Horizon Redress and Post Office Update

Daisy Cooper Excerpts

Tuesday 8th April 2025 Commons Chamber

[Madam Deputy Speaker (Judith Cummins)]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

We Liberal Democrats welcome the progress that the Government have made, but the redress payment processes are still too slow. First, victims claiming under the Horizon shortfall scheme continue to face significant up-front complexity without legal advice. I welcome the Minister’s announcement that the Government will be writing to that group, but could he please outline a time by which they will receive those letters?

Secondly, the Minister announced that any compensation will not be subject to a penny of income tax, capital gains tax, inheritance tax or other taxes. Could he confirm whether that will require primary legislation? If so, will it be limited to this scandal or apply to other scandals as well? I am thinking in particular of the cross-party campaign on Philomena’s law because some victims of that scandal are struggling to access their compensation.

Thirdly, this scandal has involved many individuals working at the Post Office, Fujitsu and others. The Government have committed to bringing forward a statutory duty of candour; they initially said they would do so by 15 April, which is the 36th anniversary of the Hillsborough disaster. At business questions last week, the Leader of the House cast doubt on whether that deadline would be met, because the Government say they will take whatever time is necessary to get the issue right. We Liberal Democrats want the drafting to be done correctly, but is there any update on when we can expect the statutory duty to be brought forward?

Fourthly, the evidence of whistleblowers at Fujitsu was crucial in exposing the lies about Horizon. We Liberal Democrats have repeatedly called for an office of the whistleblower, and we have put down amendments to the Employment Rights Bill to strengthen protections for whistleblowers. Would the Government work with us on that issue?

Finally, I was surprised to see the announcement about directly managed post offices. The Minister will be aware that a cross-party group of Members has been infuriated by the poor communication from Post Office bosses on this process. I recognise that today’s announcement states that the Post Office will move to a fully franchised network, but that still provides no guarantee about the range or quality of services that will be available, no guarantee on the definition of “nearby”, no guarantee that there will not be a break in service and no guarantee that those post offices will not eventually be closed if the franchises do not work. Will the Minister please set out the next stages? Those will affect my constituents in St Albans and many constituents represented by Members here.

[Gareth Thomas]

I am grateful to the hon. Lady. She is absolutely right to reflect the view of the whole House that there is still much more to do on compensation. We as the Government are very clear about that ourselves, and we are working at pace to try to step up even further the rate at which compensation payments are made. We think that, in just the first nine months of this Government, we have made significant progress, increasing by three and a half times the amount of compensation that has been paid out. But I completely accept that there is more to do.

We think that the launch of the Horizon shortfall scheme appeals process will help to address a number of cases in the HSS where sub-postmasters are concerned about the offers they have had. The hon. Lady asked me when letters would be going out. I set out the broad timescale in my statement, and I simply say to her again—shortly. We want to get this up and running as quickly as we can.

The hon. Lady asked me whether new legislation would be required to implement the commitments on tax that I set out. No, it will not be required. On the issue of the duty of candour, I do not have anything to add to what my right hon. Friend the Leader of the House said. However, the hon. Lady’s question is an opportunity to underline that we expect a number of significant issues to arise from Sir Wyn Williams’s inquiry, and we as the Government—and, I am sure, the whole House—will want to reflect on the conclusions and recommendations that he comes up with.

The hon. Lady mentioned the issues about the decision to franchise the remaining directly managed branches. As I set out in my statement, I have heard the concerns from across the House—they were particularly significant on the Labour Benches, but I recognise those from the Opposition side as well—about the impact of losing post office services in the communities where those directly managed parties are. That is why we have made it clear to the Post Office that franchised post office services have to remain in those communities.

We expect the Post Office to work from the starting point of those services being what is called a mains franchise—a franchise that, as well as providing the more traditional post office services such as stamps and parcels, will also provide Government services such as passports and driving licences: the equivalent of what is available in those branches at the moment. I expect that, in the first instance, those franchised services will continue to operate in exactly the same place where they do at the moment, before decisions are taken about where they should be located in the slightly longer term.

The hon. Lady asked me what guarantee there is that services will continue to be provided in that space. She will know that access criteria have already been published that commit the Government to provide 11,500 post offices. The decision on directly managed branches does not change those criteria, and the Post Office is committed to continuing to provide a service in those communities. I would also expect the Post Office to talk to local stakeholders, including Members of this House, about the continued operation of post office services in their communities.