Post Office (Horizon System) Offences Bill

Debate between Lord Beamish and Kevin Hollinrake

Consideration of Lords amendments
Thursday 23rd May 2024 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

Thank you for your kind words, Mr Deputy Speaker. I think this will be the last time that I speak in this Chamber, and I cannot think of a more fitting debate in which to do so, because it is the culmination of many years of fighting. I played a small part in getting justice for the sub-postmasters; much of it was down to Alan Bates and the families who went through this complete nightmare. Hopefully, they will get justice and truth when the inquiry reports next year.

This Bill was always going to be important because of the individuals involved. Unless you actually sat with many of these victims, they would not have come forward to clear the stain on their reputations or to gain access to compensation. It has been a long fight, and my partner in crime was Lord Arbuthnot. Someone asked me how we had got together on this. If people look back, they will see that we both served on the Defence Committee—he was the Chair at the time. He has been a very effective advocate and I pay huge tribute to him.

There have been many Members from all parts of the House—some are no longer here—who made a contribution over the years, and I think that their support needs to be recognised as well. Turning to the Ministers involved, I would like to mention the hon. Member for Sutton and Cheam (Paul Scully), who showed such tenacity in his determination to get justice. He was followed very ably by the hon. Member for Thirsk and Malton (Kevin Hollinrake). I have called him a poacher turned gamekeeper, but he is a very effective one. He has driven this case forward, not in a belligerent way, but with patience and determination to ensure that people who have been wronged get justice. That is something that we should all think about.

People can turn round and say, “No, you are wrong, the system cannot be questioned.” And there are times when you can feel like you are ploughing a lonely furrow. But if you know in your gut that something is wrong, it is important to just keep going. This was one of those cases. But it has certainly been championed by the Minister, who has been an excellent advocate on behalf of all these people. It has not been easy. I accept that some of the decisions that he had to make were not easy and were not always welcomed by everyone, but he tried his best and we have this Bill today because of him.

I have one final thing to say, and this is unfinished business. The Minister knows what I am going to say now and it is about Capture, the pre-Horizon scheme, which I have been investigating. Hopefully, we will get justice for those individuals as well, and, again, the Minister is determined to get to the bottom of that by appointing an independent investigator to look at the cases that have been referred to him. I shall be looking from afar with interest, but I know that whoever picks up his brief or takes on this case will not be able to put it down unless they get that justice.

In politics, people often ask whether you can actually achieve anything. There is a lot of cynicism these days. I say to anybody who is aspiring to be a Member of this place that they can change things, they can make a difference, but they have to be persistent. Most of the time, people across the other side of this House may be political opponents, but they are not our enemies. We do the best in this place when we work together, and, in this case, cross-party working has achieved final justice for these people.

[Kevin Hollinrake]

With the leave of the House, I have a few final comments. The shadow Minister asked about the Capture software that was used prior to the Horizon software. The right hon. Member for North Durham (Mr Jones) has pushed strongly on these matters, and we are having an independent investigation into them, which we anticipate will report later this year. I am sure that he will take a keen interest in that, as will those on the Opposition Front-Bench team. It is important that we get redress as soon as possible. The Bill opens the door to rapid redress for hundreds of victims of this scandal. We believe that we can get redress paid from July onwards, when the new scheme will be put in place. On the Court of Appeal, we are very interested to ensure that those people also get a fair hearing, and a rapid rehearing of their cases, and can be exonerated wherever possible.

Post Office (Horizon System) Offences Bill

Debate between Lord Beamish and Kevin Hollinrake

Committee of the whole House
Monday 29th April 2024 Commons Chamber

[Kevin Hollinrake]

I understand and accept that point, but a decision has to be taken on whether to include these cases. There is definitely a difference of legal opinion on that point, because I have had different representations made to me.

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. Those affected can apply to the Criminal Cases Review Commission, which can review their cases.

[Mr Kevan Jones (North Durham) (Lab)]

The Minister knows that we on the advisory board have discussed this issue at length. Given what has come out of the inquiry over the last few weeks, does he agree that there is evidence that may have a bearing on some of these cases? I accept why he does not want to include them in this Bill, but we need to look at some of these cases to see whether there are grounds for appeal.

[Kevin Hollinrake]

Of course, and I am listening intently to the evidence before the inquiry. It is true to say there are some shocking revelations. As the right hon. Gentleman illustrated in his work with the advisory board, there was a maliciousness about some of the prosecutions, which is of great concern, as is the flawed Horizon system. Part of the reason why we are legislating as we are reflects that, but we will continue to look at the evidence that emerges.

--- Later in debate ---

[Mr Kevan Jones]

Clause 2(2) mentions 23 September 1996. Is the Minister saying that any ICL Pathway system installed in post offices, even prior to that date, will be captured by the Bill?

[Kevin Hollinrake]

Certainly, if we regard it as a pilot system of Horizon, that would be the case, as drafted.

[Mr Kevan Jones]

So is the date irrelevant? I have spoken to one person whose prosecution might have been 1996, but there is evidence that the Pathway system was in place before that date in 1996.

[Kevin Hollinrake]

That is not what we understand from the Post Office, but I am happy to continue our discussions, as I always do, to make sure that every relevant person affected by Horizon or its pilot systems is covered.

Post Office (Horizon System) Offences Bill

Debate between Lord Beamish and Kevin Hollinrake

2nd reading
Wednesday 20th March 2024 Commons Chamber

[Mr Jones]

They were hiding, yes, because of shame and things such as that. It is only now that we realise what a massive miscarriage of justice this was that people have had the confidence to come forward. This Bill will help with that.

I shall come off Capture, because I think the Minister has got my point, but I return to those cases that have already gone to appeal. I do not criticise the Government on this, but we must find a system for dealing with those few cases that have gone through. It is no good the Court of Appeal hiding behind the fact that they have gone through, because, as the hon. Member for Sutton and Cheam has said, new evidence has come out of the inquiry that was not available to the courts at the time. We cannot just leave those people hanging—I cannot remember off the top of my head how many individuals there are, but there are not that many.

[Kevin Hollinrake]

Let me just clarify that point. A total of 1,200 people have come forward since the TV dramatisation. Seven people have taken their case to the Court of Appeal and been heard, and six have been refused leave to appeal, which makes a total of 13 in that cohort.

[Mr Jones]

What a fine research assistant the Minister is! He is right: the number is in single figures. Let us look at those cases. Let us see whether we can move forward on this. I am not criticising the Government for not including those individuals. I understand why they are not in the Bill, but we need to look at them. There are things that came out of the inquiry that would have changed the outcome in some, but perhaps not all, of those cases. If we do not look at them, those people will be left outside the remit of the Bill.

On the territorial extent of the Bill, I think the case was made earlier in relation to Northern Ireland. I see no reason why the Bill should not include Northern Ireland. We have cross-party support for it in Northern Ireland, and, as I understand it, the Executive are on board as well. We need to recognise that in Committee. I have to say to the hon. Member for Motherwell and Wishaw (Marion Fellows) that I have less sympathy with the idea of including Scotland in the Bill. Not because those individuals should not get justice—they should—but because the issue is different in Scotland. There are, in fact, two issues. First, there is the legal position: the way things are prosecuted in Scotland is very different from how it is done in the UK. Furthermore, there is a mechanism to do it, so the Scottish Government just have to get on and do it. I accept what she is saying about waiting to see what we do, but they would need cross-party support in the Scottish Parliament if that were to go forward. I do hope, however, that some amendment on Northern Ireland is brought forward in Committee, and I would certainly support it.

Finally, let me talk about the notification of individuals. Reference was made earlier to record keeping, which was not brilliant at the Post Office. We have to try to find “reasonable steps”, as the Bill says, to notify individuals. We need to look at that, because, again, some of these cases will be legacy cases. Sadly, some people will have passed away before they were able to get justice. Perhaps we need to say how we get to those cases that are possibly more difficult to get to than others.

To conclude, the Bill is long overdue, which makes this a historic day. I think of the woman I sat in front of in her council flat in the north-east of England, whose life has been ruined for the past 20 years, and who has had daily trauma because of the injustice and financial heartache that she and her family have faced. With the Bill, she will finally get justice; if that is the one thing I do in my time in this House, it will make me very happy.

--- Later in debate ---

[Kevin Hollinrake]

Employees generally are an issue, because they do not have a contractual relationship with the Post Office, which is required to enter the compensation scheme, but if the company itself did have one it could make a compensation claim that could then be passed on to that individual. I am very happy to discuss individual cases with the hon. Gentleman, or with other Members.

I pay tribute again to all the work of my hon. Friend the Member for Sutton and Cheam. I agree that this was a case of human failure as well as technological failure, and that the wheels of justice are moving too slowly. That is why we have stepped in in this way. I am always grateful for the work of the right hon. Member for North Durham, not least on the Horizon compensation advisory board. He has made some important recommendations, which we have adopted. He gave a four-legged analogy about the person I am: he called me more shire horse than show pony, which I take as a compliment. I would describe him in a four-legged way as well: he is a cross between a terrier and a rottweiler, and he is highly effective in the way he approaches this issue.

