Post Office (Horizon System) Compensation Bill

Lord Beamish Excerpts

2nd reading
Tuesday 19th December 2023 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

I declare an interest as a member of the Horizon compensation advisory board. I rise to welcome the Bill and the reasoning behind it, as outlined by the Minister. I must say that the Minister is committed to ensuring that we make the scheme as fair and equitable as possible. As he said, it would have been unjust to have left the sword of Damocles that was the arbitrary deadline of next August hanging over the heads of potential claimants. It is right that the Bill is brought forward. I echo the hon. Member for Sutton and Cheam (Paul Scully) that we do not want to see delays in compensation, but, because of the trauma that individuals are involved in and the complexity, some cases may take longer than others.

May I, at this point, put on the record my thanks to the hon. Member for Sutton and Cheam? Having dealt with the issue for more years than I care to remember—and, I must say, having dealt with a succession of useless Ministers who literally accepted what their civil servants said and continued to parrot that, even when they knew that the Horizon system was at fault—it is a credit to him that he was the only one who grasped the situation and got to understand its complexities. I also welcomed the private chats we had on some of the issues. He is right that the scheme is not easy to implement, but he was willing to question things that were clearly wrong and to put it through. I would not want to make the Minister blush, but if people want an example of a Minister doing his job and having something to look back on and be proud of, they should look at his response to this matter. I do not want to downgrade the present Minister, who has picked up the baton and, as the poacher turned gamekeeper that he is, is following through to ensure that the scheme and justice are delivered for those individuals affected by Horizon.

As has been mentioned, I first got involved because of a constituent called Tom Brown, who came to my surgery. I say to any new Members in the House that if they ever get a case in a constituency surgery and think, “This sounds complex, but it just seems wrong,” they should dig into it and stick with it. Tom was a sub-postmaster in North Kenton in Newcastle. He had worked at other post offices before that, but he and his wife had bought a sub-post office in North Kenton for £150,000, which he saw as an investment not only for him but for his family’s future. He ran it with his wife; they had a convenience store, and it was successful until the Horizon computer system came along. Like many victims, he was given initial training on the system, but it came out in the inquiry that it was completely inadequate.

Not long after Horizon was installed, Tom started having shortfalls. If they were small, many people just made them up, but in his case they got to £85,609.03. He could not reconcile it, despite going to the helpline and saying, “Look, something’s wrong here.” The helpline just ignored him. In November 2008, two Post Office employees came along to do a branch audit, which is when the nightmare for Tom and his family began. He was accused of stealing the £85,000. Despite his efforts to explain the shortfalls in the system, no one listened, nor did they listen in the many other victims’ cases.

Tom had invested in property: he had his business, investment properties and his own house. He had the indignity not only of his name being in the local newspapers as someone who had stolen £85,000 but of having his home searched by the Post Office, looking—strangely enough—for the £85,000, as though he had it stuffed under the bed. The indignity of that is remarkable. We must remember that these individuals were pillars of the local community; people looked up to them and respected them in their communities—and that was suddenly all torn away.

In his witness statement to the inquiry, Tom describes the sensational media wildfire, which was disturbing for him and for his family. He is open in his statement that he considered suicide—sadly, we have heard that at least four people have taken their own lives. He did not because of his strong family. The irony of his situation is that when the Post Office prosecuted him, the case went to Crown court only to be withdrawn on the day it was heard. He was found not guilty of false accounting because no evidence was put forward. The judge said in his summing up:

“I’m sure you’ll be taking this further, Mr Brown”.

By that stage, Tom was left bankrupt. He was accused of stealing £85,000, his name sullied. That led to hardship not just for him but for his family. He had to sell his properties and his business, after it floundered. His son had to take him in and also got into financial difficulty, borrowing money to support his father, and they ended up in social housing in my constituency. The family were completely broken. I want to stress this aspect: we talk about the individual victim, but the effect on their families must be highlighted and compensated. Some family members need counselling because of the effects on them, and Tom’s witness statement to the inquiry sums that up well.

