Post Office (Horizon System) Offences Bill

(Limited Text - Ministerial Extracts only)

2nd reading
Monday 13th May 2024 Lords Chamber

Moved by

[Lord Offord of Garvel]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Department for Business and Trade (Lord Offord of Garvel) (Con)]

My Lords, I am pleased to present the Post Office (Horizon System) Offences Bill for Second Reading today. Noble Lords will have followed the passage of this historic Bill through the other place and will be well aware of its significance and the cross-party support it has received. This legislation will address one of the greatest miscarriages of justice in our nation’s history. It will quash the convictions of those affected by the Post Office Horizon scandal in England and Wales, and, following government amendment in the other place, Northern Ireland. This will ensure that postmasters are not disadvantaged by the unique challenges of expediting legislation faced by the Northern Ireland Assembly. The Government will continue working closely with the Scottish Government to support their approach to addressing the scandal, ensuring that every postmaster who has been affected, irrespective of where they are in the United Kingdom, receives the justice they deserve. The financial redress scheme will be open to postmasters throughout the UK, regardless of where or how their conviction was quashed.

This Bill will clear the names of postmasters whose lives were destroyed because of the Horizon scandal—those who received wrongful convictions or cautions for offences, including false accounting, theft and fraud, because of the Post Office’s faulty IT system. The legislation cannot undo the damage caused by the Horizon scandal. However, it is a crucial step in restoring the good names of those affected and ensuring they can access fair and full redress.

This new legislation will quash all convictions which meet the following clear and objective conditions: that the case was prosecuted by the Post Office, the Crown Prosecution Service or Northern Ireland’s prosecuting authorities; that the alleged offence was committed between certain dates in 1996 and 2018; that the postmaster was convicted of theft, false accounting or similar offences listed in the Bill; that the convicted individual was working in a Post Office which was using the Horizon system; and that the alleged offence was carried out in connection with running the business of that Post Office or with the person’s work in that Post Office.

The Bill will not quash convictions that have already been considered by the Court of Appeal, as defined in the Bill. The safety of those convictions has been considered by judges in the senior appellate court. The Government’s view is that, given the constitutional sensitivities, extreme caution must be exercised over whether Parliament should interfere with these decisions. Convictions will be quashed automatically when the Bill receives Royal Assent, removing the need for people to apply to have their conviction overturned. This will ensure that those affected receive justice as soon as possible.

The Bill includes a duty on the Secretary of State—or in Northern Ireland, the Department of Justice—to take all reasonable steps to identify convictions that have been quashed. It also creates a duty to notify the original convicting court, so that records can be updated. Other records, such as police records, will be amended in response. Similarly, the Bill makes provision for records of cautions relating to this scandal to be deleted.

I am well aware that the approach we are taking in the Bill is novel. In the Bill, we are using legislation to fulfil a function that in normal circumstances is rightly reserved to the independent judiciary. I am equally aware that these are not normal circumstances. Given the number of postmasters involved, the passage of time since the original conviction, the loss of evidence over that time, and the loss of trust in the system—meaning that many affected simply will not come forward to appeal—it is right that the state provides an exceptional response. Postmasters have suffered for too long, and we must end their fight for justice as swiftly as possible.

However, it is vital to make two points clear to your Lordships’ House. First, the Government’s position is that it will be Parliament and not the Government that is overturning the convictions: there will be no intrusion by the Executive into the proper role of the judiciary. Secondly, we have been clear throughout the passage of the Bill that this legislation does not set any kind of precedent for the future. It is also important to be unambiguous that the passage of the Bill is in no way a reflection on the courts or the judiciary, which have dealt swiftly with the cases before them.

Upon Royal Assent, this legislation will quash all convictions in its scope with immediate effect, as a matter of law. This means that victims will not have to take any action to receive exoneration. It also means that this unprecedented provision expires once it has done its job on the day of Royal Assent. This supports the Government’s aim that the Bill should not be seen as a precedent for Parliament’s acting outside its usual constitutional role. The Government will take all reasonable steps to notify the relevant individuals and direct them to the route for applying for financial redress. Further details of this process will be set out in due course. Importantly, there will also be a process for anyone to come forward where they believe their convictions meet the criteria. If they meet the criteria in the Bill, their records will be amended to reflect the quashed conviction in the same way.

