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Post Office Horizon IT Scandal: Compensation
18 July 2023
Lead MP
Kevin Hollinrake
Debate Type
Ministerial Statement
Tags
Business & Trade
Other Contributors: 17
At a Glance
Kevin Hollinrake raised concerns about post office horizon it scandal: compensation in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The Minister thanked the right hon. Member for his tireless campaigning on compensation for Post Office workers affected by the Horizon scanning system and acknowledged Sir Wyn Williams's interim report, emphasising the government’s commitment to full and fair compensation. He noted that while some lawyers alleged impediments in providing such compensation, Sir Wyn found no legal reasons against delivering it as committed. The Minister also addressed the advisory board's role in suggesting an independent appeals process, which is under consideration by the Government. Additionally, he discussed extending the deadline for the group litigation order compensation scheme if necessary, reiterating the government’s determination to deliver compensation within a two-year window closing in August next year due to spending limitations under the Appropriation Act.
Kevan Jones
Lab
Question
The shadow Minister inquired about when Sir Wyn's recommendations would be addressed, especially on extending the advisory board’s remit. He also criticised the Post Office for its obstructive role and questioned why Nick Read is accepting bonuses given his management’s involvement in the inquiry.
Minister reply
The Minister acknowledged that there are three compensation schemes which might be described as suboptimal but reiterated the commitment to delivering fair compensation quickly. The Government is considering an appeal mechanism carefully, and any requests have been addressed promptly. He noted unacceptable delays in document disclosure for which the Post Office has apologised, emphasising the need for the Post Office to improve its performance.
Bob Blackman
Con
Harrow East
Question
The MP asked the Minister to ensure that the Post Office admits responsibility and those responsible for covering up the issue are held accountable rather than leaving a stain on the reputations of innocent postmasters.
Minister reply
The Minister acknowledged the unacceptable situation and highlighted his Department's efforts to accelerate compensation. He agreed with the need for accountability, emphasising due process and the importance of Sir Wyn Williams’s inquiry identifying those responsible.
Chi Onwurah
Lab
Newcastle upon Tyne Central
Question
The MP praised Members for their work on bringing justice in the Horizon scandal, thanked Sir Wyn Williams's advisory board and questioned the compensation schemes. She called for individual case monitoring, a final figure of claims made to the historical shortfall scheme, expected costs, and addressed Post Office management issues, including bonuses given to the leadership team.
Minister reply
The Minister thanked campaigners and individuals involved in addressing the issue. He committed to looking at Sir Wyn’s recommendations regarding fair compensation for individual cases. He also mentioned £26 million provided for tax treatments of settlements, with offers totalling over £100 million and £72.8 million accepted so far. The government is conducting a governance review due by the end of the month.
Karl McCartney
Con
Lincoln
Question
The MP questioned the two-year timeframe for compensation claims, calling it 'timely,' and asked about holding senior management to account.
Minister reply
The Minister defended the pace of delivery and noted that settling compensation claims is complicated. He committed to creative ways to expedite payments, with interim payments of £20 million on both outstanding schemes already made.
Marion Fellows
SNP
West Dunbartonshire
Question
The MP welcomed Sir Wyn Williams's recommendations for full and fair compensation but questioned the timeframe for implementation. She also addressed ongoing issues with Post Office culture under its CEO.
Minister reply
The Minister thanked the hon. Member and agreed that the pace of delivery needed improvement, promising to review the situation constantly and accelerate compensation efforts.
James Sunderland
Lab
Sunderland South
Question
The MP suggested bringing criminal charges against the Post Office and its IT advisers as a way to speed up justice.
Minister reply
The Minister agreed that pulling out all stops is crucial, but pointed out that the Government does not bring forward criminal charges; enforcement agencies would take action if they find evidence of criminal actions.
Darren Jones
Lab
Bristol North West
Question
The MP called for full compensation for victims and suggested removing the Post Office from the compensation process to ensure independent handling.
Minister reply
The Minister acknowledged the complexity of assessing losses and referred to Sir Wyn Williams's advice on continuing with current frameworks. He emphasised the need to expedite the three existing schemes.
West Worcestershire
Question
The MP, a former post office counter clerk himself, asked for assurance that lessons have been learned from the Horizon scandal.
Minister reply
The Minister assured that lessons are being learned to heed warnings more quickly and prevent similar issues in future. However, ultimate deterrent actions will only be determined after receiving final results of the inquiry.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Question
The significance of Sir Wyn bringing forward an interim report should not be underestimated. The chief executive of the Post Office sees dealing with historical matters as a major barrier to changing its culture, whether it is a reason or excuse remains to be seen but this barrier must be removed.
Minister reply
I agree that we need to address these barriers and we are determined to play our part in removing them. I have read the report and appreciate its recommendations; we will thoroughly study them before proceeding.
Question
Many sub-postmasters suffered due to this issue, thanking Members for their efforts in addressing it, asks the Minister to accelerate compensation payments and follow through on consequences for the Post Office leadership.
Minister reply
We agree with accelerating compensation. Significant progress has been made on HSS scheme but we need to resolve other schemes' issues quickly. We have paid around £40 million in interim payments, working towards full compensation.
Gareth Thomas
Lab Co-op
Harrow West
Question
The report mentions late applications for compensation ranging from 230 to 250 and potentially more. Can the Minister confirm these will be seriously considered, and are accurate or higher?
Minister reply
We are looking at this recommendation carefully and intend that everyone affected receives full and fair compensation.
Question
Since 2010, I have been involved in the Horizon scandal investigation. By 2014, we all knew sub-postmasters were wrongly convicted yet they still await full justice and compensation.
Minister reply
We agree with getting wider compensation out as priority; the inquiry will establish who knew what when to hold accountable.
Tonia Antoniazzi
Lab
Gower
Question
Fujitsu continues to win Government contracts despite its involvement in the scandal, worth £42 million recently extended Post Office contract. Why?
Minister reply
Those decisions are not mine to make; due process must follow before determining guilt for companies or individuals.
Tan Dhesi
Lab
Slough
Question
Decent postmasters have had their lives ruined, put in prison and wait years for justice. The public inquiry exposed racism at the Post Office’s Fujitsu-run IT help desk; what are Government doing about future contracts?
Minister reply
The presumption of innocence is followed until proven otherwise. The Williams inquiry looks at Fujitsu's role among others.
Jim Shannon
DUP
Strangford
Question
Postmasters have lost their shirts and now face more defaults on payments and loans due to delayed compensation; can something be done to ensure reparations reach those needing them most?
Minister reply
Interim payments are available, but we agree that getting full compensation out quickly is crucial for recovery.
Question
Some compensated individuals find a significant portion of their money going to creditors, needing to make additional claims; what talks have there been about ensuring payments cover all expenses?
Minister reply
We are looking at specific cases. Sir Wyn agrees insolvency practitioners should not take shares of group litigation order compensation.
Shadow Comment
Kevan Jones
Shadow Comment
The shadow Minister thanked the Minister for his positive approach and agreed with many of Sir Wyn's recommendations but questioned the timeline for addressing them, particularly on extending the advisory board's remit. He criticised the Post Office’s obstructive role, pointing out that it stalled the inquiry due to failure in disclosing documents and asked when this issue would be addressed or if action against Nick Read and his management is necessary. Kevan Jones highlighted the need for justice and quick compensation for victims who have faced significant hardship.
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