Post Office and Horizon Software

Duncan Baker Excerpts

Thursday 5th March 2020 Westminster Hall

[Duncan Baker (North Norfolk) (Con)]

I thank my hon. Friend the Member for Telford (Lucy Allan) for bringing this debate forward. I declare that I was a sub-postmaster for two post offices before I became an MP. I have resigned as a director of the company that runs those post offices. I have no interests anymore and none of the staff I employed were affected by this issue. My only interest is that of my constituents who are affected.

I wonder if anyone else in this room has been a sub-postmaster. It is important because, having done the job, although admittedly not every day, I have used the Horizon system. I have heard about and seen at first hand the experience of making up the losses, and I thoroughly empathise with the utterly awful situation that hundreds of innocent victims have found themselves in.

Many of the individuals who worked tirelessly running post offices were as honest and trustworthy as the day is long. They have had their careers and livelihoods wrecked. Indeed, as we have heard, people have been made bankrupt because of a flawed system that accused them of theft. As we all here agree, that is a true miscarriage of justice. People have lost their life savings; even worse than that, young women have been jailed and have struggled to rebuild their lives because of a criminal record.

I have constituents in North Norfolk who have gone through such a trauma. Their story will be similar to more than 500 other cases, each as harrowing and as appalling. I do not want to reveal the names of my constituents because they still struggle to talk about these issues.

Accused of stealing thousands, suspended from their role and then charged, one of my constituents found themselves in the Crown court and was offered a deal to plead guilty to false accounting to enable the theft charges to be dropped. Why would they accept that? This lady was a grandmother and she told me that she was not prepared to look her grandchildren in the eye and say that granny was going to jail. That is not right—we all know that. In my constituent’s case, the amount was reduced to £12,000. Interest and legal costs of a further £9,000 meant a debt of £21,000. That is lower than some of the costs we have heard about, but we should just imagine being levelled with £21,000 to pay, when it is not our fault.

[Andrew Bridgen]

I appreciate the experience that my hon. Friend brings to this debate. Through our investigations years ago, we discovered that the Horizon system had a suspense account in it. It was a flawless system, yet it had a suspense account, where unallocated funds ended up throughout the whole system. The surplus—and it was a surplus—ran to hundreds of thousands of pounds a year, and after three years it was returned to the profit and loss account.

[Steve McCabe (in the Chair)]

Order. Come on, Mr Bridgen. I call Duncan Baker.

[Duncan Baker]

To date, my constituent has had no money back, like many others. They have had no indication of when the money is coming back and we are sceptical about how much they will get back.

Financial compensation is just one issue. The mental strain and loss of earnings should also be taken extremely seriously. There is the humiliation of walking down the street and being accused of stealing, having done nothing wrong. We are a fair society and it is our responsibility to ensure that those people are paid back in full.

I totally agree that the £58 million that was put to one side will no doubt be hoovered up by lawyers. What will be left for the real victims? That is not right. The Government must intervene and force the Post Office to make good the losses that those postmasters have suffered, in full. The board of the Post Office is accountable for this fiasco. Action must be taken against it. The issue is most definitely worthy of a public inquiry to uncover the extent of the wrongdoing that has occurred. We need transparency and a fair analysis.

As far as I am concerned, the Post Office knew that Horizon had bugs, errors and defects. It was told about that and chose to ignore it. Multiple accounts of losses should ring alarm bells in any organisation, but the Post Office was more concerned with its reputation and so individuals were accused of stealing, false accounting and fraud. Their names have to be cleared. The criminal records of those jailed must be overturned.

My constituents, who cannot bring themselves to talk about this, still feel the shame of being accused and nothing will repair the damage of losing their livelihood. However, I want to say, from my personal experience of being a sub-postmaster, that the post office is an invaluable place on our dwindling high streets. It is a hub for people to go to that offers incredible services. Post office workers do an incredible job. It is hard; there are many transactions to master. They do a superb job. The people accused should be properly recompensed, supported and entirely vindicated.