Commons Sense

House of Commons · Ministerial Statement

Post Office Governance and Horizon Compensation Schemes

19 February 2024 · 30 other contributors

Opened by Kemi Badenoch Con North West Essex

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

At a glance

Kemi Badenoch raised concerns about post office governance and horizon compensation schemes in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • Kemi Badenoch addressed serious allegations against the Government regarding the Post Office and the Horizon compensation schemes.
  • The minister denied refusing to apologise to Henry Staunton after his dismissal from Sky News.
  • Staunton's dismissal was not due to someone taking the blame for the Horizon scandal, according to the minister.

How the debate unfolded

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

Government Statement

In a statement to the House, Kemi Badenoch addressed serious allegations made against the Government regarding the Post Office and its handling of the Horizon compensation schemes. She denied claims that she refused to apologise to Henry Staunton after his dismissal from Sky News and that Staunton was dismissed because 'someone’s got to take the rap' for the Horizon scandal. The minister highlighted governance issues, including Staunton's failure to follow proper procedures in appointing a new senior independent director. She also refuted claims about stalling on compensation payments and provided evidence of letters emphasising the need for prompt action. Badenoch confirmed that over £160 million has been paid out across three compensation schemes, with an additional £150 million committed to support Post Office activities related to the scandal. The minister emphasised ongoing efforts to speed up compensation payments and quash wrongful convictions through legislation.

Other contributors (30)
  • Jonathan Reynolds Lab Co-op Stalybridge and Hyde

    Question

    Will the Secretary of State categorically state that at no point was it suggested that a delay would be of benefit to the Treasury?

    Minister reply

    The minister will not hesitate to defend herself against baseless attacks. She confirmed that there is no evidence of any instruction or inference to delay compensation payments for personal motives, and she emphasised the Government's commitment to delivering swift and fair redress to all affected postmasters.

  • Jonathan Reynolds Lab Co-op Stalybridge and Hyde

    Question

    Will there be a Cabinet Office investigation to ensure that no such instruction or inference was given at any point?

    Minister reply

    The minister emphasised the need for transparency and scrutiny, but she did not commit to a specific Cabinet Office investigation. She urged all parties to work towards clarity and truth regarding the allegations.

  • Jonathan Reynolds Lab Co-op Stalybridge and Hyde

    Question

    Will compensation payments be specifically itemised in the upcoming Budget?

    Minister reply

    The minister did not provide a direct answer but reiterated her commitment to transparency. She highlighted that over £160 million has already been paid out across three compensation schemes, and an additional £150 million was committed to support Post Office activities related to the scandal.

  • Jonathan Reynolds Lab/Co-op Stalybridge and Hyde

    Question

    Reynolds questioned whether the Post Office was instructed to delay compensation payments or if a delay would be beneficial for the Treasury. He also inquired about the £1 billion allocated for compensation, asking if it is already sitting in the Department's accounts. Reynolds further sought assurances that no obstruction has been placed on any other scandal-related payments and requested full publication of relevant correspondence.

    Minister reply

    The Secretary of State confirmed there was no instruction to delay payments and stated that such a decision would not make sense given no financial benefit exists. She also indicated that the compensation scheme under Henry Staunton’s watch has been completed with 100% payment made but declined full publication of correspondence due to parliamentary inquiry processes.

  • Question

    Scully, a former postal affairs Minister, questioned whether conversations about colluding to slow down the compensation did not happen and reiterated the need for more money to be paid out as soon as possible.

    Minister reply

    The Secretary of State confirmed that there were no such discussions. She stated that officials would have raised any issues with ministers had they occurred.

  • Question

    Fellows questioned whether Nick Read wrote a letter defending convictions and asked about the derisory offers made to sub-postmasters. She also inquired about Post Office’s investigators still being employed.

    Minister reply

    The Secretary of State denied that any pressure was put on Nick Read to write such a letter. She clarified that the main compensation scheme saw 84% acceptance rate among those offered and mentioned that the inquiry is looking into ongoing investigations.

  • Question

    Redwood asked for a review of UKGI’s governance, questioning how they managed Post Office's treatment of sub-postmasters and allowed significant financial losses.

    Minister reply

    The Secretary of State noted recent personnel changes and stated that until the day she dismissed Staunton, no difficulties with UKGI were communicated.

  • Kevan Jones Lab, North Durham

    Question

    The Secretary of State should produce all correspondence between UKGI and Post Office regarding the overturning of convictions. The statement is a cover-up and not open to scrutiny.

    Minister reply

    Rejects the assertion that there was any instruction from UKGI or others to write the letter about potential guilt, asserting that it was Nick Read's decision.

  • Conor Burns Con, Bournemouth West

    Question

    Reflecting on the comments of board members regarding former chairman Henry Staunton's performance and the subsequent dismissal.

    Minister reply

    Agrees with the sentiment that Staunton was not performing his duties well, justifying his removal.

  • Alistair Carmichael LD, Orkney and Shetland

    Question

    What further actions are being taken to ensure all sub-postmasters receive compensation for their losses due to the Horizon scandal?

    Minister reply

    Emphasises efforts made to expedite compensation payments through a formal process.

  • Duncan Baker Con, Worthing West

    Question

    Assures constituents that the compensation process is straightforward and encourages affected individuals to come forward.

    Minister reply

    Reassures people about the fairness of the compensation process and the commitment to ensure equitable treatment.

  • Diana R. Johnson Lab, Kingston upon Hull North and Cottingham

    Question

    Alleges a pattern of delayed action by the Government, similar to the handling of the infected blood scandal.

