Kroll Investigation into Capture Software: Government Response

Tuesday 17th December 2024 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)]

Network subsidy uplift and postmaster remuneration

The Government are committed to delivering the manifesto commitment to strengthen the post office network. To do this, we intend to take steps that will improve the culture, structure, and organisation of the company. I have announced that the Government will publish a Green Paper in the first half of next year to seek the public's views, insights and experiences to help shape the future of the Post Office. In the meantime, it is important to continue to support the post office network and the important services it provides across the country. I can therefore announce that the Government are providing a further £37.5 million of network subsidy this financial year.

Postmasters have raised concerns with me that their income has not kept up with inflation over the past decade. The Government therefore welcome that the Post Office is going to make a one-off payment to postmasters to increase their remuneration.

Government response to independent investigation into Capture software

I am today publishing the Government response to the independent report conducted by forensic accountant Kroll Associates, into the Post Office Capture software. This can be found at https://www.gov.uk/government/publications/independent-investigation-into-capture-government-response. I have also placed copies in the Libraries of both Houses.

Earlier this year, concerns were raised by parliamentarians and postmasters about the Capture software which was rolled out by the Post Office to some branches in the early 1990s and predated the Horizon IT system. The concerns were that the Capture software had bugs which may have caused shortfalls, leaving postmasters to pay the Post Office back, and that some postmasters may have been prosecuted as a consequence.

In responding to these concerns, the Government committed to publishing the conclusions of the Kroll report as quickly as possible after the investigation concluded. The report was published on 30 September 2024, and an addendum to the report containing additional evidence was published on 18 October 2024. The report concluded there was a reasonable likelihood that Capture could have created shortfalls for postmasters. The Government accept those findings.

This has come to light thanks to the hard work of postmasters, campaigners and parliamentarians and the Government are committed to moving swiftly on proposals for delivering redress.

After closely considering the findings and other evidence presented to the Government, including testimony from postmasters, the Government have concluded that postmasters who were adversely impacted by Capture should be offered redress.

The next step in this process will be to decide how and what form of redress should be offered in the context of Capture, which is distinct from Horizon due to the passage of time and the significant lack of contemporaneous records and evidence.

The Government will develop their proposals, engaging with postmasters and other key stakeholders over the coming months to determine the scope of the financial redress and the eligibility criteria. Financial redress will be offered to postmasters who do not have a criminal conviction or where a court has overturned their conviction.

The Kroll report does not make conclusions on whether Capture led to unsafe convictions. Therefore, the Government are continuing to work with the Criminal Cases Review Commission, the Scottish Criminal Cases Review Commission and the Post Office on their ongoing investigations into the use of Capture in prosecutions.

I would like to thank postmasters that have come forward so far, and for those who have shared their initial suggestions for redress.

Lastly, I urge all postmasters who may have used Capture and may have experienced shortfalls related to Capture to come forward to the Government to make themselves known. Equally, we welcome family members of any postmasters who have sadly passed away, who believe their relative may have been affected, to come forward.

[HCWS318]