Sadly, Tom did not live to see the compensation he deserved, nor to see his name cleared and those involved in his case brought to justice; he passed away a few weeks ago. I add my condolences to his family. His name is still there with Alan Bates, who has been mentioned, and the others who fought this case.

Would we have got to where we are today without those people? No, we would not, because even when the Post Office knew that the system was flawed, it spent £100 million of taxpayers’ money defending the indefensible in court as a result of the litigation brought by Alan Bates and the rest of the 555. The tactic of the Post Office was very clear: it was to use public money—our money—to outspend the postmasters who had taken it to court. That was outrageous, given that it subsequently came to light, during the inquiry and also in court, that the Post Office knew that it did not have a leg to stand on. It was forced to settle out of court because it had run out of money, which was the intention of the Post Office and the Department that was in charge at the time.

Do we need to get this system moving? Yes, we do. Having been on the advisory board, I understand the complexities of the scheme. Would we start where we are starting now if we were starting afresh? No, we would not—but 60 people have already died, including Tom, and it is imperative now for us to try to get this compensation paid to their families and to the other postmasters. The hon. Member for Sutton and Cheam also said that we would not have started here. We now have the group litigation scheme, the historical shortfall scheme and the overturned convictions scheme. Is it too late to try to pull those three into one? I personally think it is, and I do not know what the Minister’s civil servants would do if we suggested it. In any event, I do not think that it is the way forward.

One thing that I do welcome is the appointment of Sir Ross Cranston as the final arbitrator in the process. If people are not happy about the levels of compensation they receive, there will be that final independent arbitrator. There has always been this point about independence. Do any of those involved trust the Post Office? No, they do not. Do I trust the Post Office? No, I still do not trust it, given the way in which it has handled this matter.

[Paul Scully]

The right hon. Gentleman is making a great speech, and he has got to the crux of the situation, by talking about trust. The postmasters have had plenty of words—20 years of seemingly reassuring words—that they cannot trust, and it is incumbent on all of us to act.

[Mr Jones]

I entirely agree, and I think that that is how the hon. Gentleman helped—in trying to cut through the words. But whatever I say, he says or anyone says, are these people ever going to trust the Post Office? In his statement to the inquiry, Tom said:

“I think the Post Office are the most corrupt organisation around.”

I have to say that I do not disagree. This was not about people making mistakes; in public administration, people do make mistakes. This was clearly a cover-up conspiracy and, I think, downright criminality on the part of certain individuals. I will return shortly to how we are to get justice in respect of those individuals, but the Bill is about compensation, and I think it important that we take this step forward.

I want to pay tribute to some of those who have kept the fire burning over the years, including Lord Arbuthnot —James Arbuthnot, who has been a tireless campaigner on this issue since he was in the House of Commons—Nick Wallis, and Karl Flinders of Computer Weekly. They have done great work in pushing the issue forward, and they need to be thanked for it.

I also want to raise an important point in respect of the schemes we have now. I did not think that new developments could come about, but they have. This is relevant to amendment 1, which I tabled but which was unfortunately not selected for technical reasons. Lo and behold, a few months ago I learned that there had been another scheme, which could almost be described as a son or daughter of Horizon but which preceded it. It was trialled in the north-east of England. The only reason I knew about it was that I was contacted by the son of a lady somewhere in the north-east—she does not want any publicity—who wanted me to come and see her. When I went to see her, I thought, “This sounds like a Horizon case but it can’t be because the dates are wrong.” Lo and behold, we now learn that 300 trials were done, mainly in the north-east, before Horizon. That lady will not get compensation. She was prosecuted and I understand that another case has now been found. This also came out at the inquiry. When all the publicity came out about Horizon, why did no one come forward and say, “By the way, do you realise we had another system on the go at the beginning and we prosecuted people under that system?”