    Minister reply

    Rejects the allegation, highlighting pre-ITV drama actions taken for compensation.

  • Sarah Dines Constituency Unknown

    Question

    Asks what measures are being taken to improve practices at the Post Office board and address negative language towards postmasters.

    Minister reply

    Affirms efforts to find new leadership for the Post Office and notes concern over potential misinformation deterring candidates.

  • Andrew Bridgen Con, North West Leicestershire

    Question

    Cites evidence of delays in compensation payments from his own constituents' experience.

    Minister reply

    Acknowledges the delay but assures that a fixed sum award is available and emphasises efforts to expedite payments.

  • Richard Drax Con, South Dorset

    Question

    Requests assurance for compensation for an affected postmaster who was not prosecuted.

    Minister reply

    Commits to ensuring fair compensation and assures that cases can be reviewed through the postal affairs Minister.

  • Kate Osborne Lab Jarrow and Gateshead East

    Question

    Ministers have promised to swiftly exonerate and compensate victims, but why has Chris Head received only a 13% compensation offer? Can the Secretary of State confirm that sub-postmasters can trust the Government or the Post Office with their claims?

    Minister reply

    The legislation was passed in December without opposition support. While I do not have specific details on Kate Osborne's constituent, there is an appeals process and independent panel for those unsatisfied with offers.

  • Question

    Will the Secretary of State block any payouts to Henry Staunton given his failure in handling compensation?

    Minister reply

    There will be no payments to Henry Staunton.

  • Sammy Wilson DUP East Antrim

    Question

    Does the Secretary of State agree that addressing compensation issues quickly would answer for Henry Staunton's management failure?

    Minister reply

    The right hon. Gentleman is correct; we aim to ensure all receive fair compensation and are working towards this goal.

  • Lee Anderson Reform Ashfield

    Question

    Does the Secretary of State agree that Labour's current stance supports disgraced Post Office management despite wrongful imprisonments?

    Minister reply

    The hon. Friend is correct; multiple changes have been made to ensure proper leadership.

  • Chris Bryant Lab Rhondda and Ogmore

    Question

    How did the Secretary of State find out about Mr Staunton’s dismissal, given it was leaked to Sky News before she informed him?

    Minister reply

    The information was leaked from an unknown source within the Department or Post Office; I called Sky News and another outlet to prevent premature publication.

  • Debbie Abrahams Lab Oldham East and Saddleworth

    Question

    Is the Secretary of State willing to refer herself to the ethics adviser due to her statement on Mr Staunton’s dismissal?

    Minister reply

    The hon. Lady's assertion is ridiculous; I have officials, Post Office board members, and media outlets backing up my claims.

  • Clive Efford Lab Eltham and Chislehurst

    Question

    Is it acceptable for the Post Office to still be involved in investigations given its discredited process?

    Minister reply

    The inquiry’s work, individual case reviews, and proper process setup aim to give postmasters confidence.

  • Ben Lake PC Ceredigion Preseli

    Question

    Will the Government compensate former sub-postmasters not only for financial loss but also for personal harm caused by the scandal?

    Minister reply

    The goal is to ensure no one ends up worse off; additional compensation will be provided where possible.

  • Stella Creasy Lab Co-op Walthamstow

    Question

    Given past Government scandals, should independent bodies manage Government compensation schemes for public confidence?

    Minister reply

    The hon. Lady mentions decade-long scandals but overlooks that the Horizon scandal began under a Labour government; this Government is addressing it.

  • Barbara Keeley Lab Co-op Westminster North

    Question

    Raises the case of Mr Pennington, a sub-postmaster for 20 years who suffered financial distress due to errors in the Horizon system and has received only partial compensation. Asks when shortcomings will be reviewed so full compensation can be provided.

    Minister reply

    Acknowledges the issue and states that they are working with an advisory board to address it, ensuring proper compensation for affected sub-postmasters.

  • Florence Eshalomi Lab Co-op Vauxhall and Camberwell Green

    Question

    Questions if millions of pounds spent on compensating innocent sub-postmasters could have been better used to keep post offices open. Mentions the closure of Clapham Common post office.

    Minister reply

    States that efforts can be made both to compensate and keep post offices open.

  • Stephen Farry Alliance North Down

    Question

    Asks for confirmation that Northern Ireland will be included in legislation addressing the compensation of sub-postmasters with criminal convictions, despite current Government reluctance.

    Minister reply

    Confirms ongoing conversations with devolved Governments to address the issue, without a definitive answer yet.

  • Gerald Jones Lab Merthyr Tydfil and Aberdare

    Question

    Requests assurance that compensation will be paid before the general election, highlighting the distress of sub-postmasters awaiting payments.

    Minister reply

    Reiterates that delaying compensation until after the election is 'complete nonsense' and states a commitment to ensure quick payment.

  • Jim Shannon DUP Strangford

    Question

    Requests an update on the expected timescale for compensating sub-postmasters across the UK, noting that some have waited up to three years.

    Minister reply

    States a commitment to see everyone receive compensation by the end of this year.

Shadow Comment

Jonathan Reynolds

Jonathan Reynolds questioned whether the Government was instructed to delay compensation payments, leading to potential financial liability for the next Parliament. He called for transparency and a Cabinet Office investigation to ensure no such instruction or inference was given. Reynolds asked about the allocation of the £1 billion compensation fund and requested the publication of all relevant correspondence between the Department, Treasury, UK Government Investments, and the Post Office during this period. He also sought assurances regarding potential obstruction in other scandals like contaminated blood cases and demanded clarity on the promised legislation for exoneration.

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