Digital Markets, Competition and Consumers Act 2024
Justin Madders Excerpts(1 month ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
The Digital Markets, Competition and Consumers Act received Royal Assent on 24 May 2024. The Act will make significant changes to the UK’s competition and consumer landscape that will protect small businesses, save consumers money, boost innovation and drive growth.
Part 1 of the Act will establish a pro-competition regime for digital markets that will promote more dynamic markets and ensure the most powerful tech firms treat consumers and business fairly.
Part 2 makes several enhancements to our wider competition regime, to give the Competition and Markets Authority greater powers in tackling illegal, anti-competitive, behaviours and to focus competition regulation on the areas of greatest potential harm.
Parts 3 and 4 strengthen the enforcement of consumer law and introduce new consumer protections, including tackling fake reviews and drip pricing, new rules for consumer saving schemes and introducing new rights relating to subscription contracts.
Part 5 contains miscellaneous measures including provisions which deal with investigative assistance to overseas regulators, disclosing information overseas, providing for a duty of expedition on the CMA and sectoral regulators, and giving the CMA new information gathering powers to support a function of monitoring competition in the retail motor fuel sector in the UK.
A key focus of the Act is providing greater powers and responsibilities for the CMA, the UK’s primary independent competition and consumer protection authority. This will help the CMA meet the challenges of the modern economy.
The Government recognise the importance of implementing the Act as soon as possible so that businesses and consumers can reap its benefits. We also understand those affected by the Act need to know when its changes will come into effect. That is why the Government are publicly setting out our plans for implementation.
Key steps must be taken to implement the Act. Secondary legislation must be laid in Parliament, under powers set out in the Act, before the Act’s measures can be commenced and enter into force. The CMA must publish guidance setting out how it will carry out its functions and use its powers. The Secretary of State for Business and Trade must approve CMA digital markets guidance. The Government are working closely with the CMA to ensure these are in place as soon as possible. Of equal importance is the need for secondary legislation and guidance to be detailed, robust and clear to ensure the Act’s changes are understood and can be complied with.
The Government aim to commence parts 1, 2 and 5 of the Act in December 2024 or January 2025. In the autumn, secondary legislation will be laid before Parliament for scrutiny before it enters into force. Commencing part 1 will bring the digital markets regime into effect, and we expect the CMA to launch the first strategic market status investigations shortly afterwards. The reforms to the existing competition regime, the new motor fuels function and other part 5 measures will take effect on the commencement date.
The commencement order will be made at least 28 days before the commencement date.
In April 2025, the Government expect to commence part 3 of the Act, which provides for the consumer enforcement regimes, and part 4, chapter 1 of the Act, which replaces the unfair trading regulations. Secondary legislation will set out rules for the CMA’s new direct enforcement powers, alongside guidance on these new powers. New savings schemes rules will not commence before April 2025, and this timeline is subject to continuing engagement with consumers and industry. Reforms to subscriptions contracts and alternative dispute resolution will follow later, with subscriptions reforms not commencing before spring 2026, at the earliest. These timelines follow commitments made in the previous Parliament, and reflect the quickest possible delivery of the reforms, while ensuring that the necessary consultation and other steps can take place.
The Government’s implementation plans will deliver the Act’s benefits as quickly as possible, while ensuring its changes enter into force smoothly, allowing those that will be affected by them adequate time to prepare.
[HCWS74]
Strikes (Minimum Service Levels) Act 2023: Repeal
Justin Madders Excerpts(1 month ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
Minimum service levels unduly restrict the right to strike and undermine good industrial relations. The introduction of the Strikes (Minimum Service Levels) Act 2023 was met with widespread condemnation from employers and trade unions. Many employers across different sectors pointed to its unworkability and impact on the ability of employers and trade unions to negotiate and to resolve disputes.
As such, the Government announced on 6 August 2024 that we will repeal the Strikes (Minimum Service Levels) Act 2023 to get public services back on track and strengthen the rights of working people. The Deputy Prime Minister and the Secretary of State for Business and Trade have also written to other Secretaries of State, the First Minister of Scotland and the First Minister of Wales asking them to encourage employers to avoid imposing minimum service levels on their workforce, until the Act is repealed.
We have begun preparations to repeal the 2023 Act as part of the forthcoming employment rights Bill. Amendments made by the 2023 Act to the Trade Union and Labour Relations (Consolidation) Act 1992 will accordingly be reversed and any minimum service regulations will lapse automatically once the employment rights Bill has Royal Assent.