The right hon. Gentleman asked about convictions relating to pilot versions of Horizon. That is why we have set the date at 23 December 1996. That is the first point of the roll-out of an application called Pathway, which was a predecessor Horizon application. We think that the legislation, and therefore the redress schemes, capture—if I can use that word—cases that relate to the pilot schemes in clause 8.

As the right hon. Gentleman knows, we look at the Capture system slightly differently. Capture is a stand-alone spreadsheet rather than a network computer system. There is no remote access, for example. The key thing is that what we are doing here is exceptional and unprecedented. We have the body of evidence because it has been before a court. Part of the reason the court made its decision in 2019 was based on the Horizon issues, as it put it. We do not have that body of evidence with Capture. We are keen to talk to him to ensure that we look at the evidence. That conversation will continue.

The right hon. Gentleman talked about the power to make consequential provision. We do not see that as giving us the ability to include another group of people; there are different reasons why that power is in the Bill. It is for matters that are a consequence of the Bill, which we do not think is the right vehicle to include people, for example, who have been affected by the Capture system. As I say, we will continue to discuss that.

As I said earlier, we understand the arguments about Northern Ireland, and we will continue to engage, as we will with other Members of this House. In terms of reasonable steps, the process is in development. It is about marking the records and writing to individuals. When we have passed the legislation, we will write literally that day, or the next day, to those individuals to say, “You’re conviction has been quashed,” and we will give them details about how to claim compensation.

[Mr Kevan Jones]

I know that the Minister is committed to ensuring that everyone is contacted. What about the legacy cases—when people have passed away? Will someone try to contact their estates, for example?

[Kevin Hollinrake]

Those are challenging issues. The key thing—I hope the right hon. Gentleman takes this in the right way—is that what we are doing here to quash convictions does not require people to come forward. When the conviction has been quashed, we will contact the most relevant person in that context. Those people can take forward a claim in exactly the same way, and it will be considered in exactly the same way, as any other claim. The estate, the families, can claim compensation.

[Mr Jones]

I agree with the Minister, but I think this needs to be given some thought. Perhaps the advisory board might look at legacy cases in which people have passed away, because those entitled to compensation might not come forward. We might have further discussion about that.

[Kevin Hollinrake]

I am very happy for us to look at that, and to work with the right hon. Gentleman and the advisory board. I take this opportunity to pay tribute to him, Lord Arbuthnot, Sir Chris Hodges, and Professor Richard Moorhead for their work in this area. We will continue to work closely alongside the right hon. Gentleman.

My hon. Friend the Member for North Norfolk (Duncan Baker) recognised the work of people other than me on this matter—not least the Secretary of State, the Prime Minister and the Chancellor. I recognise that he is the only serving postmaster in this place, so we always listen carefully to what he says. Like him, we encourage people to come forward to claim compensation.

The people not included in the legislation—those who have been convicted as a result of prosecution by the DWP—can still appeal in the normal way, and I encourage them to do so if they feel that there are grounds for that. My hon. Friend asked about Fujitsu and the quantum it is due to pay. Our view has always been that we should let the inquiry conclude and determine responsibility. We will then know the extent of the compensation bill, and that will be the right time to have a conversation about contributions, for which Fujitsu has already accept a moral responsibility; we welcome that. Although the Post Office has had a chequered past in this regard, I believe that it has a very bright future, and we are keen to ensure that it does. We should always keep that in mind.

I understand what the right hon. Member for East Antrim (Sammy Wilson) said about the territorial extent of the Bill. As I said, I met the First Minister, Deputy First Minister and the Minster of Justice for Northern Ireland yesterday, and I will continue to do so. We are determined to ensure that measures are brought forward as quickly as possible in all areas of the United Kingdom. The right hon. Member makes a compelling case about the need for public consultations in his jurisdiction. We are aware of that. There are 26 cases in Northern Ireland, and we are keen to ensure that they are overturned as quickly as possible. We will continue work to ensure that that happens.

The right hon. Member for Orkney and Shetland talked clearly about ensuring that prosecutors are accountable for their role. Decisions were taken in Scotland. He was right to say clearly that a legislative consent motion does not offer the same level of parliamentary accountability, and I think we should all reflect on that. His final words were “accountability makes a difference.”

The hon. Member for North Down (Stephen Farry) talked about his preference for the measures to be UK-wide. We understand that; we have had several conversations and will have many more, I am sure. I understand his point about the risks of judicial review and of delays to public consultation. He feels that he makes an overwhelming argument. We will keep those conversations going.

I concur with the shadow Minister, the hon. Member for Bethnal Green and Bow, and echo her tribute to Alan Bates, Jo Hamilton, Lee Castleton, journalist Nick Wallis, campaigner Dan Neidle, another journalist Tom Witherow, Lord Arbuthnot, Karl Flinders and many others, including many Members of this House. We pay tribute to them for their work. We recognise the profound impacts that the Horizon scandal has had on those who were falsely accused. It has taken too long to get to this point, and our ambition is to get this legislation through both Houses by July and compensation paid to the victims by August. Through this Bill, we will exonerate those who were so unjustly convicted of crimes that they did not commit and provide fair redress as swiftly as possible. I commend it to the House.

Question put and agreed to.

Bill accordingly read a Second time.

Post Office Board and Governance

Debate between Lord Beamish and Kevin Hollinrake

Wednesday 28th February 2024 Commons Chamber

[Kevin Hollinrake]

I thank the hon. Lady for making that point and for representing her constituents so well. Yes, absolutely, we understand that this is distracting, or could distract, from work to ensure not just that we make right the wrongs of the past, but that the Post Office has a strong future, as she put it. I totally agree. We think that the Post Office does have a strong future. Revenue streams have been affected by changes in how and where people acquire certain things or access certain services, but the banking framework—we encourage the Post Office to be more ambitious in its negotiations with the banks on the remuneration that flows from the framework to postmasters—and the parcel hubs are an opportunity for the future. We believe that the Post Office has a strong brand and strong future. We are keen to support its efforts to ensure that the future is bright for all postmasters.

[Mr Kevan Jones (North Durham) (Lab)]

I declare my interest as a member of the Horizon advisory board. Welcome back to the Minister. He should bring in his sleeping bag—he is here that often. I was at the five-hour marathon yesterday, and I was totally unconvinced by Henry Staunton’s accusations, and his allegations about delaying compensation. Like the hon. Member for Christchurch (Sir Christopher Chope), I wonder why Mr Staunton was appointed in the first place—to any board, for that matter. However, to come to the point, Mr Staunton did raise the point that the chief executive is under investigation, following an 80-page report. I accept that the Minister cannot talk about that individual—that would be wrong—but he knows that the culture at the Post Office is rotten, and it is important that the cloud be lifted quickly. When the Secretary of State came to the House on 19 February, did she and the Minister know that Nick Read was under investigation? Is it true that the former HR director who wrote that report has left the Post Office with a settlement, and does that settlement include a non-disclosure agreement?

[Kevin Hollinrake]

I am very happy to come to the Dispatch Box any time I am required to, or feel that there is a need to, which, as the right hon. Gentleman says, is quite often at the moment.

I was aware of the investigation relating to Mr Read and Mr Staunton. That was not the reason why the Secretary of State decided to part company with the chair; that was about interfering with the investigation. The right hon. Gentleman asks about the HR director. I do not know about those matters, but I am happy to look into them and come back to him.

Post Office Horizon: Compensation and Legislation

Debate between Lord Beamish and Kevin Hollinrake

Monday 26th February 2024 Commons Chamber

[Kevin Hollinrake]

I thank my right hon. Friend for her constant correspondence and engagement with Mr Ward. I wrote to her recently about the case, and asked to be kept updated on his progress.

The £75,000 is one of two routes that people can take. If they feel that their claim is below £75,000, they do not have to submit any evidence and can simply opt for the £75,000, take that money off the table, and move on with their lives. If they feel that their claim is significantly higher than that, they can opt for the full-assessment route, which inevitably takes more time because assessing someone’s loss is a complex process. The submission of a claim for financial loss will require forensic accountants on behalf of the claimant, and other assessments of the type that my right hon. Friend mentioned will also be needed. All the compensation schemes with which I have been involved during my time in this place have been complicated, but we are trying to simplify this one. Only last week we discussed with the advisory board measures to accelerate the process, but the fundamental principle is that claimants such as Mr Ward should always be given the benefit of the doubt.

[Mr Kevan Jones (North Durham) (Lab)]

I declare my interest as a member of the Horizon compensation board, and I thank the Minister for his statement. It is welcome to see him, rather than the Secretary of State, present today’s statement. I welcome the approach that the Government are taking on overturned convictions, but I note that it includes pilots.

