Commons Sense

House of Commons · Westminster Hall

Post Office Historical Shortfall Scheme

14 December 2021 · 3 other contributors · 4,644 words

Opened by Alistair Carmichael Lib Dem Orkney and Shetland

Responding minister: George Freeman

EmploymentStandards & Ethics

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

Read the full transcript on Parliament.uk

At a glance

Alistair Carmichael raised concerns about post office historical shortfall scheme in Westminster Hall. A government minister responded.

Key points

  • MP is concerned about the culture within the Post Office, citing the Horizon scandal and low trust among postmasters.
  • MP criticizes the administration of the historical shortfall scheme for using public money to defend the Post Office.
  • MP requests the government to ensure a demonstrable change in culture and clarity on why Declan Salter's contract was not renewed.

Key requests to Government

The MP asks the government to ensure that there has been a demonstrable change in culture within the Post Office. He also seeks clarity on why the contract of Declan Salter, who was responsible for the historical shortfall scheme, was not renewed by the Post Office board.

How the debate unfolded

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

Opened the debate

Alistair Carmichael Lib Dem Orkney and Shetland

The MP is concerned about the current culture within the Post Office, citing incidents such as the Horizon scandal. He mentions that only 29% of postmasters believe they are being listened to by the Post Office. The administration of the historical shortfall scheme has been criticized for using public money to defend the indefensible actions of the Post Office. Elena Kimmett's case illustrates how sub-postmistresses suffered both financially and emotionally due to the Horizon scandal, leading to her resignation and early death.

Other contributors (3)
  • Jim Shannon DUP Strangford

    The system failure led to severe mental and physical health issues for those affected, including premature death or financial ruin.

  • Kevan Jones Lab North Durham

    Questions the Post Office's spending of £100 million defending the indefensible, given that the Government is its sole shareholder. Mr Jones highlighted the case of Tom Brown, a constituent accused of stealing £86,000 by the Post Office. He criticised the scheme for excluding those who took part in group litigation and called for the scheme to be scrapped.

  • Kevin Hollinrake Con Thirsk and Malton

    The scheme should be redone impartially, mirroring the failed Lloyds bank compensation scheme which caused distress to victims. Mr Hollinrake pointed out that the compensation amounts given, such as £28,000 to Lee Castleton who lost more than £400,000, were unfair.

Government Response

George Freeman

I am pleased to announce full funding for the Historical Shortfall Scheme to compensate sub-postmasters who have not yet been compensated. The Government acknowledges the institutional failure that led to suffering among sub-postmasters and supports cultural change at the Post Office. The scheme received over 2,300 eligible applications, highlighting the need for fair compensation. The cost of the scheme exceeded what the Post Office could afford, prompting government intervention as its shareholder. Compensation will be processed within months with all claims settled by the spring.

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