Turning to financial redress, this new legislation will be followed by a rapid route to financial redress, on a similar basis to the existing redress arrangements for those with overturned convictions currently administered by the Post Office. However, the Government, rather than the Post Office, will be responsible for the delivery of the scheme for those whose convictions are overturned by the Bill. Final decisions will be made by independent panels or individuals, where they cannot be agreed with the postmaster.

We do not need provisions in the Bill to deliver that scheme; the legal basis on which redress is made is already in place. We place great importance on ensuring that this redress is delivered promptly. Information about redress will be provided to each individual alongside the notification that their conviction has been overturned. Each exonerated postmaster will have the choice between accepting a fixed offer of £600,000, which will be paid rapidly, or having their claim individually assessed. This new scheme will join the three schemes already being run by the Post Office and my department. In total, over £200 million has already been paid to over 2,800 claimants. Some 72% of claims received have been settled, but the Government continue to strive to accelerate matters. Ministers are advised on these issues by the Horizon Compensation Advisory Board. We are very grateful to the board’s members, notably the noble Lord, Lord Arbuthnot, in his usual place, who has done so much to drive the resolution of this scandal.

In summing up, this Bill amounts to an exceptional response to a scandal which is wholly exceptional in nature. It is a scandal that has shaken the nation’s faith in the core principles of fairness and equity that underpin our legal system. We recognise the constitutional sensitivity and unprecedented nature of this legislation, but we believe that it is essential for us to rise to the scale of the challenge. The hundreds of postmasters caught up in this scandal deserve nothing less. Of course, no amount of legislation can fully restore what the Post Office so cruelly took from them, but I hope this Bill at least begins to offer the closure and justice for which postmasters have so bravely campaigned over so many years. I hope that it affords them the ability to rebuild their lives. I beg to move.

--- Later in debate ---

[Lord Offord of Garvel (Con)]

My Lords, this has been a thoughtful and considered debate, and I am grateful for the broad and insightful contributions from noble Lords across the House. I was particularly grateful for the opening contributions of the noble and learned Lords, Lord Falconer of Thoroton and Lord Burnett of Maldon, one speaking as a former Lord Chancellor and the other as a former Lord Chief Justice. They were able to frame so eloquently the two potential solutions available to your Lordships’ House to right these wrongs.

The Government acknowledge that the quashing of convictions by an Act of Parliament is an exceptional step, but we believe it is required to respond to a factually exceptional situation. We know that many postmasters are simply too traumatised or disenchanted with authority to consider appealing, no matter how easy we make it. They want to see no further lawyer or court; they are scunnered. In many cases, evidence simply no longer exists anyway in order to help their cases. The scale and circumstances of prosecutorial and investigatory misconduct over such an extended period are unique in our history. The scale of this miscarriage of justice is an affront to the rule of law itself. Therefore, it is right that the Government intervene to deliver justice to hundreds of postmasters, who deserve this without having to make a huge amount of effort themselves. We need to do this while respecting the delicate constitutional balance so eloquently put forward by a number of noble and learned Lords this afternoon.

I will start by covering the legislative approach we are taking. I understand the concerns of the noble and learned Lords, Lord Burnett of Maldon and Lord Etherton, and the right relevant Prelate the Bishop of Manchester. We all share their respect for an independent judiciary. I have been clear that the Bill is not a comment on the outstanding work of the courts and judiciary, which have dealt swiftly with the cases before them. I am cognisant of the assurances given by the judiciary that it would move fast in this case.