I have given evidence to the Minister and the public inquiry about the Capture system. Those affected need to be included in any overturned convictions and to get compensation. I am slowly getting the evidence out of the Post Office and from individual cases, and it comes back to a point that the Chair of the Select Committee just made about the role of the Post Office. The Minister wrote a letter at the weekend to the Select Committee, saying that the culture at the Post Office has changed, but it clearly has not; the toxic culture is still there. Until the Post Office is taken out of this process altogether and forced to regurgitate the information, nothing will change. The Minister knows that one of the advisory board’s recommendations is to do exactly that. Until we do it, postmasters will not have any faith in the process.

[Kevin Hollinrake]

I thank the right hon. Gentleman again for his tireless work over the years and, indeed, for his work in recent months on the advisory board. It is hugely important for accelerating this process.

We have discussed Capture on a number of occasions. It is important that we have the right body of evidence on that, and I am keen to work with the right hon. Gentleman to make sure that we do. Clearly, intervening in matters that were independently decided by the courts is a step we take very rarely—it is unprecedented in this context—but I am happy to discuss that further with him and to help him seek evidence from the Post Office where he needs more evidence on this issue. We discussed it last week, and I am keen to make sure that we have the process running as independently as possible.

I can assure colleagues, any claimants out there and the wider public that every single process—not least the GLO scheme and the overturned convictions scheme—has an independent reviewer. It is Sir Gary Hickinbottom for the overturned convictions scheme and Sir Ross Cranston for the GLO scheme. These are very highly regarded individuals, who will make sure that postmasters who come forward are fairly treated and get the redress they deserve.

Post Office Horizon Scandal

Debate between Lord Beamish and Kevin Hollinrake

Thursday 22nd February 2024 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

(Urgent Question): To ask the Secretary of State for Business and Trade if she will make a statement on financial redress for sub-postmasters and outstanding issues relating to the Post Office Horizon scandal.

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

As a Back Bencher, I first spoke on the matter of compensation for victims in March 2020, which is obviously long after the right hon. Gentleman first campaigned for it. I pay tribute to his campaigning on this subject, which remains undiminished. My appetite for compensation for postmasters is equally undiminished, although I accept the need to increase the pace of delivery.

As of this month, £160 million has been paid in financial redress to more than 2,700 victims affected by the Horizon scandal. More than 78% of eligible full claims received have been settled as follows: 102 convictions have been overturned, and 42 full claims have been submitted, of which 32 have been settled; 2,793 applications to the Horizon shortfall scheme have been received, and 2,197 have been settled; 58 full claims have been submitted to the group litigation order scheme, and 41 have been settled.

Our top priority remains ensuring that victims can access swift and fair compensation. We have introduced optional fixed-sum awards of £600,000 for victims with overturned convictions and of £75,000 for group litigation order members as a swift means of settlement, and 100% of original applicants to the Horizon shortfall scheme have received offers of compensation. Today we are discussing what other measures can be taken to speed up compensation with the Horizon compensation advisory board, on which the right hon. Gentleman sits.

Since the Prime Minister’s announcement on 10 January, officials in the Department for Business and Trade and the Ministry of Justice have been working at pace to progress legislation for overturning convictions related to the Post Office’s prosecutorial behaviour and Horizon evidence. I will provide a further update to the House very soon.

[Mr Jones]

Thank you, Mr Speaker, for granting the urgent question. I draw the attention of the House to my interest as a member of the Horizon compensation advisory board.

I like the Minister. He campaigned on this issue before he was a Minister, and he has been a very good Minister, but a lot of that good work was undone on Monday by the performance of the Secretary of State for Business and Trade. I am disappointed that he has not taken the opportunity today to talk about the overturned convictions. I understand that later today, at 12 o’clock, there will be a written ministerial statement on the subject. I do not think that is the way to do it, as the House needs an opportunity to discuss the overturned convictions.

I will ask the Minister a few questions. It is quite clear now that Nick Read, the Post Office chief executive, wrote to the Lord Chancellor basically opposing the overturning of all convictions, saying that up to 300 people were “guilty”. It is not yet clear who instructed him to do that. On Monday, the Secretary of State said it was done off his own bat. I would like to hear what the Minister has to say on that.

If there are to be overturned convictions, they cannot just be about Horizon; they should also be about Capture. Evidence that I have put to the public inquiry and sent to the Minister yesterday clearly indicates that the scandal predates Horizon. Those affected need to be included in both the compensation scheme and among those with overturned convictions.

The board is meeting this afternoon, and we have made recommendations to the Minister on how to simplify and speed up the compensation scheme. Will he give an assurance to the House that once the recommendations are agreed, we can announce them quite quickly, primarily to restore to the sub-postmasters some faith, which was wrecked by the performance of the Secretary of State on Monday?

If the Minister’s written ministerial statement at 12 o’clock is about overturning convictions, will he give a commitment to come back to the House on Monday to give an oral statement, so that the House can interrogate him and discuss that issue?

[Kevin Hollinrake]

I thank the right hon. Gentleman for his question. The overturned convictions are a key priority for me and my Department. I am always keen to update the House whenever I can. There always has to be a sequence to ensure that we follow proper process. What we are doing potentially affects the devolved Administrations, so it is really important that we engage with them properly. That is one of the reasons why we need to make the written statement later today. I have never been unwilling to come before the House and report on what we are doing. I will, of course, continue to do that.

On the letter from the chief executive to the Justice Secretary, I am aware of the allegations by Mr Staunton. They are very serious allegations that should not be made lightly or be based on a vague recollection. If the right hon. Gentleman looks at the letter from the former permanent secretary, it is clear that she believes the allegations are incorrect, and that there was never any conversation along the lines referred to by Mr Staunton. I think it is pretty clear that those allegations are false.

The right hon. Gentleman has regularly brought up Capture. We are keen to continue to engage with him on that to ensure that those affected are included in any compensation where detriment has occurred. I note his point about an oral statement. As I say, I am always keen to give such statements whenever possible, and to be interrogated on our plans. I do not think he will be disappointed by what we announce later today.

Post Office Horizon Scandal

Debate between Lord Beamish and Kevin Hollinrake

Wednesday 10th January 2024 Commons Chamber

[Kevin Hollinrake]

I thank my hon. Friend for contributing to these important debates in the House once again. He brings first-hand experience, as the only postmaster serving in the House. He is quite right to say that money was taken, and someone must have noticed it. One would think that the finance departments or auditors would have noticed it, as it would have appeared in some kind of suspense account and was presumably transferred out at some point. I will endeavour to find out the number, as I do not have it. We do know that prior to Horizon being installed in the post office network, there were around five prosecutions a year. That suddenly jumped to about 60 a year. We know that there were significant numbers of prosecutions, and the fact that there are around 3,500 postmasters in the various compensation schemes illustrates the scale of the problem. I will endeavour to find out a number for him.

[Mr Kevan Jones (North Durham) (Lab)]

I thank the right hon. Member for Haltemprice and Howden (Sir David Davis) for securing this UQ. I know the Minister wanted to make a statement but was overruled by No. 10 so that the Prime Minister got the glory of making the announcement. A serious point is that had we not got this UQ, there would have been no debate today, which is a disgrace.

The Minister knows that the advisory board has been tied in a Gordian knot for quite a few months, which is why we wrote our letter to the Justice Secretary before Christmas. He is right that this will be messy whichever way we do it, but it needs to be done, because people are still out there with convictions that need overturning. I welcome the advisory board having discussions later this afternoon and in the next few weeks on how things should take place, but I urge the Minister—I know he will—to engage with all political parties in this House. If we can get all parties’ support for the proposal, that will make it a lot stronger.

The point raised by my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) about the pre-Horizon schemes is important. I welcome the changes to the compensation, as they will speed things up for some victims, but in the case of those who have died whose convictions are overturned, will their estates be able to access compensation?

[Kevin Hollinrake]

Once again, I thank the right hon. Gentleman for all his work on this campaign over many years and for his work on the advisory board, which has been an essential part of seeking a resolution. I will of course continue to work cross-party, as I have done all the way through on this matter, from the Back Benches and now from the Front Bench. I appreciate the support and engagement we have had from all political parties in this area, both Front Benchers and Back Benchers.

Yes, we are cognisant of the pre-Horizon pilot scheme, and we will keep working to make sure the people involved are included in compensation. Yes, if people have sadly passed away—over 60 have passed away waiting for compensation and justice—the compensation will go to their estate and therefore to their family. That is an assurance I can give him.

Horizon: Compensation and Convictions

Debate between Lord Beamish and Kevin Hollinrake

Monday 8th January 2024 Commons Chamber

[Kevin Hollinrake]

My right hon. Friend makes a good point, and that definitely played a part in the Post Office’s ability to take forward prosecutions. That is something that my right hon. and learned Friend the Lord Chancellor is looking at across the piece, not least in connection with the Post Office, although, as I said in my statement, it has not taken forward any prosecutions since 2015 and I think it is highly unlikely that it would try to, even before things might be changed.

[Mr Kevan Jones (North Durham) (Lab)]

I thank the Minister for his statement and declare an interest as a member of the Horizon compensation advisory board.

