Commons Sense

House of Commons · Ministerial Statement

Post Office Compensation

18 September 2023 · 13 other contributors

Opened by Kevin Hollinrake Con Thirsk and Malton

Standards & Ethics

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Kevin Hollinrake raised concerns about post office compensation in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • The Government will provide postmasters with an optional up front compensation offer of 600,000 for those whose convictions based on Horizon evidence have been overturned.
  • This sum will be paid net of any interim payments or settlements received previously.
  • To date, 86 convictions have been overturned with over 21 million in compensation already distributed.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

Kevin Hollinrake

The Minister announced that the Government will provide postmasters with an optional up-front compensation offer of £600,000 for those whose convictions based on Horizon evidence have been overturned. This sum is a fixed amount requiring no further evidence beyond demonstrating an overturned conviction and it will be paid net of any interim payments or settlements received previously. To date, 86 convictions have been overturned with over £21 million in compensation already distributed under the current process. The Government aims to expedite fair compensation for postmasters through this new offer while continuing to fund legal costs and encourage full assessments if preferred by individuals. Additionally, the Minister highlighted progress made under other compensation schemes including the Horizon shortfall scheme, GLO scheme, and interim payments with £79 million, £22 million, and £19.5 million paid respectively. The Post Office is also implementing a remediation model for claim assessment involving an independent assessor to enhance transparency.

Other contributors (13)
  • Sarah Jones Lab Croydon West

    Question

    How many individuals does the Minister anticipate will take up this offer? What assurances can he provide regarding sufficient compensation for those with overturned convictions?

    Minister reply

    The number of postmasters expected to accept the £600,000 offer is uncertain. The Government aims to ensure that all postmasters receive fair compensation whether through the new offer or a full assessment process if they prefer higher amounts due to specific circumstances.

  • Sarah Jones Lab Croydon West

    Question

    What steps will be taken to expedite reaching out and engaging with those whose convictions have not been overturned?

    Minister reply

    The Government is committed to continued outreach efforts and encourages all postmasters who believe their conviction may be unsafe to come forward for appeal processes. The aim is to provide transparency about the available compensation routes to encourage more individuals to seek overturning their convictions.

  • Sarah Jones Lab Croydon West

    Question

    The MP thanked the Minister and acknowledged campaigners' efforts. She asked about the number of anticipated takers for the compensation offer, requested assurances on adequate levels of compensation especially in cases with high costs, and questioned the lack of progress for those not yet having their convictions overturned.

    Minister reply

    The Minister welcomed the shadow Minister to her role and acknowledged campaigners' efforts. He stated that 86 people have come forward out of an estimated 600 affected individuals. The compensation scheme offers a quicker route, avoiding lengthy assessments or legal engagement unless preferred by claimants. He clarified that while full assessment remains an option for higher claims, those who qualify can also opt for the £600,000 minimum offer.

  • Holly Mumby-Croft

    Question

    The MP asked if compensation payments will be tax-free and if the process would be as smooth as possible.

    Minister reply

    The Minister confirmed that the scheme ensures no income, capital gains, national insurance contributions, inheritance or VAT on these compensation payments. There is also a benefit disregard in place to ensure fairness for those involved.

  • Kirsty Blackman SNP Aberdeen North

    Question

    The MP echoed previous comments and thanked the Minister, questioning if full assessment claimants will get at least £600,000 and asked for clarity on compensation offers to those who have passed away.

    Minister reply

    The Minister acknowledged no financial compensation can fully return lost years or reunite families. He stated that a minimum of £600,000 has been set for overturned convictions, but full assessment remains an option. For deceased individuals with lower awards, their settlements will be topped up to £600,000.

  • Mark Pawsey

    Question

    The MP asked if the matter could now conclude, allowing affected postmasters to live normally.

    Minister reply

    The Minister thanked the MP for his work and confirmed that this scheme aims to allow people to draw a line under their ordeal quickly. The intention is for those who come forward to be able to move on with their lives.