Although the ability of employers to give work notices will legally continue until the Strikes (Minimum Service Levels) Act 2023 has been formally repealed and amendments to the 1992 Act are accordingly reversed, in this interim period we have strongly encouraged employers to seek alternative mechanisms for dispute resolution, including voluntary agreements, rather than imposing minimum service levels.
I also wish to make clear that, following the High Court ruling in August 2023 which upheld the judicial review challenge on the Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2022, employment businesses are prohibited from providing agency workers to cover the duties normally performed by a worker of an organisation who is taking part in a strike or other industrial action. In the light of the High Court ruling, it is not necessary to repeal these regulations.
The upcoming employment rights Bill will remove barriers to effective dispute resolution and we will continue to work with businesses as we develop and implement our plan to make work pay.
[HCWS75]
Oral Answers to Questions
Justin Madders Excerpts(1 month ago)
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Adam Jogee (Newcastle-under-Lyme) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
We have already taken a number of steps to improve employment rights in this country. We have written to the Low Pay Commission to ask it to end the discriminatory age bands, so that all adults will be paid the same minimum wage rates. We have also asked it to look at including the cost of living when setting future wage rates, and have announced that we will repeal the unconscionable and unworkable Strikes (Minimum Service Levels) Act 2023, but there will be more. We will transform workers’ rights in this country, and will introduce the employment rights Bill within 100 days of taking office, as we promised.
Adam Jogee
I thank the Minister for setting out just how much this Government are on the side of workers in our country. Can I ask him to gently remind the Secretary of State that there is a pint waiting for him at the Bridge Street Ale House in Newcastle-under-Lyme from the owner, Grum Newbury? The people of Newcastle-under-Lyme believe in hard work, decency, respect and dignity at work, so can the Minister set out what this new Government are doing to end the exploitative use of zero-hours contracts in north Staffordshire and across our country?
Justin Madders
My hon. Friend is right: the explosion of zero-hours contracts in this country has been shameful. Over 1 million people are now on zero-hours contracts, and one in five of those people report that they would like to be able to get more hours of work, so we are going to end the uncertainty of zero-hours contracts. We are going to make sure that work pays, and we are going to give those people a legal right to a contract that reflects the number of hours they regularly work over a 12-week period.
Madam Deputy Speaker (Judith Cummins)
I call the shadow Secretary of State.
Kevin Hollinrake (Thirsk and Malton) (Con)
I welcome the Secretary of State and his Ministers to their places. The Secretary of State seems to imply that businesses are comfortable with his changes to the workplace, but this morning I and my fellow shadow Ministers met business representative organisations that are far from comfortable with the changes he is making, such as day one employment rights, a four-day week, a right to switch off and a higher and broader national living wage, as well as changes to business taxes, including in relation to business property relief, and the fair work agency. Does he not realise—do his Ministers not realise—that until he brings forward the detail on these plans, businesses’ recruitment and investment plans are completely on hold? When will he bring forward those plans?
Justin Madders
I thank the shadow Secretary of State for his question. I just remind him that he has to direct the question to the Minister responding—I am sure we will get there in the end.
I also remind the shadow Secretary of State that during the general election, the front page of The Times had 120 businesses supporting the Labour party in full knowledge of our plans to make work pay. We are consulting regularly and frequently—almost on a daily basis—with businesses about how the plans will work. I am afraid that the shadow Secretary of State has spent the summer putting out scaremongering statements about what this all means. In fact, the only statement he made over the summer on which I agreed with him was that his party deserved to lose the general election.
Kevin Hollinrake
The Minister talks about statements, so I will read him some. The Federation of Small Businesses says its members view these measures with “trepidation”. The Institute of Directors says that confidence is fizzling out, with the biggest one-month drop on record. The Recruitment and Employment Confederation says that these changes
“risked fuelling long, complex litigation”
for businesses defending themselves at employment tribunals. Will he—and the Secretary of State—at least consider exempting small and medium-sized enterprises from these ruinous, French-style regulations?
Justin Madders
Again, I have to point out that I am not the Secretary of State—perhaps one day.
We heard all these arguments 20 years ago with the minimum wage. Conservative Members were wrong about that, and they are wrong about this. I just hope they are a bit quicker to come round to realising that this country is going to prosper with improved workers’ rights, working in partnership with businesses to improve the economy for the benefit of everyone.
Gregory Stafford (Farnham and Bordon) (Con)
David Pinto-Duschinsky (Hendon) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
The introduction of the minimum wage was one of the proudest achievements of the last Labour Government, but for too long the UK’s labour market enforcement system has been fragmented and ineffective. That is bad for workers and bad for the majority of businesses that want do to the right thing and comply with the law. That is why we will create a fair work agency to bring together employment rights enforcement, including of the minimum wage.