I think we need more TV dramas, because it has had a remarkable effect on attendance in this House tonight. The drama was successful because it spoke about the victims. Many of us who have been involved in this case for many years have met many of them—I know the Minister and his predecessor have too—and know the torment that those individuals have been through, and the drama was excellent in showing that. The key thing now, as Alan Bates said at the weekend, is to get the compensation out of the door as quickly as possible.

I welcome what the Minister says on overturned convictions. The advisory board made recommendations on that, and I think all 927 convictions need quashing. May I ask him whether we can consider that on Wednesday at our next meeting, and what timescale he is looking at? Can we also get the pre-Horizon scheme that has now become evident, which my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) referred to, bottomed out very quickly to find out how many cases there are and how many were prosecuted—I know of at least two—so that we can get justice for those individuals as well? If anyone thinks there are not still people out there, I had three people contact me this afternoon, and I have spoken to them. There are people out there who we still need to reach out to.

[Kevin Hollinrake]

Absolutely. I think the programme not only captured the type of people we are talking about here, whom people who have met the sub-postmasters are already aware of, but perfectly highlighted the Post Office’s brutal and desensitised approach in these matters. That is part of the reason why the programme has created the situation we have today, and we welcome that, because we are keen to deliver the compensation scheme and get support for it across the House and across the nation.

I thank the right hon. Gentleman for his work on the advisory board. I certainly hope to attend that advisory board meeting on Wednesday and share some of our thinking at that time about what measures we are proposing. He raised an important point about the pilot scheme and people affected by the pilot version of Horizon. We believe they are still covered by the compensation schemes—I think he agrees with that as well—but we want to make sure that those people have been reached out to. As I said when we spoke about it this morning, if he shares the details of those people with me, we will find out whether they have been contacted, and if not, why not, because other people might be in a similar circumstance.

Post Office (Horizon System) Compensation Bill

Debate between Lord Beamish and Kevin Hollinrake

2nd reading
Tuesday 19th December 2023 Commons Chamber

[Kevin Hollinrake]

With the leave of the House, it is a pleasure to conclude this debate. We have heard insightful contributions from right hon. and hon. Members across the House, many of whom have championed this cause and campaigned for justice on behalf of postmasters for many years. I pay particular tribute to the right hon. Member for North Durham (Mr Jones), my hon. Friend the Member for Telford (Lucy Allan), the hon. Members for Jarrow (Kate Osborne), for Kingston upon Hull East (Karl Turner), for North West Leicestershire (Andrew Bridgen) and for Motherwell and Wishaw (Marion Fellows) and others, who have demonstrated the best of cross-party campaigning in the interests of those affected by this scandal.

I have addressed the House many times on the subject of the Post Office Horizon scandal, both as a Back Bencher and now as the responsible Minister, and I want to respond to the specific points raised in the debate. The shadow Minister who opened the debate, the hon. Member for Bethnal Green and Bow (Rushanara Ali), rightly talked about further delays. I want to stress that this is not about further delays, but about preventing an arbitrary date being set, so that people whose claim has not been submitted or is not at the stage where it has been completed or settled can still get compensation.

I say to the other shadow Minister, the hon. Member for Croydon Central (Sarah Jones), as I said in my earlier remarks, that the commitment is that we will get 90% of offers out in 40 working days. We are doing a number of things to expedite settlements and accepted claims, not least the fixed-sum award for overturned convictions. She asked about the number of people who have taken that route. For confidentiality reasons, we do not think it is right to state the actual number, but it is a significant proportion, so certainly it is a route that many people think is the right one for them to take. Obviously that is a matter for the individual, and claimants can pursue the standard full assessment process if they feel that is their best option.

Not everything is within our gift, and that is one of the frustrations that we have, because these claims can be complex and require legal input from the claimant’s side. It can take time for the claims to be compiled before they are submitted. That is one of the reasons why we think it is right to delay the long-stop date of 7 August next year.

The hon. Member for Croydon Central asked about the resources and about how we will expedite the settlements. She may be aware that we have recently committed to additional resources for the Post Office. Part of that is to increase the resources committed towards the inquiry, but another part is committed to compensation. We think all the resources are there to get this money paid out within the timeframes we have set out.

I pay tribute again to my hon. Friend the Member for Sutton and Cheam (Paul Scully) for all of the work he did on this scheme. It is perhaps a little bit ironic that I used to push him from the Back Benches and now he is pushing me from the Back Benches on a similar issue. He is a very sad loss to the Front Benches in this House; he did a fantastic job and he speaks with great authority on this subject. As he says, the best work he did in the Department he attributes to this particular area, so I thank him for all he has done.

My hon. Friend asks whether we need to extend this the long-stop date and why. It is very much a long-stop position. We want to get the payments out before 7 August but, as Sir Wyn Williams advised, this is the right thing to do. My hon. Friend also asked whether, if we were to start again, which I do not think is the right thing to do, we would do things in this way, with three different compensation schemes. I think Sir Wyn Williams said something very similar: we would not do it like that, but all together in one single scheme. However, we are not there and it is right to push ahead now with the work we are doing in this form.

The hon. Member for Strangford (Jim Shannon), who is not in his place, said that we need to go faster, not slower. We are not going slower; we are going faster, and that is what we are keen to do. The same issue was raised by the right hon. Member for East Antrim (Sammy Wilson), who rightly pushed us to make sure we are delivering this at pace. My hon. Friend the Member for Sutton and Cheam also talked about doing things at pace; “pace” is a word I use a lot in my Department—my officials will probably support that remark—so I totally agree with him. If I may say so, I think the pace in a Department should be dictated by Ministers, so it is my responsibility to make sure that the schemes are delivered at pace.

My hon. Friend wished the House a merry Christmas; I am pleased, and I think we should all be pleased, that 27 families have had convictions overturned and may be able to enjoy their Christmas a little bit more than previous Christmases. Their ability not only to receive compensation, but to move on and move away from some of the trials and tribulations that they have faced in getting compensation and getting justice, is welcomed by everyone in the House.

As always, I thank the hon. Member for Motherwell and Wishaw for the work she does on the all-party parliamentary group on post offices. She pointed out the very significant value that post offices have in communities. I could not agree with her more that the disclosure areas were unacceptable. That should not have happened and we made that very clear to Post Office management. I agree with her entirely on Fujitsu. Anybody who is shown to be responsible for the scandal should be held accountable, and that may also include compensation. We have stated that on the Floor of the House on a number of occasions. She refers to senior executives in terms of the inquiry sub-metric, having repaid bonuses voluntarily. Those are not something we would want to see in future. I also agree with her and others, including the right hon. Member for North Durham, about some of the people who have been instrumental in this matter outside this House. She referred to Dan Neidle. Nick Wallis, Karl Flinders and Tom Witherow have also been important contributors in ensuring that sub-postmasters get the justice they deserve.

I thank the right hon. Member for North Durham again for all his work and for his work on the advisory board. He talks about a sword of Damocles and is right to say that we are removing it. He speaks very movingly about Tom Brown and what happened to him: the indignity of having his home searched, hardship, bankruptcy, the impact on his family, and his reputation in the community. All were intolerable situations. He sadly passed away prior to receiving compensation. In my constituency, Sam Harrison, a sub-postmaster in Nawton, near Helmsley, went through a similar set of circumstances, certainly in relation to financial difficulty. She sadly passed away earlier this year without receiving compensation. There is a huge human cost, as well as a financial cost. I talked to the advisory board about potential counselling that might be made available to sub-postmasters. We also talked about restorative justice. Sir Wyn Williams has referred to that and it is something we are keen to look at.

The right hon. Gentleman mentioned a predecessor to the Horizon scheme in the north-east. If we are on the same page, I understand that was a pilot scheme for Horizon, so we are confident that our current compensation schemes can deliver outcomes and compensation for the individuals he refers to, but if he does not agree with that I am very happy to have a conversation with him.

[Mr Kevan Jones]

That is welcome, but I think the Minister knows my views on the advisory board. We need to try to find out exactly how many people were prosecuted and in what circumstances. It shocked me, and I think the Minister too, that even with all the publicity about Horizon, no one actually said, “By the way, we had this scheme.” If it had not come out in the inquiry, or I had not intervened to see that individual in the north-east, would it just have been forgotten about?

[Kevin Hollinrake]

Those people will not be forgotten about. I am very happy to work with the right hon. Gentleman and the advisory board on any matter he raises with me. I think we are very like-minded on all the issues he has brought to us so far and we are keen to deliver solutions where we think they are required. I agree with him about Sir Ross Cranston. I worked with Sir Ross from the Back Benches. He came in with the review of the Lloyds-HBOS scheme and did a fantastic job. I also agree with him on holding individuals to account. Whether it be Lloyds, HBOS or Post Office Ltd, I do not think we will ever stop these things happening until we hold individuals to account. He talked about Paula Vennells’ CBE. I think Sir Tom Scholar, the head of the relevant body on the forfeiture of honours, has said that we need to wait until the end of the inquiry to consider that, but it should certainly be looked at. I completely associate myself with the comments of the right hon. Gentleman’s former constituent Tom Brown in relation to holding people to account.

