Written Statements

Thursday 23rd March 2023 Written Statements

Thursday 23 March 2023

Post Office: Horizon Compensation

Thursday 23rd March 2023 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

The Post Office Horizon scandal, which began over 20 years ago, has had a devastating impact on the lives of many postmasters. Starting in the late 1990s, the Post Office began installing Horizon accounting software, but faults in the software led to shortfalls in branches’ accounts. The Post Office demanded sub-postmasters cover the shortfalls, and in many cases wrongfully prosecuted them for false accounting or theft.

The High Court group litigation order case against the Post Office brought by 555 postmasters exposed the scandal. The House will know that Sir Wyn Williams is now chairing a statutory inquiry to establish what went wrong and identify those who were responsible for what has happened.

The settlement of the High Court case ensured that postmasters who had not been party to it would receive proper compensation through what is now the historical shortfall scheme. However, group litigation order postmasters had much of their compensation taken up by the associated costs of funding their case and they were ineligible to access further compensation through the historical shortfall scheme. This meant that they received less than those in similar circumstances who were not party to the case. Government have agreed to run an additional compensation scheme to put this right and to allow group litigation order postmasters to access similar compensation as that available to their historical shortfall scheme peers in similar circumstances.

On 7 December the then Secretary of State announced the outline of the scheme. Since then, a great deal of work has been done to finalise the details, drawing on helpful input from the Justice for Subpostmasters Alliance and claimants’ legal representatives as well as utilising lessons learned from the historical shortfall scheme and compensation for those with Overturned Historical Convictions. On 10 February the Government published a tariff (agreed with claimants’ lawyers) for reasonable legal fees and a registration form.

In December we announced an independent advisory board on the scheme chaired by Professor Christopher Hodges and includes Lord Arbuthnot, Professor Richard Moorhead and the right hon. Member for North Durham (Mr Jones), all of whom have long been distinguished campaigners for postmasters. I am pleased to report that the advisory board has met three times, and reports of its meetings are on gov.uk.

We also said that we would follow an alternative dispute resolution model delivered by the Government. I can report today that we have appointed Dentons as our independent claims facilitators. Its role will be to promote fair and prompt resolutions of each case. We have also appointed Addleshaw Goddard to act as my Department’s external legal advisers on the scheme. They will take a collaborative approach, ensuring that there is no place for aggressive litigation in resolving claims.

I am delighted to tell the House that the scheme is open to receive claims from today. Details of how to submit claims can be found on gov.uk. Our legal powers to pay compensation run out in August 2024, but we certainly hope to make payments much faster than that. As the then Secretary of State told the House in December, we hope that most cases can be resolved before the end of 2023. I am placing documentation on the scheme in the Library of the House.

I am further pleased to report that the statutory instrument exempting group litigation order compensation from income tax, national insurance contributions and capital gains tax was laid before the Commons on 23 February and came into force on 16 March.

Historical Shortfall Scheme

I am also pleased to provide an update on Post Office’s progress in delivering compensation to those in the historical shortfall scheme. I am pleased to see the progress that Post Office has made in delivering compensation to post- masters. As of 21 March, 98% of eligible claimants have been issued offers of compensation, totalling £90.2m. Post Office is working to issue offers to remaining claimants as soon as possible.

Post Office has also received 231 late claims to date, with 15 offers issued so far.

I also recognise the concerns that have been raised in recent weeks around the tax position of claimants in the historical shortfall scheme. It has always been the intention of the scheme to return postmasters to the position they should have been in had they not been affected by the Horizon issues. The Government want to see fair compensation for all victims and my Department is working urgently to address this issue with the Post Office, HM Treasury and HMRC.

Overturned Historical Convictions

I am also pleased to provide an update on Post Office’s progress in delivering compensation to those with overturned historical convictions.

As of 20 March, Post Office had paid out over £17.6m in compensation. 79 of the 84 postmasters with overturned historical convictions had received interim payments, totalling over £10.2m. Post Office has reached full and final settlement with 4 postmasters. In order to deliver compensation as quickly as possible, Post Office is handling non-pecuniary and pecuniary claims separately.

A further 63 non-pecuniary claims had been received, of which all but three had received offers. 49 of these had been paid and settled, with one more claim paid, subject to settlement paperwork, which will bring the total to 50, once received.

In addition to the four full and final settlements, Post Office had made pecuniary settlement offers to four of the nine postmasters who had submitted a pecuniary claim.

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Family Law: Dispute Resolution and Mediation

Thursday 23rd March 2023 Written Statements

[The Lord Chancellor and Secretary of State for Justice (Dominic Raab)]

Today the Government are launching a consultation that will inform proposals to support more families, in appropriate cases, to agree their children and financial arrangements without court involvement.

Family courts are under unprecedented pressure. In recent years, more families than ever before are applying to the court to resolve their disputes about children and financial matters, and once at court their cases are taking longer to be resolved. We believe that many of these disputes can be successfully resolved outside of court, and that in supporting this we can spare families, and especially children, the anguish of protracted litigation. Resolving more disputes outside of court will also help enable the courts to focus available resource on the cases that need to be there, including where domestic abuse is evidenced or there are urgent issues, and ensure these are resolved swiftly. This will help us to deliver on the levelling-up agenda by ensuring we improve the experience of parents across the country, including the most deprived areas.

Key proposals in the consultation include:

Supporting parents to resolve their children and financial arrangements without court involvement:

We propose to strengthen access to resources and guidance for parents/carers and separating couples, and seek views on requiring parents/carers, in appropriate cases, to attend a co-parenting programme alongside mediation to help them better understand their family’s options.