I know the Minister is on to this, and I am certain that the advisory board is as well. There are potentially other people who were prosecuted because of another failed system that was not Horizon. That needs addressing as matter of urgency because there are people out there who are clearly innocent. I think the lady I have just mentioned could be described as having post-traumatic stress disorder. She was completely mentally scarred by the episode. If we can get justice for that individual and others, we should certainly do so.

[Jim Shannon (Strangford) (DUP)]

I commend the right hon. Gentleman for making that salient point. I am aware that there are many affected postmasters and families in Northern Ireland, including some in my constituency. What they are seeking is a timescale for when all postmasters in Northern Ireland—and, indeed, across this great United Kingdom—can expect to receive their compensation, and I hope that the right hon. Gentleman is going to ask for that now. Those in my constituency have not received any word about compensation yet. Does he agree that when the Minister sums up the debate, we want to be given the timescale for the compensation? We want to know that right away.

[Mr Jones]

Yes. We now have this Bill and we have got the compensation scheme moving, and I think we need to move very quickly to get the money paid out.

Another issue relates to overturned convictions. Nearly 900 people have been convicted, 700-odd through the Post Office. Some of them in Northern Ireland and Scotland were convicted under a different system. Some were prosecuted by the DWP, for example. I will not rehearse the arguments now, but only 93 of those convictions have been overturned and that does not sit right with me. Somebody asked me why people had not come forward, but they are never going to come forward. They have been so scarred and traumatised by the court process that they will never go anywhere near a court process again. We need to tackle that, and I will cover that when I speak to my amendment later.

I welcome this Bill. My final point is on responsibility. If this scandal had happened in the United States, which takes a very different approach to financial crime and misdemeanours, people would be in jail by now. The evidence is all there, and I accept that Sir Wyn is slowly prising it out of the Post Office, but there are individuals such as Paula Vennells, who, ironically, got a CBE in 2019 for services to the Post Office, even though she oversaw all that was going on. I have written on numerous occasions to the Honours Forfeiture Committee to get that taken off her, but I have had no answer.

If there is one broad lesson to be learned from this scandal by Ministers and future Ministers, it is that when the state does something like this that is so wrong, there should be no hiding place for anyone who has been responsible. Sir Wyn is doing a great job in his inquiry to unearth some of these things. Fujitsu has been mentioned. That is an organisation that definitely has some huge questions to answer.

I think there are two parts to this. First, we have to get the compensation paid. The Minister has committed to trying to put people in the position they would have been in if they had not been affected, which is what we need to do. Will the compensation ever fully compensate them for what they have been through? No, it will not—they will have a scar—but it will help. The other important thing is that the people responsible should be brought to justice and have their day in court. Clearly, they need to answer for it.

I finish with the final line of Tom Brown’s evidence to the public inquiry, at paragraph 89:

“I would…like to find out who was responsible once and for all and to see someone take accountability for the wrong doings of the Post Office.”

I could not have put it better myself.

--- Later in debate ---

[Kevin Hollinrake]

With the leave of the House, it is a pleasure to conclude this debate. We have heard insightful contributions from right hon. and hon. Members across the House, many of whom have championed this cause and campaigned for justice on behalf of postmasters for many years. I pay particular tribute to the right hon. Member for North Durham (Mr Jones), my hon. Friend the Member for Telford (Lucy Allan), the hon. Members for Jarrow (Kate Osborne), for Kingston upon Hull East (Karl Turner), for North West Leicestershire (Andrew Bridgen) and for Motherwell and Wishaw (Marion Fellows) and others, who have demonstrated the best of cross-party campaigning in the interests of those affected by this scandal.