In response to the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones), yes we are allowing ourselves extra timescales but we do not want to use them. On the Christmas deadline, I think we are on the same page on this. It was Christmas this year for the Horizon shortfall scheme. We have now delivered offers to 100% of those people who have applied through that scheme, which meets our objective. Nevertheless, many of those cases are complex and not everything is in our gift to ensure that claims are put in promptly so that they can be dealt with quickly.

I thank the right hon. Member for East Antrim for his kind words. I commit absolutely to giving regular updates to the House. I am very happy to come to speak to hon. Members about this, both on the Floor of the House and by other means. There are regular updates about compensation payments on the gov.uk website. I agree entirely with him about accountability and the need to ensure that the guilty are held responsible. He is right to say we will be rigorous with anybody who is shown to be guilty, including at Fujitsu. He is also right to say that there are some things associated with a tremendous scandal that we can never compensate people for. That is why we are here, keen to deliver a final resolution to these problems.

My Department and I continue to work hard to ensure that those affected by the Horizon scandal receive the full and fair compensation that they are owed. The Bill is just part of the action that the Government are taking to defend the interests of postmasters. I commend it to the House.

Question put and agreed to.

Bill accordingly read a Second time; to stand committed to a Committee of the whole House (Order, this day).

Further proceedings on the Bill stood postponed (Order, this day).

Post Office (Horizon System) Compensation Bill

Debate between Lord Beamish and Kevin Hollinrake

Committee of the whole House
Tuesday 19th December 2023 Commons Chamber

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

Thank you, Chair Nige—el.

We had a useful Second Reading debate. I am grateful for the constructive contributions from Members across the House. I welcome the chance for a more detailed examination of the Bill in this Committee of the whole House.

Clause 1 provides the continuing legal basis to pay compensation to members of the group litigation order scheme beyond the current deadline of 7 August 2024. As we have discussed, that is the deadline by which the Government aim to have concluded compensation payments to GLO members, but that power removes any doubt as to our ability to fund compensation beyond that date should it prove necessary.

Clause 1 does that by empowering the Secretary of State to make payments

“under, or in connection with, schemes or other arrangements—

(a) to compensate persons affected by the Horizon system;

(b) to compensate persons in respect of other matters identified in High Court judgments given in proceedings relating to the Horizon system.”

That definition provides additional flexibility beyond the specific GLO scheme to facilitate compensation payments related to Horizon should it ever be required in future.

Clause 2 sets out the short title of the Bill.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clause 2 ordered to stand part of the Bill.

New Clause 1

Eligibility of Potential Claimants

“The Secretary of State must amend the schemes to which this Act applies to ensure that—

(a) all persons affected by the Horizon system who have had their convictions quashed are compensated on the same basis, regardless of the rationale of the decision to quash the conviction; and

(b) all persons affected by the Horizon system with extant convictions relating to the Horizon system are compensated on the same basis as those claimants with quashed convictions, with the exception of those claimants whose convictions were based on clear, compelling and corroborated evidence.”—(Mr Kevan Jones.)

Brought up, and read the First time.

[Mr Kevan Jones (North Durham) (Lab)]

I beg to move, That the clause be read a Second time.

I rise to speak to new clause 1, which stands in my name and those of the hon. Member for Motherwell and Wishaw (Marion Fellows), the right hon. Members for Haltemprice and Howden (Mr Davis) and for East Antrim (Sammy Wilson), and my hon. Friend the Member for Jarrow (Kate Osborne). The clause would do two things: first, it would provide that all those with overturned convictions would receive compensation on the same basis, including the so-called public interest cases. Secondly, it would provide for all those with convictions that have not been overturned to receive compensation on the same basis as those with overturned convictions. I will deal with both issues in turn.

Reference has already been made to the number of overturned convictions that have gone through the Court of Appeal. Lord Arbuthnot and I approached the criminal cases review body about 10 years ago to highlight the injustice of these cases. In 2020, the Criminal Cases Review Commission started referring cases to the courts to overturn the convictions—the number of Post Office Horizon cases sent back to the courts has already made this the most widespread miscarriage of justice seen by the CCRC. Many of those cases have been described in quite a lot of detail today, with individuals such as pregnant women and others being sent to prison, including individuals who have since had their convictions overturned.

In April 2021, 39 former sub-postmasters had their convictions quashed by the Court of Appeal. The court concluded that the Post Office should not have prosecuted them in the first place, and found the Post Office’s conduct to be

“an affront to the conscience of the court”.

What has subsequently come out in the inquiry makes me wonder how on earth some of these people slept at night, knowing what they knew at the time while pursuing those individuals in court. Earlier, I made reference to Paula Vennells, who I understand is also an ordained Church of England priest—she clearly did not extend her godliness and forgiveness to those who were clearly innocent, but who she was quite content to see prosecuted. As far back as 2011, if not earlier, she knew that the Post Office system was not infallible, as other things possibly are in biblical spheres.

As the right hon. Member for East Antrim said, the idea that we suddenly had a huge influx of kleptomaniacs working for the Post Office—that all these individuals were somehow guilty—was absurd. It should have rung alarm bells, but it did not. The Post Office went on regardless. Not only did it pursue people and take them through the courts, but it took individuals such as Tom Brown to court and then, at the last minute, supplied no evidence, having already ruined those people’s reputations and lives.

As has been said, 93 individuals have had their convictions overturned so far, but there are many more people whose convictions remain unchallenged. We have had some debate on the advisory board about the numbers—I think the figure for the Post Office is about 700, but another 200-odd cases relating to Horizon issues were prosecuted by other bodies, including the Department for Work and Pensions. It worries me that only 93 of the 700 Post Office cases have been overturned.

Some people might ask, “Why haven’t these individuals come forward?” Having met many of them—those who have had their convictions overturned, or other victims of the sub-postmasters injustice—I think that they just want to close this chapter of their lives. They are not going to go anywhere near a court, and in some cases they have passed away. However, I urge anyone who was prosecuted to please try to come forward, although I know how difficult that is for some individuals. It is to the credit of the Minister and the Department that they have tried to reach out to some of these people but, as I say, having met them, I know that is not very easy.

Post Office Horizon IT Scandal: Compensation

Debate between Lord Beamish and Kevin Hollinrake

Tuesday 18th July 2023 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

(Urgent Question): To ask the Secretary of State for Business and Trade if she will make a statement on the interim report of the Post Office Horizon IT scandal inquiry relating to compensation.

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

I thank the right hon. Member for his question and his tireless campaigning on this issue. I am also grateful to Sir Wyn Williams for his work and for publishing his interim report. We will, of course, consider that properly in the coming days and provide a formal response to the House.

Sir Wyn’s report recaps the progress made in delivering compensation. He notes our repeated commitment, which I reiterate again, that that compensation should be full and fair. He notes allegations from some lawyers that there are impediments to providing such compensation, but says that he cannot see any legal reason why we cannot deliver our commitment. He is right, and that commitment will be delivered.

Sir Wyn’s first four recommendations deal with the advisory board, of which the right hon. Gentleman is a member. As he knows, the board was established at the instigation of my Department, and its composition and remit were extended as a result of discussions between Ministers, officials, himself and the rest of the board. It has already performed a very valuable service. Notably, its last meeting made recommendations about an appeals process independent of the Post Office. We are considering that recommendation and will reply in due course.

Sir Wyn also refers to the tax treatment of compensation payments. The right hon. Member will acknowledge that when we worked with him and the board on that matter, it resulted in £26 million of additional payments in the historic shortfall scheme, and exemptions from income tax, capital gains tax and national insurance contributions. Sir Wyn also suggests that we should legislate to extend the deadline for the group litigation order compensation scheme.

As we have stated, we will not let an arbitrary date stand in the way of paying full and fair compensation to postmasters. As compensation is being delivered under the sole authority of the Appropriation Act, spending on it is limited to a two-year window that closes in August next year. The Government are determined to deliver compensation by that date. That remains perfectly possible, but challenging. If it seems likely that we will not be able to compensate everyone in time, we shall of course consider legislation, as Sir Wyn recommends. I want to deliver by that date not for some legalistic reason, but in the interests of postmasters who have waited too long for justice.

[Mr Jones]

May I start by declaring an interest, as a member of the Horizon compensation advisory board? I thank the Minister for his remarks and for the positive and constructive approach with which he has addressed this issue. I also thank Sir Wyn and the inquiry for their ongoing work. I agree with many of Sir Wyn’s recommendations. I would be interested to know exactly when they will be responded to, especially because a lot of them were in the note that the advisory board sent to the Minister at the last meeting.

The three compensation schemes have become unwieldy, but the fundamental point is that equal and fair compensation has to be paid to all the people across the three schemes. I would be interested to know from the Minister when the recommendations will be addressed, particularly on extending the remit of the advisory board. I accept what he says: our aim—and certainly his—is to get compensation to people as quickly as possible.

