(7 months ago)
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I agree with the hon. Gentleman that concussion substitution would be a sensible measure. In Scotland, I believe there is a campaign for rugby called, “If in doubt, sit them out”, which recognises the danger of concussion injuries and allows a pause in play. Often the incentive within professional sport is to keep people playing as long as possible, and often the players want that themselves. However, there must be proper safety standards so that the right decision is made and the incident does not lead to lasting injury and trauma.
In the United States of America, the recognition of CTE as an injury caused by playing professional sport, particularly American football, is well recognised. The National Football League is providing hundreds of millions of dollars of support for players who are diagnosed as having CTE. There is recognition of the link between head injury and playing sport, and people are properly supported and compensated.
There are two challenges that we have to look at. First, how can we prevent unnecessary and lasting injury as a consequence of head and brain injuries in football and other sports? Secondly, how do we support people who, late in life, are suffering as a consequence of the injuries they sustained during their playing career? The question of compensation is one that families in particular have raised. While a £1 million fund has been created by the Premier League, administered by the Professional Football Association, the concern is that there is no guarantee beyond the first year of its operation, which we are still in, that the fund will continue—although we hope that it will. It needs to have proper resources and to be properly accessible to families.
I spoke recently to John Stiles, the son of former England footballer Nobby Stiles, who made it clear to me that in his father’s case, his care costs per year were over £100,000, and yet the cap for funding from the current fund is £60,000 a year. That would not have been enough. In that case, Nobby Stiles decided to sell his medals, including his World cup-winning medal, which helped pay for his retirement and his costs. However, not everyone is in that position. Many other footballers and their families can be in a position where they are required to sell the family home, although they were told that would not be the case when the fund was created. Some former players and their families have had to sell their homes.
Last week I raised on the Floor of the House the point about funding, because Chris Sutton, the former Celtic, Chelsea, Blackburn Rovers and—more importantly, being in Norfolk—Norwich City legend, is my constituent. Currently, support is in place from the PFA and the Premier League’s brain health fund, which has already paid out thousands to help families. That is positive, but a proper registered charity would be the way forward to ensure that the funding is in place. Does my hon. Friend think the Minister could help with putting the proper vehicle in place?
I am sure that the Minister has heard the point my hon. Friend makes. I think the Minister’s convening power could be extremely helpful in this case. There needs to be a properly resourced fund that football pays into. There is enough money in football to provide compensation for players who clearly need it.
The cap on the fund means that it will not cover some care costs; it would not have done so in the case of Nobby Stiles, had it existed at that time. However, there have been other deaths of former players recently, such as Chris Nicholl, a former player for Aston Villa and Southampton, who died without his family receiving a penny of funding. Similarly, John McNamee, a former Newcastle player, died as a consequence of CTE and his family had to sell the family home to cover care costs. Real concerns are being raised by the families that, limited though these funds are, they are not universally accessible, and there is no guarantee they will exist in the future.
(8 months ago)
Commons ChamberI hope the Secretary of State will not take this amiss and will understand that I mean no criticism of her or her Minister of State, or indeed his predecessor, my hon. Friend the Member for Sutton and Cheam (Paul Scully), when I say that the Bill represents the best of a bad job. Everybody has said it already; there is a difficult trade-off between natural justice and a fast, low-stress solution for the postmasters. That is what this Bill attempts to achieve.
That being said, it is not the way I would have done it. It is not what I would have proposed. The courts should and could have considered all the cases in which the convictions were based on Horizon evidence in one set of proceedings. I took senior legal advice on this; it would have been perfectly possible to take three or more former Supreme Court justices out of retirement, give them a courtroom and task them to deal with this in three months. They could have bracketed very similar cases together—there would have been hundreds in those categories—and then they could have focused on the ones that were really difficult. Regrettably, it is rumoured that the judiciary itself rebuffed that course of action, which I think was unwise and plain wrong. As the right hon. Member for North Durham (Mr Jones) pointed out, the judiciary has a responsibility, too. That is why we have gone this route, and I have every sympathy with what Ministers are trying to do.
Even so, the Bill still risks lumping the genuinely innocent majority with a very small potentially guilty minority. Each difficult case could have been dealt with on its individual merits rather than abandoning due process in the rush to bring this disgraceful episode to a close. We got into this situation by failing to follow proper processes, and I am wary that the Government, almost by default, are again failing to follow proper process to extricate themselves from this historic mess.