Madam Deputy Speaker (Judith Cummins)
I remind Members that these are topical questions, so can we have short questions and short answers?
Antonia Bance (Tipton and Wednesbury) (Lab)
My right hon. Friend will be aware of the disgraceful union-busting tactics and intimidation employed by Amazon against GMB members seeking union recognition at the Amazon warehouse in Coventry. Despite more than 1,000 votes in favour, union recognition was lost by just 28 votes. What steps is he taking to ensure that workers, such as the brave and determined GMB activists at Amazon, can more easily win union recognition?
Justin Madders
I draw the House’s attention to my proud membership of the GMB trade union. We believe that businesses work best when they give workers a voice through a recognised trade union. I would be very interested to hear more about what has happened at the Amazon warehouse in Coventry. The Government will look closely at that as part of our plan to make work pay. We will simplify the process and laws around statutory recognition.
Matt Western (Warwick and Leamington) (Lab)
Last weekend, hundreds of thousands of Oasis fans were left angered by the notion of dynamic pricing—a concern that we are seeing across the wider economy. Does the Minister agree that we need an urgent review of such price gouging systems?
Justin Madders
That certainly took the nation’s interest in more than one way. The Department for Culture, Media and Sport has already announced a review into it, and we will look at secondary pricing. The whole system needs urgent reconsideration, and we understand that the Competition and Markets Authority is looking into the matter, too.
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
What thought has the Secretary of State given to attending the Williams inquiry? The Post Office scandal is unfinished business. It is now vital that we not only learn the lessons, but accelerate redress for the innocent and, crucially, punish the guilty fast.
Post Office Horizon
Justin Madders Excerpts(2 months, 1 week ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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Kevin Hollinrake (Thirsk and Malton) (Con)
(Urgent Question): To ask the Secretary of State for Business and Trade to make a statement on financial redress for postmasters and outstanding issues relating to the Post Office Horizon scandal.
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
As hon. Members will know, convictions across the UK have been quashed through recent legislation, and those affected are now able to apply for financial redress under the Horizon convictions redress scheme. The scheme will be wholly delivered by the Department, not the Post Office. All the forms of redress, including those pursued under the group litigation order, will be delivered by the existing schemes.
Since taking office, this Government have continued to work closely with the Scottish Government and the Northern Ireland Executive to identify those who have had their convictions overturned. Letters have started to be issued to those eligible that will confirm that their conviction has been quashed and provide further information on how to access financial redress. But I would encourage those who believe that they are eligible not to wait for a letter. Please do come forward now and register for the Horizon conviction redress scheme.
We have put guidance on gov.uk to help people know where they stand: whether their conviction has been overturned and, if eligible, how to apply for redress through the registration and application process. Victims will be able to choose from two options: first, they can either accept a fixed settlement of £600,000; or, secondly, they can choose a full claim assessment if they believe their losses exceed £600,000 and wish to have their application fully examined by the Government.
No matter what route they choose to take, once an applicant’s eligibility is confirmed, they will be paid a preliminary payment of £200,000. We are making sure that they can access historical data from both the Post Office and His Majesty’s Revenue and Customs to support their decision and the application. We also recognise that, with the best will and support in the world, in a few cases, some information may not be retrievable, but I assure hon. Members that, even in those cases, we will do all we can to ensure that a fair offer is made to sub-postmasters who have suffered this terrible injustice. This House was united in the last Parliament in its wish to see justice for sub-postmasters. In this Parliament, we intend to deliver on that.
Kevin Hollinrake
It is disappointing that I have again had to ask an urgent question to get the Government to come to the Dispatch Box. It is also disappointing that neither the Secretary of State nor the postal affairs Minister—the Minister of State, Department for Business and Trade, the hon. Member for Harrow West (Gareth Thomas)—has responded to either of the urgent questions. This is clearly an important matter that deserves full scrutiny by this House. Despite earlier promises only 12 days ago to give the House a significant update, only a written statement was available.
One of the final acts of the last Government was to pass legislation that, for the first time in history, overturned hundreds of convictions and set in train a process to provide redress to the victims. We made a clear commitment that the victims would be able to apply for redress before the summer recess. That commitment has not been honoured, although claimants can now register for redress. To do so, they need a reference number that is available only to individuals written to by the Ministry of Justice, which has today confirmed that only 10 of the 700 postmasters have received such a letter.