The elephant in the room that needs to be addressed is the continued obstructive role of the Post Office. I found it remarkable that yesterday on BBC radio, the chief executive, Nick Read, said that the “sheer scale” of the problem has

“gone above and beyond anything that anybody could realistically expect”.

That begs the question of what he has been doing for the last four years and why he has been accepting bonuses for his and his management’s role in the inquiry.

The inquiry was stalled last week because again, the Post Office failed to disclose documents to it. When is this issue going to be dealt with? It either gets dealt with, or Nick Read and the entire board have to be sacked. The Minister knows, because he has met many of the people who are waiting for compensation, that they have gone through a lot. They need justice, and they need action. Ill-conceived comments from the present chief executive of the Post Office are rubbing salt in the wounds of the victims. Either he has to go, or something has to radically change at the Post Office.

[Kevin Hollinrake]

I am grateful to the right hon. Gentleman for his work. He is right to say that there are three schemes, which might be described as suboptimal. As Sir Wyn has said on this occasion and previous occasions, we are where we find ourselves, and we must push on. That is the easiest way and the best way to get compensation for those affected.

I referred in my initial remarks to the request that the right hon. Gentleman has made for an appeal mechanism. We are considering that carefully. I think he would acknowledge that whenever he has come to me with something that he thinks we should consider, we have always done that and are keen to deliver the mechanisms that the board requires.

The delays in disclosure were unacceptable, without question, and the Post Office has apologised for that. You are only as good as your last game, and the Post Office has to up its game; there is no doubt about it. We have a governance review into earlier issues around remuneration and the metrics regarding bonuses, which were found to be completely inappropriate. We are waiting for that report, which I should receive by the end of this month. We will take that under advisement, as we do any other evidence we receive about the operation of the board of the Post Office.

Post Office Ltd: Management Culture

Debate between Lord Beamish and Kevin Hollinrake

Thursday 13th July 2023 Westminster Hall

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

It is a pleasure to speak with you in the Chair, Sir George. I thank the hon. Member for Motherwell and Wishaw (Marion Fellows) for securing today’s important debate and for her constant work in this area on the all-party parliamentary group on post offices. It is always a delight to work with her in these areas. We share her passion for the post office network and the services that it provides to communities up and down the country.

A positive management culture is paramount for the health of any organisation, so I welcome today’s debate on the culture of the Post Office. As raised by the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier), culture is critical to any organisation. As Emerson once said,

“An institution is the lengthened shadow”

of a single person, so leadership is hugely important in this context.

The Horizon scandal has had a devastating impact on those affected and on Post Office itself. It has now rightly accepted that it got things very badly wrong. I thank all right hon. and hon. Members for all the work they have done in campaigning over many years, including the hon. Member for Motherwell and Wishaw, my hon. Friend the Member for Telford (Lucy Allan) and the right hon. Member for North Durham (Mr Jones). I also thank the noble Lord Arbuthnot, who is in the Gallery, and the many other people associated with this work, including the barrister Paul Marshall, the journalists Tom Witherow and Nick Wallis, Dan Neidle and, of course, Alan Bates and the 555 people who took the matter to court. We would not be here without them, and we are at least starting to put these matters right.

When the current chief executive of Post Office, Nick Read, started his job in September 2019, he made it clear that Post Office needed to apologise for the events of the past, fully address them and, of course, compensate those who suffered detriment. A key part of that will clearly be the restoration of trust between Post Office and postmasters. That is so important, because, as I said previously in other debates, there is no post office network without postmasters.

In December 2019, the parties to the group litigation order in Bates v. Post Office Ltd took part in a mediation session and issued a joint statement confirming Post Office’s commitment to resetting its relationship with postmasters. Since then, Post Office has appointed two non-executive director postmasters, who were elected by other postmasters, to the Post Office board. This ensures that postmasters’ voices are being heard at the highest level—something that I witnessed yesterday when I attended the board meeting at the company’s offices. It is crucial that senior management is cognisant of the impact that its strategies and changes will have on those who are on the frontline of delivering services. Post Office has also appointed a current postmaster to a new director role, who leads the day-to-day relationship with postmasters.

Alongside those appointments, Post Office has looked into operational matters to improve culture and trust between senior management, staff and postmasters. Improved training packages, and the hiring of more than 100 new area managers to provide dedicated local support, are examples of positive changes. On the Government’s part, I enjoy chairing our regular working-group meetings with Post Office and the National Federation of SubPostmasters, as I did yesterday, and I find them to be a useful forum to discuss the high-level issues affecting postmasters.

On compensation, it is right to say that in order to look to the future, Post Office must first address and learn from its past mistakes so that it can rebuild trust in the business. We are determined that postmasters affected by the Horizon scandal receive the compensation they deserve, and the Government are supporting Post Office with funding to deliver that.

The shadow Minister, the hon. Member for Ellesmere Port and Neston (Justin Madders), challenged me on what the Government are doing to make sure that justice is delivered to those affected, and I am determined to make sure that we do everything possible in that regard. I am grateful to the right hon. Member for North Durham for his work on the advisory board, to which he referred. The board initially looked after just the GLO part of the scheme, but that was extended to all three schemes on the request of him and his colleagues on the board. I am delighted to see the work it is doing, and I am determined to give it what it needs to make sure that the schemes are fit for purpose and delivering outcomes as expected. Indeed, we expanded membership of the board to include, for example, Professor Moorhead, who has been a leading advocate in this area.

Although there is still work to do, good progress has been made across the different compensation schemes. For postmasters who were wrongfully convicted due to Horizon shortfalls, Post Office has to date paid out over £20.4 million in compensation. That includes initial interim payments to 81 individuals and, additionally, 65 partial settlements, top-up payments or hardship payments. Post Office has reached full and final settlement with four claimants, and will continue to process claims that are lodged as quickly as possible. The Horizon shortfall scheme, which was set up as part of the settlement in the 2019 group litigation case against Post Office, provides redress for postmasters who repaid shortfalls but were not convicted or part of the court case. Over 99% of the original claimants to the HSS have now received an offer, and the value of the offers is more than £100 million. A further £2.1 million has been offered to the 91 late claims that have been processed so far.

The hon. Member for Motherwell and Wishaw says she believes the claims have been settled at the lowest possible level. I do not accept that. The advisory board, including the right hon. Member for North Durham and the noble Lord Arbuthnot, and I attended a session with the HSS panel and the lawyers connected to that panel. It was clear to me, and I hope to other Members who attended that call, that the panel works on an inquisitorial basis, trying to identify any detriment, financial or otherwise, and to ensure compensation in full on those matters.

The group litigation order scheme is being delivered by my Department—the Department for Business and Trade—rather than the Post Office. It is always tragic to hear the many cases that relate to these issues. I have a constituent—Sam Harrison of Nawton, near Helmsley—who sadly passed away while waiting for her claim to be paid from the GLO. That is unacceptable, and we need to accelerate outstanding payments through all schemes. To date, the Department has paid out over £21 million in compensation, including through interim payments. We have received 18 claims. Across those areas, our priority is providing fair and swift compensation to those affected, so that postmasters achieve the justice they deserve. Indeed, we have made some adjustments to the scheme and to previous schemes, in terms of the tax treatment of the HSS. When the board has come to me on any matter, we have delivered on its suggestions.

[Mr Kevan Jones]

I would like to put on the record my thanks to the Minister and his predecessor, the hon. Member for Sutton and Cheam (Paul Scully), for the way in which they have approached the Horizon compensation scheme scandal. The board made some recommendations to the Minister at the last meeting. When will he be in a position to respond to those recommendations?

[Kevin Hollinrake]

I am keen to respond, as the right hon. Member knows, on a potential appeals process. I am looking at this carefully, and we will continue to engage on that, but we want to ensure that everything is fair and that people are confident in the process for getting the compensation they deserve. We want to ensure that the compensation is delivered on time. We have an August 2024 deadline, as the hon. Member for Motherwell and Wishaw mentioned. We are keen to deliver on that deadline and are looking again at further ways to expedite payments to all those still waiting.

On governance, Post Office Ltd is a public corporation, and as such its board retains responsibility for the strategic direction of the company.

Post Office: Horizon Compensation

Debate between Lord Beamish and Kevin Hollinrake

Thursday 23rd March 2023 Commons Chamber

[Kevin Hollinrake]

I thank my hon. Friend for his work; he is a long-standing campaigner on this issue. He is right to point to the work of Second Sight, which was pretty critical to our getting to this point. The work of Members across the House in drawing attention to these issues shows Parliament at its best and what it is capable of doing, and I pay tribute to all Members of this place and of the Lords who have done that.

As I said, it took too long initially for the Post Office to hold its hands up and say that things were wrong. It had to be held to account in a court, which resulted in the settlement in December 2019. I agree that we need this as quickly as possible. It is also important that we get these schemes right. We want to make sure we get the compensation right the first time, and that is why it has taken a little bit of time, but we are in a much better place now. We are keen to get these payments out by August 2024, and ideally a lot quicker than that.