Despite my misgivings, I will not stand in the way of the Bill, because it will serve the vast majority of postmasters to secure justice for them. For that reason, I will support the Bill. However, that is not to say that the legislation will not continue to create problems of its own. I recommend that Members read some of the early reports before Report stage. The BAE Systems Detica report, which everyone should read, is a six-month review of the Post Office’s fraud and non-compliance issues in 2013. It paints a picture of complete chaos in the Post Office’s accounting systems—not just Horizon but all the accounting systems. Over a decade ago it was known that:
“Post Office systems are not fit for purpose in a modern retail and financial environment”.
Note that it refers to “systems”—plural—not just Horizon. The report goes on to say that ATM—cashpoint—accounting was clearly flawed and that
“removing the ATM reduces the risk of SPMR being suspended”.
By SPMR the report means sub-postmasters, and I am afraid that suspended means persecuted, as that was outcome. That was not Horizon related.
That matters because dozens have come forward to raise concerns over a second IT system used by the Post Office, called Capture. Again, documents show that Capture was known by the Post Office to have issues early on. The culture of denial in the Post Office over the decades is truly extraordinary. The Bill will exclude people who have already had their appeal cases heard and rejected. Those rejections may well have occurred because the evidence that the appeals were based on was not Horizon but some other failure of the accounting systems. We must be careful not to give up once we pass the Bill, but to see if we can also absolve people who are not guilty because of the wholesale chaos that existed.
I give way to probably the best-informed man in the House on this matter,.
My right hon. Friend makes a good point: the Post Office main accounts would have had debtors saying that they were owed money—
Order. Will the hon. Member please face the Chamber, so that the whole House can hear him?
My apologies. The debtors would have said that those innocent sub-postmasters owed the Post Office corporate accounts what we now know to be tens of millions of pounds. But they were wrong—that was fictious and they were not owed that money. Will we ever get to the bottom of that and restate the Post Office’s accounts, which must have been materially wrong year after year throughout that period from 2010?
My hon. Friend has more experience of this issue than anyone, and he reinforces my point. Frankly, if I had a magic wand I would force the Post Office to re-audit every set of accounts for the last 20 years and give back the money, but that will not happen: it would drag on forever, and we know the stress that it is causing postmasters even today. My worry is that we may feel at the end of this process that we have solved the problem, but there will be some—perhaps only dozens or hundreds, not thousands—who will be left not absolved or exonerated, but who deserve to be. That is the risk of this approach.
It is a great honour to follow the right hon. Member for North Durham (Mr Jones) and that poignant ending, with which we all empathise. He has done an enormous amount get us to this point, and I thank him for it. There is no doubt that today is a very good day. It has been brought about by the Secretary of State, Ministers past and present—they are not show ponies at all—the Prime Minister, particularly through his actions at the beginning of this year, and the chair of the APPG, the hon. Member for Motherwell and Wishaw (Marion Fellows). I have worked with her many times, and I thank her for all her work.
All those people must take credit for where we are, but it has taken an awfully long time. The Minister was right that an awful lot of work has gone on behind the scenes to get to this moment. Equally, I have total empathy with the comments I receive from members of the public that it should not have taken the turbocharging of an ITV drama to put right this scandal when people across the United Kingdom knew that the situation was utterly wrong. I sometimes wish that there was as much palpable anger in our communities about other scandals as there is about what has happened to sub-postmasters, so that we could fix some of those problems.
Let us not be too critical, however. We should applaud today’s lifting of the barriers, by quashing convictions, to speed up the compensation that is due to people. As has rightly been said across the House, the judiciary will raise concerns. That is only to be expected, but I conceptualise this as an unprecedented situation that requires an unprecedented solution. The odd conviction that was warranted may slip through the net, but this has been going on for more than 15 years. As has also been said, we must not let perfection be the enemy of the good; that sums up the whole predicament and issue fairly well.