  • Clive Efford Lab Eltham and Chislehurst

    Question

    I pay tribute to the Minister for his handling of the matter. I also pay tribute to his predecessor, the hon. Member for Sutton and Cheam (Paul Scully), to Lord Arbuthnot and to my right hon. Friend the Member for North Durham (Mr Jones): they have done an excellent job on what is an unbelievable scandal. My constituent was convicted and went to prison under the Horizon scheme, but the Post Office has never accepted that it was Horizon evidence that sent him to prison. What position does that leave him in? Does the Minister agree that it would not be fair for the corrupt Post Office to be able to deny that person the compensation to which he is clearly entitled?

    Minister reply

    I echo the hon. Gentleman’s sentiments about my predecessors, who did a brilliant job. The hon. Gentleman makes a very interesting point about Horizon evidence. I am happy to meet him to discuss his concern about the case. We do not interfere with what the courts decide, but we are keen to help wherever we can.

  • Richard Foord Lib Dem Honiton and Sidmouth

    Question

    My question is slightly related to the previous one: some of the postmasters who were dismissed because of the scandal were not formally prosecuted, but still faced dismissal. It has been incredibly difficult for those people to get compensation, and this whole ordeal continues to drag on. Can the Minister outline what steps have been taken to ensure that everybody receives swift and fair compensation?

    Minister reply

    The hon. Gentleman raises an important point. We are looking at every possible way to expedite not just the overturned convictions scheme, but also other schemes such as the historical shortfall scheme (99% of cases made offers) and the group litigation order scheme which is open for claims right now.

  • Seema Malhotra Lab Co-op Feltham and Heston

    Question

    Decent, honest people have had their lives torn apart. They have been put in prison, they have been made to wait years for justice. Could the Minister provide an estimate of the timescale for compensation completion for those he considers eligible and not yet fully compensated? Could he also update the House on the next phase of the public inquiry?

    Minister reply

    We hope to deliver all compensation by our August 2024 deadline, but we are keen to deliver it before that. The public inquiry is independent; Sir Wyn Williams will ensure people give evidence in good time. We want to identify people who were responsible for this scandal and hold them to account.

  • Andrew Bridgen

    Question

    Within weeks of being elected to this House in 2010 I had a meeting with my constituents, Mr and Mrs Rudkin, and was told how they had been treated at the Post Office. They were one of the first nine to have their criminal convictions overturned—back in December 2021—but it is clear that hundreds have not had their convictions overturned yet and are not able to claim compensation. Let us get on, get them the compensation they deserve and bring this sorry episode to an end.

    Minister reply

    We absolutely agree with the hon. Gentleman. We want to ensure that convictions on the basis of Horizon evidence are overturned. Sadly, we cannot do that without people coming forward. The united call from this House is for those who have not yet come forward: please come forward; if your conviction is unsafe, it will be overturned and compensation will be waiting.

  • Sammy Wilson DUP East Antrim

    Question

    No compensation will ever reflect the financial losses, family disruption, social stigma and mental trauma that people were put through as a result of deliberate lying by the Post Office and Fujitsu about Horizon. I hope that he will ensure that those who are guilty of this gross miscarriage of justice do not escape the process unscathed.

    Minister reply

    The right hon. Gentleman is absolutely right that no amount of compensation could really make up for the destruction of lives. People in the Post Office realised what was going on 10 years ago but said nothing despite people being in jail. It is scandalous, and I join his call for people responsible to be held to account.

  • Duncan Baker

    Question

    This whole episode has shown very clearly just how beloved the institution of our post office network is—I can say that as a former postmaster. The banks will not stop what they are doing; their trend is to remove branches from high streets up and down the land. Of course, that puts enormous pressure on the post office network which has to pick up the slack. Can he assure me that he will put every effort into ensuring that post offices are invested in properly so that they can be the future dealer of authorised financial services on our high streets?

    Minister reply

    I could not agree more with my hon. Friend. The post office network is held in such high regard across the country and has a very bright future as long as it is properly remunerated. I have raised this issue with banks, UK Finance and other Ministers to ensure that we get the best possible deal.

Shadow Comment

Sarah Jones

The Shadow Minister acknowledged the progress made by the Government but raised concerns about the number of postmasters expected to accept the new compensation offer and whether the £600,000 figure is sufficient. She also questioned what would happen if individuals opt for a full assessment process leading to higher compensation amounts. Moreover, she urged the Government to address the issue of those whose convictions have not yet been overturned, expressing frustration at the lack of progress in reaching out and contacting them.

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