I ask the Minister: when will the other 690 postmasters be written to? Assuming claimants apply for the most rapid form of redress—a fixed sum award—when will the first £600,000 payments be made? The Secretary of State will acknowledge that we had conversations regarding Court of Appeal convictions and those refused leave to appeal that were not quashed by the legislation. What steps is the Minister taking to ensure that those cases are given assistance to overturn their convictions?
The last Government also announced that we would top up claimants in the Horizon shortfall scheme to a minimum payment of £75,000. How many of the thousands of claimants in this scheme have been written to to that effect? Finally, where is the Secretary of State, or where is the hon. Member for Harrow West, who has been appointed post office Minister?
Justin Madders
We promised to update Parliament before the summer recess, and we have done that by way of a written ministerial statement. I note that, when the shadow Minister was the Minister, he came and answered on most occasions for the Government. We certainly did not take that as an indication that the Government were taking this matter any less seriously than they should, and that is not the case now either. I understand the frustration that the shadow Secretary of State has about the number of letters that have gone out, but there have been difficulties in corroborating some of that data. I understand that, when he made that promise as a Minister, he did so in good faith, but it has turned out that additional physical checks have been required. We have had to access court documents—sometimes stretching back decades—which has meant that there have been delays. The Ministry of Justice has put more resource into that to ensure that work carries on at pace.
As the shadow Secretary of State has noted, the website is now up and running and applicants can register on it. I am pleased to report that, as of this morning, 89 people have already done so. We hope that, once verification checks have been completed, payments can be processed within 10 working days. We understand that the question on the Court of Appeal was discussed at length during the passage of the Post Office (Horizon System) Compensation Act 2024. The matter deserves further consideration, and I understand that the Minister for postal services has had conversations on what we can do in that respect.
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
I welcome the answer provided by my hon. Friend. He will remember that, when the Select Committee reported just four or five months ago, we noted that 80% of the budget for redress had not been paid out. We suggested to the now shadow Secretary of State a number of measures to put into the Bill to speed up the process. Those amendments were rejected. Can the Minister now assure us that he has a grip on this and that we will now begin to see cheques in the post much faster?
Mr Speaker
Order. May I just say that Members should speak through the Chair, not to the Minister? As an established Member of this House, I am sure that the right hon. Gentleman would not want to start on the wrong foot with me.
Justin Madders
My right hon. Friend makes an important point. We want payments to be processed as quickly as possible. Data is updated monthly on the Government website. We can see that, in terms of the group litigation order, 210 offers have now been made. Under the Horizon shortfall scheme, of 2,730 claimants, altogether 2,417 offers have been accepted. Of the 110 convictions on the overturned convictions scheme, initial payments have now been made to 103 of those people.
Sarah Olney (Richmond Park) (LD)
It has been said many times across this House, but it bears repeating: this was an appalling miscarriage of justice. The shocking dishonesty of Post Office officials found its match only in the bravery of the sub-postmasters who stood up to them. The Liberal Democrats welcomed the legislation in the previous Parliament to finally deliver justice by quashing their convictions, and we likewise welcome measures to ensure that those affected get the compensation they deserve. However, what we have seen with previous compensation and redress schemes for the victims of this scandal is a pattern of delay, complication and inefficiency. Neither the Post Office nor the Department for Business and Trade has earned the necessary trust from the sub-postmasters to administer the schemes. With that in mind, the Business and Trade Committee recommended in 2022 that an independent intermediary body be set up. Does the Minister agree that it is now time to appoint that independent body to ensure that these schemes get delivered fairly, effectively and without delay?
Justin Madders
I thank the Liberal Democrat spokesperson for their contribution. We are concerned that matters are taking too long. We have been working with lawyers who have signed up to a framework for representing claimants, and we are looking at ways we can speed the process up. There are issues in terms of collating enough expert evidence to support the claims, but we are looking at how that can be accelerated. On the independent process, we are looking at an independent mediation step after the initial decisions and offers are made, and ultimately an independent appeal decision will be considered as well.
Ian Lavery (Blyth and Ashington) (Lab)
A whole number of individuals out there have been convicted and have paid huge amounts of money—£10,000, £20,000 or £30,000—back to the Post Office, but because they were directly employed not by the Post Office, but perhaps by their sub-postmaster, they cannot get any redress. They are victims of the Horizon scandal equally as much as anyone else. What advice can the Minister give to people in my constituency of Blyth and Ashington who find themselves in those circumstances?
Justin Madders
My hon. Friend refers to some specific circumstances that I would welcome further information on. If he can contact the Department, the relevant Minister will look through those circumstances to see whether there is anything we can do, because we do not want anyone to be out of pocket as a result of this scandal.
Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)
Communities across the country were impacted by the Horizon scandal, and one of those was Wheaton Aston. Not only did Wheaton Aston lose a much-loved postmaster, but it lost its post office. Will the Minister look at the specific case of Wheaton Aston not just in terms of that postmaster getting compensation, but to take up the issue with the Post Office to ensure that a post office is returned to the village?
Justin Madders
I will certainly relay that back to the Department, and we will look in some detail at that. It is important that communities have a post office that they can access. They are a vital part of our infrastructure in this country and a vital lifeline for many individuals, and we want to make sure that every community is served as much as possible.
Pamela Nash (Motherwell, Wishaw and Carluke) (Lab)
I take a moment to pay tribute to my predecessor, Marion Fellows, for the work she did on this issue throughout her time in this House. I was delighted to hear from the Minister that there have been conversations with the Scottish Government regarding this issue and looking for justice and redress for sub-postmasters. How confident is he that no further obstacles will be put in the way of justice and redress in Scotland by the Scottish Government following those conversations?
Justin Madders
I join my hon. Friend in paying tribute to her predecessor, who was tenacious in her pursuit of this matter. We have had a number of conversations with the Scottish Government, and we do not want to see any difference between how this scheme is administered in any part of the country. We are confident that will be the case.
Dame Caroline Dinenage (Gosport) (Con)
This is a national scandal, and it is almost impossible to quantify the loss of trust in the Government and the Post Office that has resulted. Can the Minister set out a little more on what the Government intend to do to ensure that the information and support to make the applications to the redress scheme will be there for every single postmaster who has been affected and every single one who had a conviction quashed?
Justin Madders
The hon. Member asks an important question. Disclosure packs are being prepared for every claimant, which will contain what we believe is all the information they need to assess whether they wish to accept the fixed sum, or to proceed to a more detailed assessment of the claim. The pack will include details of their contracts and remuneration with the Post Office, details of whether they were eligible for the Royal Mail share plan and any other information that the Department can obtain that is requested. We want to work at pace with individuals to ensure they have all the information they need to make an informed decision.
Kate Osborne (Jarrow and Gateshead East) (Lab)
The Minister will be aware that I have long campaigned on this issue. He might not yet be aware of a letter I sent to his Department highlighting issues with the current compensation schemes, as well as calling attention to issues with the original 555 sub-postmasters, one of whom is my constituent Chris Head. Chris was one of the thousands of people impacted by the Horizon scandal, and he has still only been offered 17% of his verified claim. Will the Minister agree to meet me and Chris to discuss these issues?
Justin Madders
I am indeed aware of my hon. Friend’s letter and all the work she has done over a number of years in support of her constituents and the wider sub-postmaster community. I am sure that the relevant Minister will agree to meet her and her constituent, and I will make sure that request is passed on to him.
Llinos Medi (Ynys Môn) (PC)
As the Member for Ynys Môn, I represent Lorraine Williams and the formidable Noel Thomas, who spent his 60th birthday in jail for a crime that never took place. It is clear that sub-postmasters continue to be treated appallingly by the UK Government in the wake of the Horizon scandal and made to feel guilty for the cost of compensation to the public purse. Can the Minister give confidence to Noel that the new Government will compensate for the real human cost of the suffering caused by this awful scandal?
Justin Madders
We do not want sub-postmasters to feel guilty for claiming what is rightfully theirs. What this place has decided is their entitlement. We have taken measures to ensure that they will not have to foot any legal bills for taking advice in respect of their applications and we want to ensure that every potential head of loss is covered and adequately compensated for. We want to make the process as easy and swift as possible for those affected.
Rupert Lowe (Great Yarmouth) (Reform)
I am pleased to hear from the Minister that the Government will expedite payments to those people who have been extremely badly treated by a state-owned entity in this national scandal. Will he do anything about those people who arguably knew that the Fujitsu software called Horizon was deficient and yet still brought legal cases against sub-postmasters, many of whom went to prison? There must be some redress and, going right the way back, those who were responsible for bringing cases against innocent people in the knowledge that the software was deficient must suffer some form of penalty.
Justin Madders
The hon. Member makes an important point, which has been raised on a number of previous occasions. We believe that the correct approach is for the inquiry to assess those individuals’ particular culpability, and then we will take forward its recommendations. It is important that we see individuals take some responsibility and accountability for their actions.