Being a new MP in this place—albeit not such a new MP any more—and being able, by quite some accident, to talk about the matter with a degree of personal feeling has been a great privilege. I never expected that in 2014 I would become a sub-postmaster for a company that had purchased a supermarket with a post office in the back of it, or that in 2015 Budgens of Aylsham, which was the post office that I was the sub-postmaster for, would become the best post office in the entire country. I am very proud of that, and it has meant that my speaking about this issue has picked up quite a lot of attention. It has been a real privilege to bring my voice to the campaigning. I suspect that I will probably be the only serving MP who has been a sub-postmaster for the foreseeable future.
What brings the debate home to me is that I could so easily have been caught up in this problem. Had we purchased that supermarket a couple of years beforehand, I could have been suffering the consequences faced by so many of the men and women we are representing this afternoon. I still remember my stepfather wandering into my office and saying, “Well, you’re the finance director, Duncan. You will be the nominated legal sub-postmaster.” We thought very little of it, other than when I was given a postman’s hat at the staff Christmas party. I remember going on the Post Office training courses. Without a shadow of a doubt, the people I met were always good, decent, law-abiding citizens—the sort of people we saw in the drama documentary and about whom we have spoken so often. Every single one of us in the Chamber this afternoon will have constituents who have been caught up in this matter.
The right hon. Member for North Durham talked about people being traumatised; that is absolutely true. In the past three or four weeks, I have sat with a lady who ran a post office in my constituency. She said, “Duncan, I have seen you on the television. Will you come round and talk to me? I was running a village post office. I haven’t been able to sleep for years because I lost money, and I want to know whether I could be recompensed.” The Minister was incredibly helpful. He immediately gave me all the links for where I could help that lady. She and I sat down and went through her books and records for the best part of an hour, totting up a few of her columns. At the end of that process, I said, “I want you to sleep better tonight. I do not think you have lost any money; I think that you are one of the lucky ones. You may have had some losses in one year but gains the next because the system just did not work.”
We need to get that message out. I have quite a few cases in which people were not prosecuted, but they put money—a lot, in some cases—back in. The hon. Gentleman just spoke about ensuring that people come forward to get redress, and that is important. Some feel that they are not victims because they were not prosecuted or did not lose their livelihoods, but I have one case in which someone put in £80,000 over a period, and those people need redress.
The right hon. Member is absolutely right. The people watching this debate, or reading a report about it, must always remember that they can come forward, seek redress, and get help and support. If all else fails, contact your local MP. Most of us just want to help the communities and the people we are so privileged to represent. I entirely take his point.
I was very lucky in the case of the woman I was dealing with. I could say, “You can sleep easy tonight, because you are one of the lucky ones. The system did not work properly.” That closure—being told that—lifted a weight off her shoulders. We in this place often have the ability to open doors that people cannot open themselves. I was so pleased to be able to help.
That lady represents what we keep talking about. Sub-postmasters and mistresses were pillars of their community. Everybody in their village or town knows that those people were criminalised and simply not believed. That is where the whole of this sorry period started. In the business that I ran, I remember being incredibly worried, when the tills went down, that we had lost money. I knew one thing for sure: the staff were not taking money. I trusted them entirely.
The problem was the culture at the Post Office, which had become a corporate beast. It was losing its soul in the early 2010s, when there was an enormous push to be a stand-alone organisation, to not be reliant on the Government, and to sell, sell, sell financial products. I remember going to a 2016 Post Office conference and meeting Paula Vennells. The irony is that the conference was called “Together”, but while it was going on, hundreds of men and women up and down the country were being convicted for crimes that they had not committed. That is not very collegiate.
The legislation may not be perfect.There are Department for Work and Pensions convictions that I have taken up with the Minister that are not included in the Bill, and I know the reasons why—or his explanations. That does not mean that I do not support what we are doing today, but I certainly want to say this: we are not there yet. I think this whole situation is going to run and run for many years to come.
I do not say that light-heartedly, because I think that real closure for people up and down the country does not just mean compensation and convictions being quashed; it means criminal prosecutions of those within the Post Office who knew what had happened, but did not take the actions that they should have taken. I suspect we will see those prosecutions come forward in the years to come. I have probably said seven or so times in this place that Fujitsu needs to face some real questions. Of course, it will—it has already accepted that it will contribute compensation—but how on earth could a piece of software written by a multibillion-pound corporation have had a back door into it with no audit trail, through which somebody could simply alter figures? That is absolutely frightening. As I mentioned before, it prompts questions about the accounts of the Post Office and its auditors. So many problems will never be fixed.