However, I respectfully disagree with how the noble and learned Lord, Lord Etherton, characterised the legislation. We agree that the separation of powers is a vital part of our justice system, but public confidence and faith in the system are also vital. This is a miscarriage of justice on a scale never seen before, and the circumstances are exceptional. We have carefully considered other approaches, including court processes. However, ultimately, no reform short of this legislative approach provides the swift remedy needed as a result of these unprecedented circumstances.

Many postmasters would not see justice through the courts, because much of the evidence about individual cases has now been destroyed or because many postmasters no longer trust the criminal justice system and therefore will not come forward. It is therefore right that the Government take action to put this right.

The noble and learned Lord, Lord Burnett of Maldon, raised the possibility of legislating to give Ministers powers to refer cases to the Court of Appeal and assume that all convictions were wrongful unless new evidence was presented. Reconsideration of cases by the Court of Appeal would take time even if court processes were expedited. Further, a presumption that all relevant convictions are unsafe is rebuttable, and we cannot be sure that every case would pass through the courts swiftly and without adjournments. This approach would not avoid interfering with the independence of the judiciary; it would raise other constitutional concerns, as it would make an assumption about the outcome of the cases being referred, meaning that the Government were still interfering in the judicial process of the senior appellate court.

The noble and learned Lord, Lord Burnett, also spoke about comments made by the Lady Chief Justice. She said that in over 90% of cases the defendants pleaded guilty. We are not able to verify this figure, which in itself tells noble Lords quite a lot about this case. As the noble and learned Lord, Lord Falconer, rightly raised, we are also aware, from Sir Wyn Williams’ inquiry, of evidence suggesting that individuals pleaded guilty because they were told to or felt under pressure.

I turn to the specific issue of the Court of Appeal cases, which was highlighted at the beginning of the debate by the noble Lord, Lord Arbuthnot of Edrom, and then raised by the noble and learned Lord, Lord Falconer, and the noble Lord, Lord Holmes of Richmond. This is a difficult issue; I thank noble Lords for raising it.

Let us start by reminding your Lordships’ House of the unprecedented and constitutionally sensitive nature of this legislation. That is why it is vital that we legislate in a way which respects the separation of powers and the independence of the judiciary as far as possible. Including convictions that have been upheld by the Court of Appeal would override decisions taken by the senior judiciary. Of the 13 such cases we know of, seven were upheld by the Court of Appeal and six were refused leave to appeal. They are excluded from the Bill because the Government believe we should tread very carefully where judges in the senior appellate court have considered a case on its merits. We recognise that this approach may leave a small number of individuals concerned about the way forward for their cases. In cases where the Court of Appeal has upheld a conviction, the usual routes of appeal remain available to them.

I turn to the matter of the DWP cases—

[Baroness Brinton (LD)]

I am sure that is right for the seven who could appeal, but there were six who were not given leave to appeal. What would their route be to getting justice?

[Lord Offord of Garvel (Con)]

My understanding is that six were given no right to appeal because it was considered they did not have the evidence to do so; in effect, they are considered with the 13 whose convictions were not overturned. Therefore, they are included within the same category.

[Lord Falconer of Thoroton (Lab)]

I have been focusing on the recent trips to the Court of Appeal. I do not know whether there were trips to the Court of Appeal in the immediate aftermath of the convictions that started in 1996. Are we talking only about recent trips to the Court of Appeal or are we including trips that might have been a decade ago, before the nature of the scandal was known?

--- Later in debate ---

[Lord Offord of Garvel (Con)]

My Lords, I will cross-check the record, but my understanding is that these 13 cases are recent and came to the Court of Appeal after the Hamilton judgment, so the courts were aware of the background in those cases.

The noble Lords, Lord Arbuthnot of Edrom, Lord Sikka and Lord McNicol, and the noble and learned Lord, Lord Falconer of Thoroton, questioned why this legislation does not include the cases prosecuted by the DWP, which we believe amount to 62. The noble Lord, Lord Sikka, asked whether any DWP-prosecuted cases were quashed; we are not aware of any convictions being quashed by the Court of Appeal. These cases, unlike many of the cases prosecuted by the Post Office or the CPS, involved wider corroborating evidence beyond that supplied by the faulty Horizon system, so are unlikely to be unsafe in the same way. The existing and established appeal processes remain available in relation to these cases.