[Mr Kevan Jones (North Durham) (Lab)]

I declare an interest, as a member of the GLO advisory board. Today would not have happened without Alan Bates and the Justice for Subpostmasters Alliance’s tireless campaign over many years. I pay tribute to the hon. Member for Sutton and Cheam (Paul Scully) and the Minister for the way in which they have approached this scheme. Now the test is to get money to these claimants as quickly as possible.

I thank the Minister for agreeing to the advisory board’s request to extend our remit to cover both the historical shortfall and the overturned conviction schemes, but he knows what I am going to say now. There must be equalisation of the schemes, to ensure that individuals under the historical shortfall scheme are not taxed or liable to bankruptcy clawback. He will not be surprised to know that that will be one of our first requests at the first meeting.

I thank the Minister for his work. This is a historic step forward, but there is still a lot of distrust, and the postmasters and victims will not be happy until those who were responsible for this scandal are held to account in a court of law. That obviously will come after the public inquiry, but their day of reckoning needs to come.

[Kevin Hollinrake]

I am grateful to the right hon. Gentleman for his work, including on the advisory board, which is much appreciated. He is right to reference Alan Bates, as I did. I spoke to Alan this morning, and he is pleased with the steps we have taken, as I think the right hon. Gentleman is, but the proof of the pudding is in the tasting. We need to make sure these schemes work properly. When he and Lord Arbuthnot asked to expand the board’s remit to the other two schemes, I was pleased to support that wish. He is right to point to tax and bankruptcy. We need to make sure these people are treated fairly across all three schemes. We will leave no stone unturned—and I know he will not either—in making sure that happens.

Afghanistan

Debate between Lord Beamish and Kevin Hollinrake

Wednesday 18th August 2021 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

The Prime Minister said that the fall of the Afghan regime to the Taliban was inevitable. The Foreign Secretary said that he was shocked by the speed at which it occurred. If the Foreign Secretary is correct, I agree with the right hon. Member for Dundee East (Stewart Hosie) that a huge, spectacular failure in intelligence needs to be examined.

The shambolic collapse we have seen, predicted by the Prime Minister, was not inevitable, but I do agree with the right hon. Members for Chingford and Woodford Green (Sir Iain Duncan Smith) and for North Shropshire (Mr Paterson), who said that that when we withdrew air, logistic and intelligence support, it was inevitable. I raised this with the Prime Minister on 8 July, when he said:

“It is not open…to the Taliban to enforce a military solution, but neither is it open to us”.—[Official Report, 8 July 2021; Vol. 698, c. 1117.]

How wrong he was.

The Government talk in rhetoric and slogans. Global Britain has been shown to be the hollow slogan that it is.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

The right hon. Gentleman talks about the statement on 8 July. Does he accept that this Government’s decision to withdraw troops from Afghanistan was not opposed in that debate by the Scottish National party or the Opposition? Indeed, it was welcomed by the shadow Foreign Secretary. Is it not right to put that on record? This was effectively a decision of the majority of the House.

[Mr Jones]

Yes, but the hon. Gentleman’s party is in government. It is the Government who take decisions, and the categorical decision to take air power out was a fundamental mistake.

We also need to say loud and clear that we are in a country that is proud of our tradition of allowing sanctuary for those fleeing violence and persecution. It is vital that we step up to the mark and give sanctuary to all those who have helped us throughout our time in Afghanistan.

Afghanistan now faces an uncertain future and a humanitarian crisis. As the right hon. Member for Maidenhead (Mrs May) said, there is a potential security crisis for us if terrorism is not thwarted there in the future. The clear question to be asked is, was it all worth it? I first visited Afghanistan in 2003, and up until 2010 I visited on six occasions. I went right up the north into Mazar-i-Sharif and right down to Garmsir on the fishhook near the Pakistan border. I saw real progress. Girls’ education has been talked about, but there was education for boys as well. There were schools, hospitals and economic development.

Did we make mistakes? Yes, we did. Corruption was endemic. I know that it was raised each of the three times I met President Karzai, and he just batted it aside. It was endemic and toxic for that regime.

Where do we go now? The Foreign Secretary is saying that the options are sanctions on the Taliban or restricting overseas aid. I am sorry, but that is naive and stupid. We need to engage with regional powers. I accept what my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) said about Pakistan. We need to engage with Pakistan, but we also need to be ruthless, because it has been a harbourer of the Taliban for the past 20 years. Will we have to take unpalatable decisions and speak to people we have not spoken to before? Yes, we will, as my hon. Friend the Member for Barnsley Central (Dan Jarvis) said.

I would like to finish by saying this. I was a Minister in the Ministry of Defence. I had the privilege of working with some great and fantastic people who died in Afghanistan, and with others who were maimed in Afghanistan. They are the finest people we have in this country. We cannot change the past, but we can dictate the future, and that future has to be one that ensures that the people of Afghanistan have a future. That is the debt we have to them. It is also the debt we have to those who lost their lives and those who sacrificed so much on our behalf.

Horizon Settlement: Future Governance of Post Office Ltd

Debate between Lord Beamish and Kevin Hollinrake

Thursday 19th March 2020 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

I beg to move,

That this House has considered Horizon settlement and future governance of Post Office Ltd.

Innocent people jailed; individuals having their good name and livelihoods taken away from them; the full use of the state and its finances to persecute individuals. Those are all characteristics of a totalitarian or police state. But that is exactly what we have seen in the 21st century in the way the Government and the Post Office have dealt with sub-postmasters and their use of the Horizon system. The Horizon system was the biggest non-military IT project in Europe. It cost over £1 billion to install and affected 18,000 post offices throughout the UK.

Before I go on, I would like to pay tribute to some individuals who I have been working long and hard with on this campaign. The first is the hon. Member for North West Leicestershire (Andrew Bridgen), who cannot be here today because, unfortunately, a family member is ill and he has had to self-isolate. He has been with me from the start in trying to get justice for sub-postmasters, and I will refer to some of his work later. He would like to have been here and sends his apologies; that he is not here does not mean that he is not interested in the outcome. I also thank James Arbuthnot, the former Member for North East Hampshire, who, despite being moved to God’s waiting room further along the corridor, has still consistently pressed the case for justice for sub-postmasters. I pay tribute to the work that he has done in the past and is doing now.

I want to mention two other individuals. Alan Bates is the lead claimant in the class action. Alan has been a stalwart and stuck by his principles—knowing, as he said, that “I am right and I am going to make sure we get the truth out.” The other person is someone who has very helpfully shone a spotlight on the issue, and has spent many hours sitting through long court cases: Nick Wallis is a journalist who has kept this story in the public domain. Alan and Nick both deserve credit for their continued actions now and their work in the past.

I first came to be involved in the issue when a constituent came to see me in my surgery. That constituent was Tom Brown. Tom, like many other thousands of sub-postmasters, was a hard-working and well-respected individual. He had won awards from the Post Office for fighting off an armed robber in his post office, but because of the introduction of the Horizon system, he was accused of stealing £84,000 from the Post Office. Even though he said and demonstrated that that was not the case, the Post Office took him to court, and he went through the agony of being publicly shamed in his local community—we must remember that a lot of these individuals are the stalwarts of their local communities.

Tom went to Newcastle Crown court, and on the day of the trial the Post Office withdrew the case, but the damage had already been done. His good name had been ruined, and he had lost—because he had had to go bankrupt—in excess of nearly half a million pounds in the form of his business, the bungalow that he had bought for his retirement and some investment properties. He now lives with his son in social housing in South Stanley. The man who should have had a nice retirement, and who was well respected in his community, has been completely ruined and is destitute. Despite that—he came to see me last week—he is an individual who still has integrity, because he has always insisted that he is innocent of what he was accused of, and he has not been alone.  Despite that—he came to see me last week— he is an individual who still has integrity, because he has always insisted that he is innocent of what he was accused of, and he has not been alone. The estimate from the class action that has been taken is 555, and there are many others, some unfortunately who have died since the case was taken forward.

The scandal of this—what makes me so angry and why I have persistently hung on to the campaign—is that the Post Office knew all along that the Horizon system was flawed.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I congratulate the right hon. Gentleman on securing this important debate. Is not the other scandal in this that the courts time and again failed the victims? In the prosecutions that were taken forward by the Post Office, the courts found in favour of the Post Office, despite it being unable to properly evidence its case. It is absolutely wrong. We must stand up for David versus Goliath in our courts.

[Mr Jones]

I will come back to that, which is something that I think my hon. Friend the Member for Kingston upon Hull East (Karl Turner) will refer to in his contribution.

The board minutes from 1999 show that the Post Office knew there were bugs in the system and software problems. It denied all the way through that, for example, the amounts that sub-postmasters inputted could be changed. That was just not true. It could be remotely done, and the hon. Member for North West Leicestershire and his constituent Mr Rudkin, who visited the headquarters where the data was being stored, proved that. In classic style, when he raised that the Post Office denied that he had ever visited the data centre in the first place, until he proved that he had. It was just one cover-up after another. The denial culture in the Post Office was described by Judge Fraser, in what I thought was a very good his judgment, as

“the 21st century equivalent of maintaining that the earth is flat”,

because the evidence was there all the way through. There is no way that anyone who took an objective look at the system, in terms of the Post Office or Fujitsu, the contractor, could argue that it was perfect.