As I have also said many times, I want a figure for how much money was stolen from all of those innocent sub-postmasters. Nobody has ever been able to tell me what that figure is.
Or even where it went. We could add up the figures that were taken off innocent men and women in the ITV drama alone, but across the country, I suspect it was tens of millions of pounds—possibly even more than £100 million. That figure needs to be identified, so that we understand the full scale of what happened here. Of course, the inquiry will conclude later this year, which will finally give us some real evidence of what went wrong.
Although I have summed up by saying there are still many questions to answer, we must remember that today is a very positive day for many, many people who are watching who were caught up in this situation. I say again, and place it on the record, that it is nice when the House comes together. There are a great number of people in the Chamber this afternoon who have done an enormous amount of good, and can hold their heads very high that we have got to this place today.
(8 months, 1 week ago)
Commons ChamberI thank the right hon. Gentleman for his comments and collaboration. It is important that we listen to his Committee’s recommendations and its very informative evidence sessions—I sat through all five hours.
At this point, we believe the Post Office should continue its work on the 100 or so cases before it. We currently have no capacity in the Department to handle those claims, although we clearly will by the time the Bill comes into effect. We do not want to pause between the Bill coming into effect in July and compensation payments being made. We think we can get those payments to people in August using that route.
There may be some people left in the first tranche of overturned convictions, for people who have been through the Court of Appeal. We will certainly look at the Committee’s recommendations on whether we should bring those cases back in-house or leave them with the Post Office. We will keep an open mind on that.
We already have fixed timescales to respond to offers or service level agreements in the GLO scheme. We commit to responding to 90% of full claims within 40 days of submission. I am happy to look at how we might put some benchmarks in place to make sure the new scheme has a similar speed of response. I am sure the right hon. Gentleman heard what I said about our new pilots under which lawyers can submit claims without forensic accountants and medical reports. That may do something along the line he says, and I will happily have an ongoing conversation with him.
Thus far, 128 of the 490 claims have been submitted to the GLO scheme, and 110 of them have been settled. To my knowledge, only one claim has gone to independent dispute resolution before going to the independent panel, which hopefully indicates that, generally, the offers are fair and have been accepted almost straightaway.
I understand what Jo Hamilton says, and I met her to discuss some of the processes she had to go through to prove her claim. We are determined to reduce those frictions and evidence requirements, certainly for things that are not essentially material. There are three things that we have to get right in delivering compensation: we have to be fair to the individuals and families affected; we have to be fair to all the other sub-postmasters to make sure there is consistency across the scheme; and, of course, we have to be fair to the taxpayer. There is no cap on what we will pay people, as long as it is fair.
I thank the Minister for bringing this statement to the House, as it clearly moves things in the right direction for closure. I have talked many times in this House about similar issues. The Government have put £1 billion aside to deal with all this, despite the fact that the Post Office has taken millions upon millions off postmasters—innocent people. We have never had the figure of what was taken, although I have asked for it before. I want a second figure, because Fujitsu has said on the record that it would help to compensate victims as well, by adding to the remuneration pot. What progress have we made on making Fujitsu pay also for being culpable in this fiasco?
I thank my hon. Friend for his regular contributions in this area, as it is always good to have the views of the only former serving postmaster in this House. We are looking to try to identify the figure he refers to and we hope to come back to him at some point; it is complicated, as a lot of these records go back a long way. However, that is a body of work we are undertaking with the Post Office. The Secretary of State had a conversation yesterday with the global chief executive of Fujitsu; we are keen to make sure that Fujitsu contributes and it has already said that it will—it said it has a moral responsibility to contribute. My hon. Friend mentions a figure of £1 billion, but we do not know the final figure for compensation. However, we would expect a significant element of it to come from Fujitsu.
(8 months, 4 weeks ago)
Commons ChamberThe hon. Gentleman makes a fair point. Full and fair compensation lies at the heart of this matter, and we do not want people to feel that the £600,000 is the only option for getting compensation in quick time. It is there for those who want to take the money, walk away and draw a line under the matter, particularly where they think their claim is below that figure. As the hon. Gentleman might have heard me say earlier, on the recommendation of the advisory board and others involved in the process, as soon as a full claim is received, individuals in the overturned conviction cohort will get their interim compensation of £163,000 topped up immediately to £450,000. That will ease the financial pressure and reduce what he suggests might be an incentive for people to take a lower amount than they deserve. A significant amount of money will be paid forward on that basis while the remainder of the compensation claim can be properly assessed.
