have been through enough and cannot face further engagement with authority. Many fear having their hopes raised, only for them to be dashed yet again.

The Government are considering whether to include the small number of cases that have already been considered by the appeals courts and their convictions upheld. The Government recognises that this is an exceptional step, however these are exceptional circumstances. Previously, people with convictions that have been overturned are offered a choice between having their compensation individually assessed or settling on an up-front offer of £600,000. As far as possible, we want to avoid guilty people walking away with hundreds of thousands of pounds of public money, but we cannot make the provision of compensation subject to a detailed examination of guilt. We have concluded that to ask the court to do that again would be unfair to individuals.

We cannot turn this into an administrative exercise. All we ask is that as part of their claims for compensation, postmasters sign a statement to the effect that they did not commit the crimes of which they are accused. Anyone subsequently found to have signed such a statement untruthfully will be putting themselves at risk of prosecution for fraud. It may not be fool proof, but this is a proportionate step that respects the ordeal that these people have already suffered. It means that an honest postmaster will have his or her conviction overturned and, just by signing one document, can secure compensation.

I have received assurances that the Government wants to see all victims affected by the Post Office Horizon IT scandal compensated fairly and swiftly. We will continue to work across Government and with the Post Office to ensure the postmasters get the full compensation they deserve, and that payments and associated taxes are fair and proportionate. The Government's compensation scheme for GLO case postmasters has opened and details, including information on how to apply, can be found online at: https://www.gov.uk/government/publications/compensation-scheme-for-group-litigation-order-case-postmasters.

As you may be aware, Paula Vennells has confirmed she will hand back her CBE. I believe that this is the right decision. The Government's focus continues to be on ensuring all those whose lives were torn apart have swifter access to compensation and justice.

The Government has been clear that it should not be the taxpayer alone who funds these compensation schemes. The inquiry is committed to concluding by the end of this year and reporting shortly after. At that point, Ministers will know who was responsible for what, and they should then be able to identify who can be made responsible through potential financial contributions, rather than the taxpayer alone.

Once again, thank you for taking the time to write to me about the Post office Horizon scandal.

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