Resolving private family law arrangements through mediation:

We propose to introduce a requirement, in appropriate cases, to make a reasonable attempt to mediate before applying to court. We are seeking views on how this could operate, and the circumstances that should make an individual or family exempt from the requirement. We propose that Government would fund the cost of this mediation for child arrangement cases and seek views on the funding of mediation for finance cases.

Accountability and costs in court proceedings:

We are also consulting on how costs orders could be used by the family courts to enforce requirements to mediate and discourage unnecessary prolonging of court proceedings.

The consultation also seeks views on the impact these proposals may have on the mediation sector, and the role of other forms of dispute resolution in family cases.

We want to hear from a range of people with experience of the private family law system, including families with experience of family courts, the organisations that work to support them, and the professionals who work within the system sector. We will be holding a number of stake- holder engagement events to ensure we receive detailed responses from a wide range of people and organisations.

The consultation is available at: https://consult.justice.gov.uk/

The consultation closes on 15 June 2023.

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Freeports: Wales

Thursday 23rd March 2023 Written Statements

[The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)]

Today the UK and Welsh Governments have jointly announced that there will be two new Freeports in Wales: Celtic Freeport and Anglesey Freeport.

This is an important moment for people across Wales. Freeport status will support the creation of high skilled jobs, drive growth and level up parts of our great country that have been previously overlooked. Each freeport, subject to business case, will be backed by up to £26 million in UK Government funding, and a range of tax incentives, including locally retained business rates to upgrade local infrastructure and stimulate regeneration. This is alongside a generous package of trade and innovation support for businesses locating there.

These two new freeports will unlock significant funding for Wales, helping to boost the economy and ensuring the benefits are felt from Anglesey to Port Talbot and Milford Haven. They will help to create tens of thousands of new jobs, boost business, and unleash potentially billions of pounds of investment in the local areas and beyond. The strong bids from the Celtic and Anglesey sites compellingly demonstrated how they will use freeport status to regenerate their local communities, establish hubs for global trade, and foster an innovative environment.

Freeports are at the vanguard of levelling up: driving growth and bringing opportunity and prosperity to the communities that surround them. The new freeports in Wales will build on the UK Government’s successful freeport programme in England, where all eight freeports are open for business, and in Scotland where two new green freeports have recently been announced.

The Government remain committed to ensuring that the whole of the UK can reap the benefits of our freeports programme. As well as freeports being set up in England, Scotland and Wales, we also continue discussions with stakeholders in Northern Ireland about how best to deliver the benefits associated with freeports there.

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Incomes and Living Conditions: 2021-22 Statistics

Thursday 23rd March 2023 Written Statements

[The Secretary of State for Work and Pensions (Mel Stride)]

The Department for Work and Pensions has today published its annual statistics on incomes and living standards covering 2021-22. This includes households below average income (HBAI), which contains estimates of household incomes and a range of low-income indicators for 2021-22, derived from the family resources survey. Further publications in today’s release are: income dynamics, pensioners’ income series, children in low income families, improving lives indicators, separated families statistics and the family resources survey. These publications cover the four statutory measures of child poverty required to be published by DWP under the Child Poverty Act 2010.

This Government have overseen significant falls in absolute poverty since 2009-10, largely driven by increases in labour market participation, with 3.8 million more people currently in employment and sustained improvements to the national living wage, which will increase to £10.42 per hour from April. There were 1.7 million fewer people in absolute low income, and the rate has fallen by 4% after housing costs in 2021-22 compared to 2009-10. This includes 400,000 fewer children, 1 million fewer working-age adults and 200,000 fewer pensioners.

Between 2020-21 and 2021-22, median income grew by £8 per week in real terms but there was a slight increase in the number of people in absolute low income. This was driven by increases in the numbers of pensioners in absolute low income, due to lower occupational pension income and higher inflation than in the previous year, impacting the value of the state pension. For working-age people, absolute poverty rates were unchanged, with strong earnings growth offsetting the impact of the withdrawal of the unprecedented levels of Government support to protect incomes and jobs during the pandemic.

Building on the food insecurity data which this Government first published in 2019-20, we are publishing official estimates of food bank use for the first time. In 2021-22, 3%—0.8 million households—had used a food bank on at least one occasion in the past year. HBAI recorded that less than 0.1 million pensioner households used a food bank in the past year. In 2021-22 7% of individuals, or 4.7 million people, were living in households classed as food insecure, down from 8% in 2019-20.

These statistics are for 2021-22 so do not reflect the impact of the cost of living challenges caused by Putin’s illegal war and global supply chain pressures. We recognised the pressures households faced as a result and acted, providing substantial cost of living support in 2022-23 including cost of living payments worth up to £650 for those on means-tested benefits, £150 for eligible disabled people and £300 for pensioner households. At autumn statement 2022, the Government announced benefits and pensions uprating of 10.1%, the largest ever cash increase to the national living wage and generous cost of living support for 2023-24. This included additional cost of living payments for more than 8 million households on means-tested benefits, 6 million people on disability benefits, and 8 million pensioner households across the UK. It also included an additional £1 billion, including Barnett impact, to enable the extension of the household support fund in England, to help households with the cost of essentials. As announced at the spring budget, to further support households with the cost of living, the Government are maintaining the energy price guarantee at £2,500 for a further three months, from April 2023.

This Government are committed to obtaining the best evidence to ensure policies are targeted at helping the most vulnerable in our society. Last year a suite of further material deprivation measures were published. To further improve the evidence base, the Government are resuming work to develop experimental statistics based on the social metrics commission's innovative work on poverty measurement.

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