I echo some of the words of the shadow Minister, the hon. Member for Bethnal Green and Bow (Rushanara Ali). I had an email overnight from a lady in Australia whose father was prosecuted by the DWP. He had been extremely ill, and he was given a six-month prison sentence for a crime he did not commit. From the statement this afternoon it is clear that the scope of the Bill will apply only to prosecutions from the CPS and Post Office Ltd. Those who received a sentence from the DWP will therefore be outside the scope of the new law. That cannot be right, Minister.
We have looked at this very carefully. In all the appeals based on DWP cases, the convictions have been upheld thus far. Clearly it is rare that we take the kind of route that we are taking now, in summarily overturning convictions. We see that the evidence bar was much higher in those cases. As I said earlier, there was surveillance of suspects and collation and examination of cash orders from stolen benefit books and girocheques, so there is a significant evidence base for these convictions. I would point out that people can still technically appeal their convictions. They can go through the normal Court of Appeal route. I would be happy to have a discussion with my hon. Friend afterwards to discuss this further if that would be helpful.
(9 months ago)
Commons ChamberThe right hon. Gentleman’s question is a good one. The fixed-sum awards show that we are taking the matter very seriously. I became Business Secretary in February last year, and my one priority was to ensure that people got their compensation as quickly as possible. I did everything that I possibly could, with the Minister with responsibility for the Post Office, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), whom I thank for his tireless efforts. He had been looking at the portfolio before I got the job as Business Secretary, and I knew that the work was in safe hands. We have worked together as a team, fought cross-departmentally to ensure that people got the compensation that they deserved, and brought in legislation just before December—well before the ITV drama. The cases that the right hon. Gentleman raises are important, as they show that there is still a lot of work to do, and we will continue doing it.
Given the Post Office’s track record with accuracy, I am very glad that we have heard from the Secretary of State—I would rather take her assurances at the Dispatch Box than anything from a disgruntled, sacked former employee of the Post Office. Even during last week’s recess, I still had constituents coming to me saying that they were affected by the Horizon scandal, so can the Secretary of State assure the people watching that the process is very quick and simple? People who still feel that they lost money during that horrendous period need to keep coming forward, because there is an easy process: they can fill in a form to make sure their voice is heard and that they get compensation.
My hon. Friend is quite right. I thank him for raising this issue, and also for the work he has done—as a former postmaster, he knows quite a lot about what has been going on. I reassure all of the people who have been affected by this scandal that it is something we take very seriously. When I became Business Secretary, I was absolutely horrified by the sheer scale of trauma that people had been going through. We want people to continue coming forwards; where they are not happy with the process, we will look at it again, but there is a formal process in place to ensure that all postmasters can be treated fairly, equally and equitably.
(10 months ago)
Commons ChamberI thank the right hon. Gentleman for his esoteric question. We are continually removing barriers to US-UK trade, and we are trading with the US more than ever before. If he has a specific example that I can help with so that he can enjoy his Burns night, I would appreciate it if he wrote to me, and we will look at the matter in detail.
I thank the hon. Gentleman for his work on this matter, which he and I have discussed on many occasions. The limits are there to try to prevent money laundering, but it is important that the checks are proportionate. I have raised their impact on a number of occasions with the Financial Conduct Authority and UK Finance. There is more transparency now and they are working more effectively. I know that the wonderful Ingham’s fish and chip shop in Filey now experiences fewer problems when it pays in money at its local post office. There is a great opportunity not just for Inghams fish and chip shop but for the post office banking framework to make that relationship more lucrative.
(10 months, 2 weeks ago)
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I thank the hon. Lady for her question and, once again, for her work in the all-party parliamentary group for post offices. I am sorry that I was not able to share a statement with her, and I appreciate her welcoming what we have done today.
I am very happy to term this “redress”; it is only about putting people back where they would have been, and trying to make good what has happened to them. I understand what she says about compensation, but this is there to compensate people financially for losses and impacts on their lives.