I have addressed the House many times on the subject of the Post Office Horizon scandal, both as a Back Bencher and now as the responsible Minister, and I want to respond to the specific points raised in the debate. The shadow Minister who opened the debate, the hon. Member for Bethnal Green and Bow (Rushanara Ali), rightly talked about further delays. I want to stress that this is not about further delays, but about preventing an arbitrary date being set, so that people whose claim has not been submitted or is not at the stage where it has been completed or settled can still get compensation.

I say to the other shadow Minister, the hon. Member for Croydon Central (Sarah Jones), as I said in my earlier remarks, that the commitment is that we will get 90% of offers out in 40 working days. We are doing a number of things to expedite settlements and accepted claims, not least the fixed-sum award for overturned convictions. She asked about the number of people who have taken that route. For confidentiality reasons, we do not think it is right to state the actual number, but it is a significant proportion, so certainly it is a route that many people think is the right one for them to take. Obviously that is a matter for the individual, and claimants can pursue the standard full assessment process if they feel that is their best option.

Not everything is within our gift, and that is one of the frustrations that we have, because these claims can be complex and require legal input from the claimant’s side. It can take time for the claims to be compiled before they are submitted. That is one of the reasons why we think it is right to delay the long-stop date of 7 August next year.

The hon. Member for Croydon Central asked about the resources and about how we will expedite the settlements. She may be aware that we have recently committed to additional resources for the Post Office. Part of that is to increase the resources committed towards the inquiry, but another part is committed to compensation. We think all the resources are there to get this money paid out within the timeframes we have set out.

I pay tribute again to my hon. Friend the Member for Sutton and Cheam (Paul Scully) for all of the work he did on this scheme. It is perhaps a little bit ironic that I used to push him from the Back Benches and now he is pushing me from the Back Benches on a similar issue. He is a very sad loss to the Front Benches in this House; he did a fantastic job and he speaks with great authority on this subject. As he says, the best work he did in the Department he attributes to this particular area, so I thank him for all he has done.

My hon. Friend asks whether we need to extend this the long-stop date and why. It is very much a long-stop position. We want to get the payments out before 7 August but, as Sir Wyn Williams advised, this is the right thing to do. My hon. Friend also asked whether, if we were to start again, which I do not think is the right thing to do, we would do things in this way, with three different compensation schemes. I think Sir Wyn Williams said something very similar: we would not do it like that, but all together in one single scheme. However, we are not there and it is right to push ahead now with the work we are doing in this form.

The hon. Member for Strangford (Jim Shannon), who is not in his place, said that we need to go faster, not slower. We are not going slower; we are going faster, and that is what we are keen to do. The same issue was raised by the right hon. Member for East Antrim (Sammy Wilson), who rightly pushed us to make sure we are delivering this at pace. My hon. Friend the Member for Sutton and Cheam also talked about doing things at pace; “pace” is a word I use a lot in my Department—my officials will probably support that remark—so I totally agree with him. If I may say so, I think the pace in a Department should be dictated by Ministers, so it is my responsibility to make sure that the schemes are delivered at pace.

My hon. Friend wished the House a merry Christmas; I am pleased, and I think we should all be pleased, that 27 families have had convictions overturned and may be able to enjoy their Christmas a little bit more than previous Christmases. Their ability not only to receive compensation, but to move on and move away from some of the trials and tribulations that they have faced in getting compensation and getting justice, is welcomed by everyone in the House.

As always, I thank the hon. Member for Motherwell and Wishaw for the work she does on the all-party parliamentary group on post offices. She pointed out the very significant value that post offices have in communities. I could not agree with her more that the disclosure areas were unacceptable. That should not have happened and we made that very clear to Post Office management. I agree with her entirely on Fujitsu. Anybody who is shown to be responsible for the scandal should be held accountable, and that may also include compensation. We have stated that on the Floor of the House on a number of occasions. She refers to senior executives in terms of the inquiry sub-metric, having repaid bonuses voluntarily. Those are not something we would want to see in future. I also agree with her and others, including the right hon. Member for North Durham, about some of the people who have been instrumental in this matter outside this House. She referred to Dan Neidle. Nick Wallis, Karl Flinders and Tom Witherow have also been important contributors in ensuring that sub-postmasters get the justice they deserve.