Robbie Moore (Keighley and Ilkley) (Con)
The Horizon IT scandal is without doubt one of the greatest miscarriages of justice in our history. While we cannot change what has happened, we must establish what went wrong. Will the Minister assure the House that he will carefully consider the findings of the Post Office Horizon IT inquiry? Does he agree with the shadow Secretary of State that there should be prosecutions of those deemed responsible?
Justin Madders
We are taking a close interest, as the hon. Member would expect, in the evidence coming forward in the inquiry. Much of it is shocking. The amount of obfuscation and, shall we say, misinformation put out by a number of individuals is concerning. We think it is right to wait and see what the chair of the inquiry recommends in terms of future action, but we are committed to looking at that closely and ensuring that individuals take responsibility for their actions.
Christine Jardine (Edinburgh West) (LD)
One of my constituents was about to end more than 20 years of service with the Post Office with a comfortable package, but she was persuaded to take on a post office for two months. She did so and then got caught up in the Horizon scandal. She had months of trauma, trying to prove her innocence and arguing with the Post Office, and then she was sacked. She lost the package and incurred a lot of expense. I spoke to the previous Minister about that.
My constituent has applied for compensation, but she has been told that she is not entitled because she did not have a contract, which she says she did. Will the Minister meet me to discuss how we can protect such people and ensure that they get the compensation they are entitled to, and that we do not have this continual excuse-finding for not paying people who deserve compensation?
Justin Madders
I am grateful to the hon. Member for that question. Where there are evidential difficulties, we are looking at other ways of ensuring that those who should be eligible are entitled to claim. I am happy to have further conversations with her in that respect.
Jim Shannon (Strangford) (DUP)
I thank the Minister very much for his answers to the questions posed. I make representations for the 26 postmasters from Northern Ireland who have been fighting for years to clear their names. While it is fantastic that movement has been made to undo the wrongs of this scandal—I thank the Minister and the Government very much for that—what steps have been taken to ensure that compensation is issued to all postmasters across the UK in a timely manner to avoid more delays and miscarriages of justice, including for those 26 from Northern Ireland?
Justin Madders
We are working closely with the Northern Ireland Executive to ensure that all the information required is verified and corroborated so that those individuals in Northern Ireland who have been caught up in this scandal receive that letter as soon as possible.
Post Office Horizon Scandal
Justin Madders Excerpts(2 months, 3 weeks ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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Kevin Hollinrake (Thirsk and Malton) (Con)
(Urgent Question): I congratulate you on your re-election, Mr Speaker, and thank you for granting this urgent question, which is to ask the Secretary of State for Business and Trade if he 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 (Justin Madders)
I congratulate the shadow Secretary of State on his new position and on securing the first urgent question of this Parliament.
Members will know that the Government made a key manifesto commitment to ensure that justice and compensation are delivered as swiftly as possible for every postmaster caught up in the Horizon scandal. The Secretary of State has already met Sir Alan Bates, Kevan Jones and the chair of the Post Office, Nigel Railton, to discuss the progress being made and what more can be done. The Government intend to make a significant announcement on the new redress scheme before the summer recess. This scheme will apply to postmasters whose convictions have been overturned by the Post Office (Horizon System) Offences Act 2024 passed in the last Parliament.
Kevin Hollinrake
I welcome the Minister to his role. I say in all sincerity that I wish him the very best of luck. We on the Opposition Benches, in the national interest, wish the Government to succeed. It is vital that his Department succeeds in its brief. When British businesses do well, we all do well.
I hope this urgent question, on a matter on which the House has been in agreement, will set us off on the right foot in working together in the national interest. That matter is of course compensation for sub-postmasters affected by the Horizon scandal. I was the previous Post Office Minister, and the House will know of my commitment and my party’s commitment to the individuals whose lives have been torn apart by this scandal.
It is right that the Post Office (Horizon System) Offences Act received Royal Assent during wash-up to quash the convictions of hundreds of affected postmasters, but the Minister will know that the Act itself does not provide compensation, which is why, alongside that legislation, we announced plans for a new Horizon convictions redress scheme. This scheme will make compensation payments to those who have had convictions quashed by the Act.
In government, we ensured that Royal Assent was achieved as soon as possible so that there was no gap in the availability of compensation. It is only right that postmasters have access to swift and fair compensation. That is why we overturned those convictions. Those with overturned convictions have the option of immediately taking a fixed and final offer of £600,000. It is also why, in government, we changed the rules for those in the Horizon shortfall scheme so that they are entitled to a £75,000 fixed-sum award, bypassing the assessment process; so that all full and final settlements below that figure would be automatically topped up; and so that an appeal process for those in the HSS is also considered.