I could not agree more that, as well as delivering compensation more quickly and fairly, the No. 1 thing we would like to happen is for more people to come forward. A simplified process that does not require postmasters themselves to file an appeal will mean that this is done more quickly. The routes to compensation have been simplified, and we very much hope that people will come forward. That seems to be our experience right now. We will continue to engage with the devolved Administrations to ensure that they have everything they need, as they may want to adopt similar measures.
I welcome this legislation, and I thank the Minister for the amount of work he has done at such great speed. We are still at a midway point in the journey. There are still criminal prosecutions to come. One question that has never been answered is just how much money was taken unlawfully from thousands of innocent men and women. The Post Office took that money, and we have never known that figure. Even the most basic accountant knows that it will run into hundreds of millions of pounds. Could the Minister force the Post Office to publish the grand scale of the money it stole from people?
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.
(10 months, 2 weeks ago)
Commons ChamberAgain, I share the hon. Member’s ambitions in every part of his remarks. We, too, are disappointed that we have not had more people coming forward to have their convictions overturned, for a number of different reasons. Those people have been written to several times by different bodies, including the CCRC. We are keen to get the message out, but we do not think that that is the whole problem. We think there is a confidence issue for some of those people in coming forward after so many years, after what has happened to them, so we are very keen to say to them, “You will be treated fairly and dealt with as quickly as possible.”
A mass exoneration scheme, as the hon. Member described it, is something we are looking at. I cannot confirm that today on the Floor of the House, but we certainly think that that kind of blanket overturning of convictions, together with a rapid compensation scheme, will mean that more people get access to justice more quickly. That is something we are very keen on, and to deliver it UK-wide would absolutely be the right thing to do.
As a former sub-postmaster, last week’s drama brought up many emotions from my time serving from 2014 to 2019. I have mentioned Fujitsu five times in this Chamber, asking five times about its involvement. We now know, finally, that it had a back door into the live system. Minister, when will Fujitsu face justice for its utter incompetence in all of this? How can it be made to contribute compensation for the many postmasters with claims, instead of that being done the taxpayer, who is not responsible for this scandal?
I thank my hon. Friend for being a constant contributor to these debates. He brings real-life experience of these matters, which we very much value and appreciate. I would be very happy to keep up our regular engagement on these issues. He is not shy of informing me of different things that I need to be aware of and I appreciate that engagement.
Of course, the back door into the sub-postmasters account seems to have been a key contributor to this scandal, and Fujitsu seems to have had that back door. We are yet to establish how much of that was Fujitsu doing it unilaterally or whether it was being done on the instruction of the Post Office. The inquiry is there to give us those kinds of answers. The inquiry is committed to concluding by the end of this year and reporting shortly after. At that point, we will know who was responsible for what, and we should then be able to identify who can be made responsible through potential financial contributions, rather than the taxpayer alone having to pick up the tab for this very significant compensation package. I am just as ambitious as my hon. Friend is to make sure that those who are responsible pay for what they have done.
(11 months, 1 week ago)
Commons ChamberThe Minister is right when he says that this is a miscarriage of justice. As I have often said in this place, I was formerly a postmaster, and I can remember when the tills did not balance. Unlike the Post Office, I believed my staff that it was not their fault—that there was an error. Luckily, those errors were not significant, and we just wrote them off. I thank the Minister for all he has done, as well as my hon. Friend the Member for Sutton and Cheam (Paul Scully), who has equally done an enormous amount.
The Post Office did not believe those innocent postmasters who were simply doing their job, but equally, Fujitsu supplied the software that did not work properly, yet I never hear about whether that company is culpable. Can the Minister tell me what Fujitsu has ever had to suffer from what has happened to everybody else?
I thank my hon. Friend for his work on this issue, as well as his direct experience—he is one of the few people in this House who has that experience. I also pay tribute to my hon. Friend the Member for Sutton and Cheam (Paul Scully) for all the work he did as my predecessor; his comments about Fujitsu, and about making sure that it is not the taxpayer alone who picks up the tab, are clearly on the record. Again, where responsibility can be assigned, there should be accountability, perhaps in the form of compensation paid by those companies. It is right, though, that the Sir Wyn Williams inquiry is allowed to take the time it needs to report and to identify blame where it exists. Those matters can then be dealt with at that time.