I thank the right hon. Member for North Durham again for all his work and for his work on the advisory board. He talks about a sword of Damocles and is right to say that we are removing it. He speaks very movingly about Tom Brown and what happened to him: the indignity of having his home searched, hardship, bankruptcy, the impact on his family, and his reputation in the community. All were intolerable situations. He sadly passed away prior to receiving compensation. In my constituency, Sam Harrison, a sub-postmaster in Nawton, near Helmsley, went through a similar set of circumstances, certainly in relation to financial difficulty. She sadly passed away earlier this year without receiving compensation. There is a huge human cost, as well as a financial cost. I talked to the advisory board about potential counselling that might be made available to sub-postmasters. We also talked about restorative justice. Sir Wyn Williams has referred to that and it is something we are keen to look at.

The right hon. Gentleman mentioned a predecessor to the Horizon scheme in the north-east. If we are on the same page, I understand that was a pilot scheme for Horizon, so we are confident that our current compensation schemes can deliver outcomes and compensation for the individuals he refers to, but if he does not agree with that I am very happy to have a conversation with him.

[Mr Kevan Jones]

That is welcome, but I think the Minister knows my views on the advisory board. We need to try to find out exactly how many people were prosecuted and in what circumstances. It shocked me, and I think the Minister too, that even with all the publicity about Horizon, no one actually said, “By the way, we had this scheme.” If it had not come out in the inquiry, or I had not intervened to see that individual in the north-east, would it just have been forgotten about?

[Kevin Hollinrake]

Those people will not be forgotten about. I am very happy to work with the right hon. Gentleman and the advisory board on any matter he raises with me. I think we are very like-minded on all the issues he has brought to us so far and we are keen to deliver solutions where we think they are required. I agree with him about Sir Ross Cranston. I worked with Sir Ross from the Back Benches. He came in with the review of the Lloyds-HBOS scheme and did a fantastic job. I also agree with him on holding individuals to account. Whether it be Lloyds, HBOS or Post Office Ltd, I do not think we will ever stop these things happening until we hold individuals to account. He talked about Paula Vennells’ CBE. I think Sir Tom Scholar, the head of the relevant body on the forfeiture of honours, has said that we need to wait until the end of the inquiry to consider that, but it should certainly be looked at. I completely associate myself with the comments of the right hon. Gentleman’s former constituent Tom Brown in relation to holding people to account.

In response to the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones), yes we are allowing ourselves extra timescales but we do not want to use them. On the Christmas deadline, I think we are on the same page on this. It was Christmas this year for the Horizon shortfall scheme. We have now delivered offers to 100% of those people who have applied through that scheme, which meets our objective. Nevertheless, many of those cases are complex and not everything is in our gift to ensure that claims are put in promptly so that they can be dealt with quickly.

I thank the right hon. Member for East Antrim for his kind words. I commit absolutely to giving regular updates to the House. I am very happy to come to speak to hon. Members about this, both on the Floor of the House and by other means. There are regular updates about compensation payments on the gov.uk website. I agree entirely with him about accountability and the need to ensure that the guilty are held responsible. He is right to say we will be rigorous with anybody who is shown to be guilty, including at Fujitsu. He is also right to say that there are some things associated with a tremendous scandal that we can never compensate people for. That is why we are here, keen to deliver a final resolution to these problems.

My Department and I continue to work hard to ensure that those affected by the Horizon scandal receive the full and fair compensation that they are owed. The Bill is just part of the action that the Government are taking to defend the interests of postmasters. I commend it to the House.

Question put and agreed to.

Bill accordingly read a Second time; to stand committed to a Committee of the whole House (Order, this day).

Further proceedings on the Bill stood postponed (Order, this day).