Although I am pleased that, as of 31 May, approximately £222 million has been paid to over 2,800 claimants across the scheme, I must push the Government for more detail on when the redress payments set out by the Horizon convictions redress scheme can be expected—we were told that it would be by July. I also note that the Department for Business and Trade has said that it “continues to work” on the new Horizon convictions redress scheme.
I ask the Minister—[Interruption]—when will the scheme be up and running? When does he expect the £75,000 top-ups and the HSS appeal process to be implemented, and the victims to be contacted to that effect? When will he open the scheme? Will he announce a date for full compensation under the Horizon convictions redress scheme?
Mr Speaker
Order. I gently say to the Chamber that it is a new beginning, and we want to start on the right foot, not the wrong foot. It is difficult to go from Government to Opposition, but there is a two-minute limit for the Opposition and a one-minute limit for the third largest party. Please let’s stick to the rules and start as we mean to go on.
Justin Madders
Thank you, Mr Speaker.
The shadow Secretary of State set out the intent he had in government, which we intend to carry on. We also believe there is absolutely no reason why we should not continue to work on a cross-party basis, as we agree with him on the importance of delivering fast and fair compensation, which is at the heart of all we are trying to achieve. We will be making a statement by the end of July, before the summer recess. As the shadow Secretary of State has already noted, we have committed to do that. We are working at pace with officials, victims and those who have been affected by the scandal to work up the detail, and an announcement will be made in due course.
Jon Trickett (Normanton and Hemsworth) (Lab)
It is good to see you back in your place, Mr Speaker. The new Minister will recall the old saying that a new broom sweeps clean, and I am sure he will make progress very quickly indeed. It seems to me that the Post Office scandal reveals a wider problem in British society. Whether it is Orgreave, Grenfell, contaminated blood or the problems at Hillsborough, the British establishment seems incapable of listening to the voices of ordinary people. Will he raise that matter with other Ministers and see whether there is a way for this Government to ensure that is not repeated?
Justin Madders
My hon. Friend raises an interesting point. In recent years, we, as Members, have reflected on the question of political accountability for decisions that have been taken and actions that have taken place over many years. We will be reflecting on how best to ensure there is genuine political accountability in the system.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
I also welcome you back to your place, Mr Speaker. It is a genuine pleasure for me, as the Liberal Democrat spokesperson, to be addressing the House on behalf of the third largest political grouping. My party will use the privilege of that position to hold the Government and Ministers to account. We will not be using it simply to stoke division and manufacture grievance. That is what the people of the United Kingdom, and Scotland in particular, voted for.
At the heart of the Horizon scandal was the culture at the centre of the organisation that failed to respect the work that was being done by sub-postmasters at the frontline. The Minister and the Secretary of State will meet with the chief executive of the Post Office. What evidence have they seen that that culture has actually changed?
Justin Madders
I do not know if the right hon. Gentleman is aware that the current chief executive officer has stepped aside for a brief period to concentrate on the inquiry. Over the coming months, we will be reflecting on the important questions that the right hon. Gentleman raises, particularly when the outcome of the inquiry is known.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
Referring to the point raised by my hon. Friend the Member for Normanton and Hemsworth (Jon Trickett), what role does the Minister think this Government can find for third party organisations, such as WhistleblowersUK or those organisations that work with people to highlight such scandals? As my hon. Friend pointed out, this was a systematic failure across Government and society, and we simply cannot allow it to happen again.
Justin Madders
My understanding is that the last Government undertook a consultation on whistleblowing. We are reflecting on the outcome of that and on the important point my hon. Friend raises. Across a whole range of bodies in this country, whistleblowers have not been heard. We need to consider whether the current legislation gives them sufficient confidence to speak out, and whether their actions and concerns are being addressed.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
Many congratulations on your re-election, Mr Speaker. I congratulate the Minister on his appointment. I know he is genuinely committed to promoting British business at home and abroad, but is he aware of a serious issue flowing from the Horizon scandal that is now affecting current postmasters? In order to express their disgust at what has happened in relation to Horizon, some members of the public are not using the Post Office in the way they did previously. Will he and the Government commit to promote the view that the Post Office is safe to use, because the scandal has been resolved and because using post offices is good for the community?
Justin Madders
I am concerned to hear about such incidents. It should go without saying that the postmasters are not the ones who should take the opprobrium of the public on this matter. They are doing a fantastic job. They hold communities together and provide a public service. We should celebrate that and encourage people to use their facilities as much as possible. If the right hon. Gentleman has specific examples of postmasters receiving abuse or people being discouraged to use their services because of the scandal, I would be interested to hear about them.