Alongside introducing this Bill, my Department published a revised version of the documents for the group litigation order scheme, which make clearer than ever that the scheme exists to pay full, fair and timely compensation. If compensation cannot be agreed with my Department, a decision will be made by a panel of independent experts. Any GLO postmaster who believes that the panel’s award fails that fairness test can ask the scheme’s independent reviewer, Sir Ross Cranston, to look at their case. Between them, those arrangements provide powerful and independent assurance that compensation is fair.
Turning to compensation amounts, to date, around £138 million has been paid out to over 2,700 claimants across the three compensation schemes established by the Post Office and the Government. Those figures are regularly updated on the dedicated gov.uk page. So far, 93 convictions have been overturned. We have seen positive progress since my previous statement to the House on 18 September, which announced that postmasters who have had convictions on the basis of Horizon evidence overturned are entitled to up-front offers of £600,000 as a fixed sum in full and final settlement of their claim. I can confirm that following that announcement, the first 22 claimants have now settled their claims with the Post Office, taking the total to 27 full and final settlements—I hope this will encourage other postmasters to submit claims. I should add that a significant proportion of those claimants followed the fixed sum award route.
The GLO scheme, administered by my Department for the 500 trailblazing postmasters who took the Post Office to court and exposed the Horizon scandal, has already paid out roughly £27 million across 475 claimants. Postmasters who were neither convicted nor members of the GLO can apply to the Post Office-run Horizon shortfall scheme. I am pleased to say that every last one of the 2,417 people who applied before the scheme’s original deadline have now received initial offers of compensation, and some £87 million has been paid out. The Post Office is now dealing with late applications and with those cases where the initial offer was not accepted.
I turn now to the provisions of the Bill before us. The Post Office (Horizon System) Compensation Bill, a small Bill of just two clauses, provides a continuing legal basis for the payments of compensation to victims of this appalling scandal. Principally, it will enable the Government to continue to pay compensation under the GLO scheme that my Department is currently administering. Compensation payments made under the scheme are currently paid under the sole authority of the successive Appropriation Acts, and Parliament requires all such payments to be made within a two-year period. The first payment of interim compensation was made on 8 August 2022, meaning that, with the law as it stands, no GLO payments can be made beyond 7 August 2024. This Bill removes that deadline.
This certainly does not mean we are taking our foot off the gas. We will still want to be able to pay compensation as quickly as possible. My Department is now committed to making an initial offer of compensation in 90% of cases within 40 working days of receiving a fully completed GLO claim, and many claims will be dealt with much more quickly. However, as Sir Wyn Williams has noted, the resolution of compensation claims requires actions by postmasters, their advisers and third parties, as well as by the Government.
In his interim report, which he provided to Parliament in July, Sir Wyn expressed concern that the August deadline could leave some postmasters timed out of compensation or rushed into making decisions. The Government agree that this must not happen, and the Bill ensures that it will not happen. All GLO postmasters will get full and fair compensation, and they will get it promptly without being unduly rushed.
In conclusion, until everyone has fair compensation, the truth is known and the guilty are held accountable, Members of this House and others will rightly continue to raise issues about this scandal. In the meantime, the House should know that this Government are on the side of the postmasters, and we will continue to give these issues our full attention and do our best to resolve them. This Bill is a further example of that, and I commend it to the House.
(1 year ago)
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Indeed I do agree. If we look at this historically, the Royal Mail post office network was one of the proudest achievements of the 19th century: it made this country what it is. One last point on the DVLA—some 6 million people use the post office network for accessing DVLA services each year. That increases the vital footfall to local branches which helps to pay our postmasters, and keeps our post offices open. I call on the Government to look again at this decision to take away this function.
Finally, to conclude—[Interruption.] I will give way to the hon. Gentleman.
I thank the hon. Gentleman for giving way. He would know that I would want to say something, being a former postmaster myself. There is a glaring hole on our high streets as our banks leave at an ever growing rate. The Post Office does a fantastic job, as we know. Why can it not be given the tools to roll out banking hubs up and down our high streets? Not only would this be a fantastic additional service to the post office network, but it would also help postmasters—who could perhaps run them—receive valuable additional revenue.