I agree wholeheartedly with the noble Lords, Lord Sikka and Lord Holmes of Richmond, about the importance of delivering financial redress as quickly as possible. I am pleased to say that, as of 30 April, we have paid out more than £200 million in redress to over 2,800 claimants. Under the main Horizon shortfall scheme, 88% of claims have now been received and 72% paid out. We are going as fast as we can; we are reliant on the appeals coming forward and claimants making claims. We expect that, at the moment, many of those with overturned convictions are waiting for this Bill to pass and we expect their claims to come in more quickly following this legislation.

Financial redress is clearly not in scope of this legislation, but I hope it reassures noble Lords to know that, once the necessary legislation has been passed, we will provide a route to full, fair and rapid financial redress for quashed convictions. We will include information about redress in the notifications which we send to postmasters when their convictions are overturned. Our aim is that the redress process will follow seamlessly from the process of overturning convictions.

[Lord Sikka (Lab)]

Before we leave the issue of DWP convictions, can the Minister confirm or otherwise—he might wish to write—whether any DWP investigator, official or witness has at any point retracted evidence given under oath to any Crown Court?

[Lord Offord of Garvel (Con)]

I will need to write to the noble Lord on that point.

As my colleague in the other place, Minister Hollinrake, said, we want to minimise any pause between the Bill coming into effect and redress payments being made.

To be clear, the GLO compensation scheme is independent of the Post Office. As requested by postmasters in our consultation, it is run by the Department for Business and Trade. Claims which are not agreed will be assessed by a panel whose members are independent of government and the Post Office. Any errors in decisions from the independent panel can be taken to the reviewer of the GLO scheme, Sir Ross Cranston. The Government are funding postmasters with overturned convictions to receive independent legal advice on their claims and offers. Retired High Court judge Sir Gary Hickinbottom has been put in place to chair an independent panel to resolve disputes on pecuniary losses. Horizon shortfall scheme claims are assessed by an independent panel of experts who provide a recommendation to the Post Office. To date, there have not been any instances where the Post Office has offered a lower amount than the recommendation of the panel.

The noble Lord, Lord Sikka, and the noble Baroness, Lady Jones of Moulsecoomb, raised the accountability of Post Office executives. We await the outcome of the Wyn inquiry, which will provide clarity on this issue. Finding people guilty without looking at all the evidence is how we got into this mess in the first place. Postmasters were prosecuted without proper disclosure; we must not make the same mistake again in holding people accountable for this scandal, however tempting it might be. The public can be very reassured by the detailed investigation being conducted in public by Sir Wyn Williams. Each week reveals more shocking news, and I have no doubt that justice will be served by the inquiry.

A number of noble Lords have quite rightly mentioned Fujitsu. The noble Baroness, Lady Jones of Moulsecoomb, has raised Fujitsu and its role in the scandal a number of times in this Chamber. It is right that the company has voluntarily decided not to bid for future government contracts for the time being while the inquiry is ongoing, unless the Government ask it to. The Government also welcome Fujitsu acknowledging that it has a moral obligation to contribute to compensation. The Government are in active conversations with the company at a very senior level about this.

I thank the noble Lord, Lord Browne of Ladyton, who has consistently raised the concept of the interrogation of computer evidence used in prosecutions. The Government are committed to preventing any further miscarriages of justice, like the Horizon scandal. There has been a proliferation of digital material in modern criminal cases, particularly in cases such as fraud and serious sexual offending but also in lower-level high-volume offences such as drink-driving. For this reason, any hasty changes to the legal position risk serious and significant unintended consequences for the running of the criminal justice system. However, the Lord Chancellor is fully considering all options available, and more consideration can be given to this matter and reported to the House through this process.