Caroline Nokes (Romsey and Southampton North) (Con)
It is a delight to see you back in the Chair, Mr Speaker. There were many sub-postmasters and mistresses who were not convicted, but who are seriously out of pocket due to the shortfalls that they themselves made up and deeply traumatised by the experience that they went through. Can the Minister provide reassurance that the Department will seek to ensure that they are supported, and that the compensation scheme is swift, effective but also very straightforward for them?
Justin Madders
I thank the right hon. Member for her question. Those are the principles that we want to address and carry on with from the previous Government: the system should be fair, swift and simple. We know that postmasters have already gone through an incredibly difficult time. We do not want to make it even harder by having a convoluted system. We absolutely agree that justice should be fair, quick, complete and straightforward for people.
Kit Malthouse (North West Hampshire) (Con)
Beyond compensation, one of the most important things that campaigners are looking for is consequences for those people who played a part in the creation of this scandal. The Prime Minister has made much about the integrity and accountability of his Government. Presumably that is retrospective. What consequence does the Minister envisage for those current serving Government Ministers who are deemed by the inquiry to have been negligent in their conduct in ministerial office in the past?
Justin Madders
That is a very important question. It would be premature of us to draw conclusions before the inquiry has been completed but, absolutely, we should be looking very carefully at all those individuals whose behaviour unfortunately led to the scandal happening and to it taking far too long to address. That is a matter for the inquiry to make recommendations on and, certainly, we will be looking to follow those up.
Jim Shannon (Strangford) (DUP)
I welcome the Minister to his place. I know that he was vociferous on this issue when he was on the Opposition Back Benches, so I have absolutely no doubt that he will deliver on it.
Some 26 postmasters implicated in the scandal in Northern Ireland are worried and concerned. It is imperative that all postmasters feel that they can have an open and frank discussion with no fear of repercussion in the upcoming investigations, and there can be no further unwarranted delays. Can the Minister confirm that, as a priority, he will make sure that postmasters have access at every level to ensure that their concerns are addressed and that he will make every effort to take steps in the right direction? Thank you so much, Mr Speaker.
Justin Madders
What a surprise to see the hon. Member in his place today. I am sure that this will not be last time that we have an exchange across the Dispatch Box, but he does raise an important point. We absolutely agree that we need to make it as easy as possible for postmasters to raise their concerns and to get the justice that they have so long waited for.
Mr Richard Holden (Basildon and Billericay) (Con)
I congratulate you, Mr Speaker, on your return to your place, and the Minister on taking up his appointment.
Compensation is one part of this, but what victims of this scandal, such as Betty whom I met, want to see are truth and accountability. I am referring not just to Ministers, to whom my right hon. Friend the Member for North West Hampshire (Kit Malthouse) referred, but to those involved in the scandal. What can the Minister say to people in the Post Office and to Betty, who want to see those responsible in the Post Office properly held to account, as well as the compensation for their suffering?
Justin Madders
I thank the hon. Member for his question. He makes an important point. Justice is one side of the coin, but there is also accountability for what has happened. A lot of people want to see that: not just those directly affected, but everyone who has been outraged by the years of inertia and obfuscation that we have seen in this scandal. The purpose of the inquiry is to get to the heart of who knew what, who did what and who did not do what they should have done, and whether individuals should take some responsibility for their actions. I have no doubt that, when those recommendations are released, we will want to see some very swift action on the back of that.
Andrew George (St Ives) (LD)
I was privileged to be one of those MPs who, a decade ago, was campaigning on this issue in Parliament with the now Lord Arbuthnot and campaigning on cases in my constituency—people had been treated appallingly. Those people have not yet received compensation. If there is going to be any kind of delay in compensation to those who have suffered, is there any way that early, interim payments can be made to those who need the support now and certainly before too long?
Justin Madders
I thank the hon. Member for his question, and join him in praising Lord Arbuthnot’s work in this area. As of 31 May, £222 million has already been paid out in compensation. There have actually been significant interim payments as well. We understand that, while this is a very large scheme, it is important that we get early payments, so I assure the hon. Member that interim payments are a very large part of this programme.
Dr Kieran Mullan (Bexhill and Battle) (Con)
The legislation that we passed was a blanket measure. It might be clear to us who is or is not included, but for the individuals affected it will not necessarily have been clear. Will the Minister update the House on the progress that has been made in identifying them and writing to them to confirm that their convictions have been quashed?
Justin Madders
I thank the hon. Member for his important question. We have been working closely with colleagues in the Ministry of Justice to identify those people who are affected by the legislation, and they will be contacted in due course if they have not been already.