Local Government Finance

Debate between Lord Beamish and Kevin Hollinrake

Wednesday 5th February 2020 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

My hon. Friend the Member for Sheffield South East (Mr Betts) highlighted what has been happening over the past 10 years, which is that local government as a sector has taken the biggest cuts. Added to that, Departments might have to find another 5%, and no matter what the Minister says in his reply about levelling up and making promises to northern councils, it will be very difficult, because this Government and the coalition Government had a clear policy to move funding from more deprived to more affluent areas.

Interestingly, the Minister said in reply to an intervention by my hon. Friend the Member for West Ham (Ms Brown) that he was here because he wanted to make the point that he was the Northern Powerhouse Minister. With one sole exception, the hon. Member for Keighley (Robbie Moore) has been the only new Conservative northern MP who has sat through this debate. We had a brief interlude from the hon. Member for Bishop Auckland (Dehenna Davison), who stayed for about 10 minutes, and I did spot briefly the hon. Member for Darlington (Peter Gibson). If this new army—supposedly—of new Conservative MPs want to argue for their region, they should be doing it in here and they are not setting a very good example. I will work with them to argue why the Government got it wrong on local government finances over the past 10 years.

It is not just me saying that: the National Audit Office and the Centre for Cities have clearly demonstrated that money has moved from northern councils—the more deprived areas—to the more leafy suburbs in the south-east. That has not been done by accident; it has been deliberate design and policy. If the Minister levels up the system and makes it fair, I will fully support that, but that would be very unpopular among some of his colleagues in the south-east.

We have a situation now, after the last 10 years, where County Durham has lost £224 million in grant. Core spending per dwelling in County Durham stands at £1,727, whereas the figure for Surrey is £2,004, so it is clear that deprived areas such as County Durham are getting less core spending, and that has been deliberately designed by this Government.

The cover for that is the so-called “fairer funding formula”. That is complete nonsense, because it is fundamentally flawed in two respects and it is a disguise to use the word “fairer”. It starts from the premise that the needs of every single area and council are the same, when that is clearly not the case; I will give examples later. As my hon. Friend the Member for Sheffield South East highlighted, it also works on the basis that each council has the ability to raise local finance on an equal basis; I am sorry, but they don’t.

[Kevin Hollinrake]

rose—

[Mr Jones]

I will give way in a minute.

They don’t, because, for example, in County Durham over 50% of our properties are in band A, so, no matter how much we put up the council tax, we will not—unlike more affluent areas, with larger numbers of Ds, Cs and even Gs in some cases—be able to bridge the gap that has resulted from the withdrawal of core funding.

[Mr Jones]

I give way first to my hon. Friend, as I always call him—the hon. Member for Thirsk and Malton (Kevin Hollinrake).

[Kevin Hollinrake]

I am grateful. The right hon. Gentleman seems to imply that somehow shire counties are getting a better deal from central Government in terms of spending allocation than metropolitan areas, but that is absolutely the reverse of the truth. The reality is that the shire counties get less than half as much as the metropolitan areas allocated from central funds, and that is why our council tax is, in some areas, twice as much.

[Mr Jones]

Yes, but I have to say that in the hon. Gentleman’s area, North Yorkshire, the ability to raise council taxes is a lot better than in County Durham and others. I am not talking about a metropolitan council; I am talking about County Durham. In Surrey—Woking—and other areas in the south, the core spending has not been reduced at all. So the hon. Gentleman should be shouting from the rooftops about the unfairness of the current formula.

The other issue—

Rail Services: North-East England

Debate between Lord Beamish and Kevin Hollinrake

Tuesday 4th February 2020 Commons Chamber

[Mr Jones]

My hon. Friend makes a good point. We have seen a lot of promises recently about investment in transport infrastructure in the north, but there is a combination of two things here. It is about cash, but it is also about competence in running the network. Before we start opening up new lines, we need to ensure that the existing ones work properly. The franchising system in this country has clearly failed. His constituency, like mine, is next to two large conurbations, Tyneside and Teesside, and his constituents should be able to travel there easily. Again, if it was in the south-east of England, they would be able to do so.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I thank the hon. Member for securing this important debate. I agree that the TransPennine service has been dire. It was already the second-worst performing franchise in the country, but in December it got much worse. Only half the trains were on time, and 33% were either significantly late or cancelled. Does he agree that there should be a more punitive system of fines to focus the attention of the management and to ensure that these services run on time?

[Mr Jones]

I will come on to my response to TransPennine, but the underlying problem is how the timetable was drawn up. Durham County Council clearly indicated what it wanted to see at Chester-le-Street, a growing commuter town, only to find that services were taken away. When I wrote to the Transport Minister, I received a letter saying, “Well, you’ve got more stopping services.” We have, but not at the times when people actually want to travel. For example, the popular 7.17 am train was taken off the timetable and the equally popular 5.15 pm train southbound from Newcastle was moved over half an hour later. It is no good arguing that more trains will be stopping if they stop at times when people do not want to travel. It is a fundamental flaw. Frankly, Transport for the North should be renamed “Transport for Leeds, Sheffield, Manchester and Liverpool” because it clearly does not seriously consider representations from anywhere north of York.

The ongoing effects have had an economic impact, as the hon. Member for Strangford (Jim Shannon) mentioned. This is not just about the frustration of individuals who find that trains have been cancelled, because there is an equal economic impact. As I said in my previous debate, people have had to give up jobs or not accept promotions because they cannot get into work, and families who want to come back to look after their children find it difficult to do so. That is just not acceptable.

I would like Transport for the North to tell me about another town like Chester-le-Street, where 30,000 people live, that has such a poor service and is totally disregarded. The facts speak for themselves, because train usage at Chester-le-Street is actually declining—it dropped by more than 9% between 2017 and 2019—and my hon. Friend the Member for Easington (Grahame Morris) saw usage at Seaham drop by 2.5%. There is this great mantra that we should be getting people out of cars and on to public transport, but the mess with the operation of the timetable is driving people off the railways, and that cannot be good for congestion in Tyneside and Teesside.

Turning to the point raised by the hon. Member for Thirsk and Malton (Kevin Hollinrake), I have to say that TransPennine is appalling. I hate using the term, but it is not fit for purpose. It could not run the proverbial in a brewery if it was given the instructions. It does not care about passengers. There is no information when services are cancelled. People turn up and they are told the train is late, and then it is just cancelled, leaving people to their own devices. No information or alternative buses are provided. The situation is not down to any lack of trying, because I have raised the matter directly with TransPennine officials, including at a public meeting I held with them two years ago where they said they would provide information, but they just do not care. Their attitude stinks.

I thought April fools’ day had come early last week when TransPennine put out its stakeholder newsletter. I do not know whether any other colleagues received it, but it included a big photograph showing how proud it was to win rail operator of the year at the business travel awards. All I can say is that I would hate to see what the competition was if TransPennine won, and it is quite clear that the judges did not speak to many of my constituents or those of many colleagues. It was a further insult when TransPennine announced on social media that from this week, it is going to stop people buying tickets on its trains, saying that if people get on without a ticket, they will be fined.

Since the ticket office was closed, Chester-le-Street station only has ticket machines on the southbound platform, and they are often not working, but people getting on the train without a ticket will be fined.

In the last week, two constituents have complained to me that they have bought tickets on trains, but have been treated in a threatening manner and told that in future they will be fined. I am sorry, but if the company cannot maintain a network and provide the service, it is an insult to my constituents, and other travellers, to make such threats. My constituents do not want threats. They want trains to turn up on time and, in some cases, to turn up at all.

The hon. Member for Thirsk and Malton asked what the answer is. I have to say that TransPennine needs the franchise taken away. Northern has had its franchise taken away in the last few weeks, and we need to follow. Ironically, at Chester-le-Street, the trains that turn up on time have actually been Northern, which I know is not the experience of other colleagues. If Northern has had the franchise removed, so should TransPennine. What will happen to the investment that Norther earmarked for improvements at Chester-le-Street station, because there is clearly some doubt about what will happen now? TransPennine has been given enough chances. As I said earlier, its attitude stinks. It is not customer-focused and it is having a detrimental effect on many of my constituents.

Finally, I want to raise a broader issue. I know that in the near future—perhaps this week—the Government will make a decision on HS2. Personally, I have never been a great fan. I do not think it will affect many of my constituents, apart from swallowing large amounts of public investment over the next decades, but there is an issue that the Government could address now. We have had various promises thrown around about opening the Beeching closure lines and others in the past few weeks, but if HS2 is to benefit the north-east—look past York, because there is more to the north than York and Leeds—what is needed is the upgrade of the east coast main line. Without that, HS2, when it finally does arrive—if it ever does—will not be able to increase capacity from the north of York to further north.