I thank the noble Lords, Lord Browne of Ladyton and Lord Holmes of Richmond, and the noble and learned Lord, Lord Falconer of Thoroton, for their comments on the territorial extent of the Bill. We all wish to see justice being applied in all four parts of the United Kingdom. The other place has agreed to extend the Bill to Northern Ireland, in recognition of the unique challenges faced by the Northern Ireland Executive in bringing forward their own in a similar timeframe to the rest of the UK. Their legislative process is lengthy and difficult to expedite, and the legislation would have to compete with the many other priorities accumulated during the two-year suspension of the Assembly. The Government are also cognisant of the extent of cross-community support for the extension of the Bill to Northern Ireland.

The Government’s position on Scotland remains unchanged. Scotland does not face the same challenges in bringing forward legislation within its Parliament as Northern Ireland does. It is for the Scottish Government to bring forward their own proposals to address prosecutions, and for those to be scrutinised by the Scottish Parliament in line with the devolution settlement. I hope that reassures the noble and learned Lord, Lord Falconer of Thoroton, and the noble Lord, Lord Holmes of Richmond, that my officials have been supporting their counterparts in the Scottish Government to bring forward their own legislative proposals. I understand that they intend to do this shortly.

I turn to another of the very uncomfortable situations raised by the Horizon scandal, mentioned by the noble Lord, Lord Sahota, who spoke so powerfully about the racism experienced by victims of the Horizon scandal. I agree that this issue is very important. The Sir Wyn Williams inquiry has touched on this already in its oral evidence sessions. The Government are keen to hear anything that the inquiry concludes on this matter, including any recommendations for the future.

On the issue raised by the noble Baroness, Lady Brinton, in relation to Capture, the precursor computer system to Horizon, at this point we have not found sufficient evidence to conclude that Capture led to people being wrongly convicted. Capture was very different from Horizon: it was a stand-alone spreadsheet, not an integrated accounting system. There were bugs in it, but they were admitted to by the Post Office. It was not an interactive system that could be manipulated by a third-party source, as was the case with Horizon. It helped postmasters balance their accounts, rather than operating as a black box, reporting accounts across the network to Post Office headquarters. Given the limited information that we currently have about Capture and resulting convictions, there is not yet any evidence that any miscarriages of justice took place. It is therefore the Government’s position not to seek to overturn these convictions or to consider Capture cases within the Horizon system inquiry.

However, I would like to reassure the noble Baroness that we are looking into what can be done on Capture. As soon as the Government found out about issues with the Capture system, we asked the Post Office to investigate. We are in the process of appointing an independent forensic investigator to look into the Capture software and how the Post Office addressed concerns about it. Once the investigator has reported, we will return to the House to set out our plans, but we do not consider that this should hold up the more important matter before us, which is overturning the Horizon convictions.

On the post-legislative process, I thank the noble Lord, Lord Sandhurst, for his very useful contribution and his two points about creating a website for those who have been exonerated by this Bill. He has indicated that we do not have full contact details for all our claimants in this case. For reasons of confidentiality, it would not be right to create a public web page that would list the names of those exonerated. However, all those that are in scope will be written to on Royal Assent, and those that we have been able to identify in scope but have not been contacted can get in touch with the Government to have their cases looked into. We will ensure that GOV.UK is utilised to promote access to exoneration and financial redress. All guidance on the exoneration process and the financial redress scheme will be on GOV.UK.

I am grateful for the cross-party support shown towards this legislation and the valuable support of the Opposition Front Benches, represented by the noble Lord, Lord McNicol, and the noble Baroness, Lady Brinton.

In closing, the Government recognise the profound impacts that the Horizon scandal had on those who were falsely accused. I listened to the noble Lord, Lord McNicol, refer to individual cases, and we all know of examples in our local area where lives have been ruined, and each one is a very sad story on its own. Therefore, we legislate with that at the forefront of our minds, and the objective of this Bill is to exonerate those who were so unjustly convicted of crimes that they did not commit and provide fair redress as swiftly as possible. I beg to move.

Bill read a second time and committed to a Committee of the Whole House.