Postmasters with Overturned Convictions: Settlement Funds

Lord Falconer of Thoroton Excerpts

Wednesday 15th December 2021 Lords Chamber

[Lord Callanan (Con)]

Before I answer the noble Lord’s question, I again pay tribute to the work that he has done over many years on this scandal to make sure that the world knows the truth about what took place. He makes a valid comment about the similarity of moral principles between the various cases. I can go no further than to confirm what the Minister said in another place. I will quote it to him in full:

“the 555 sub-postmasters who were part of the High Court case performed a massive public service by exposing the wrongdoings within the Post Office, and I recognise the deep frustration at the fact that because they agreed that the settlement with the Post Office would be a full and final one, they do not qualify for these compensation schemes. I have met some of those people and, as I said, I will continue to work on what more we can do.”

[Lord Falconer of Thoroton (Lab)]

I, like everyone else, pay tribute to the noble Lord, Lord Arbuthnot, for the work he has done. I also acknowledge, as he has done, that this is significant, because it means that central government will fund all the compensation.

I welcome what the noble Lord, Lord Callanan, said in answer to one of the questions from the Front Benches. To paraphrase, he said, “We know there was a terrible scandal. What we’ve got to do now is provide adequate compensation for those who were affected.” We all understand what the scandal was; Mr Justice Fraser in the High Court has laid it out. It involved the Post Office, despite senior management knowing that there were problems with the IT, which was probably identifying wrong shortfalls, nevertheless allowing sub-postmasters to be charged in millions of pounds for those shortfalls, in some cases allowing them to be prosecuted and in others allowing those who were prosecuted to be sent to jail. With all the people who suffered in this way, the Post Office, knowing that the IT system was unreliable—that is what Mr Justice Fraser said—nevertheless allowed them to be prosecuted or sued and in some cases bankrupted. They are all entitled to compensation.

There are three categories. First, there are those who went to prison or were convicted; some of them may not have gone to prison. They must be compensated —there is no doubt about that. Secondly, there are those not covered by the settlement—that is, people other than the 555. Can the noble Lord, Lord Callanan, confirm that they will be compensated? There is no other basis—no possible distinction that can be drawn with them—and there is no full and final settlement argument in respect of them. Thirdly, there is the group of people who were party to the settlement. Because he is well informed on this, the noble Lord will know that £56 million was recovered in the settlement and £46 million of that went on costs—he is nodding because he is clever and knows everything. That left £11 million for 550 sub-postmasters, whose average loss was £700,000. They were given £20,000—that is all they got. Surely, if we are keen that they be fairly compensated, that third category should also be compensated. Can the noble Lord deal with each of the three categories I have identified?

[Lord Callanan (Con)]

I agree substantively with many of the points that the noble and learned Lord made. He is tempting me to comment on the lawyers of his profession who took part in funding the case of the 555 members and the amount that went on legal fees, which perhaps I should not do in this House. I sympathise greatly with many of the points he made. Perhaps I would go even further and say that even when the Post Office knew about many of these problems, it appears it then attempted to cover it up. However, these facts will emerge in the inquiry that is taking place. The judge who is leading it is doing extremely well and is progressing with exposing that injustice.

Those outside of the 555 settlement are able to secure compensation through the historical shortfall scheme, which is the other one I mentioned in my response to the noble Lord, Lord McNicol. On the third category, Paul Scully in the other place—I quoted his words earlier—certainly went further than the Government have gone before on those points, and he has promised to work with those who were affected.