Shared Parental Leave and Pay (Bereavement) Bill

Kevin Hollinrake Excerpts

Committee stage
Wednesday 20th March 2024 Public Bill Committees

[Tracey Crouch (Chatham and Aylesford) (Con)]

I congratulate both colleagues—the hon. Member for Ogmore and my hon. Friend the Member for Broxtowe—on bringing forward this vital piece of legislation. It is interesting that there is a public perception about what we do in this place, and this Bill is exactly what people do not see. It has come about from a surgery appointment that showed a clear gap in shared parental leave. I congratulate both Members on the important work that they have done on this issue. I hope that those of us who are introducing the Bill never have to go through those tragic circumstances, but if we do, we should be comfortable and confident that we and our constituents will benefit from it.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

It is a pleasure to serve with you in the Chair, Mr Paisley. The Bill will provide bereaved parents with the support and protection that they need during one of the most devastating periods of their lives. Although we estimate that the number of people affected by these circumstances is thankfully low, the emotional strain and physical toll of caring for a new child while grieving the loss of a partner is simply unimaginable. I am pleased that the Government are able to support this important piece of legislation.

On Second Reading, the ambition of the Bill gained cross-party support in the House, and I am pleased to hear a similar sentiment being expressed today. Since Second Reading, we have discussed our plans for the Bill with stakeholders and we look forward to continuing to work with them. I also thank my right hon. Friend—sorry, my hon. Friend the Member for Broxtowe; it is only a matter of time. His tenacious campaigning efforts were a key factor in getting the Bill to this stage.

[Theo Clarke (Stafford) (Con)]

I echo the Minister’s sentiments on the cross-party support for the Bill. I particularly commend my hon. Friend the Member for Broxtowe. I remember when he came to see me several months ago to tell me about the case of his constituent in relation to my birth trauma inquiry. I was pleased to support this Bill, and I spoke in his related debate in Westminster Hall on his ten-minute rule Bill. I am delighted that the Bill has been taken forward and that we are finally closing this legal loophole to support constituents like his.

[Kevin Hollinrake]

I congratulate my hon. Friend on her campaigning work on a slightly separate but related issue. She does a fantastic job and we are making great progress. This place is no stranger to repetition, but it shows that persistence pays, and my hon. Friend the Member for Broxtowe has done a fantastic job pressing for change over a number of years, so he deserves the accolades he has received today.

I am glad to be working with the hon. Member for Ogmore, who has been incredibly collaborative and constructive in his discussions. I am sure he will deliver the Bill in good time and I thank him for his hard work and approach.

It was necessary for the Government to move a motion in the House to issue an instruction to allow the Committee to consider amendments to the Bill that would otherwise be out of scope. The instruction was debated and approved in the House on 5 March. Let me briefly summarise the changes to the Bill’s scope that it permits. First, we felt it was necessary to broaden the Bill’s scope to enable us to consider paternity leave as well as shared parental leave as the appropriate vehicle to deliver the entitlement. Secondly, the Bill’s scope was expanded to allow the Committee to consider the inclusion of bereaved fathers and partners who have their child through other routes, such as adoption or a surrogacy arrangement.

On the amendments tabled by the hon. Member for Ogmore, new clause 1 provides many of the key provisions of the revised Bill. It establishes the legal method—paternity leave—that will be used to deliver the entitlement, and it expands the group of parents who can be included in the entitlement. I am pleased that we have been able to extend the Bill’s scope to include the parents of children through domestic adoption and to give us the power to include in regulations those who are parents through surrogacy and international adoption. No parent with a newly born or adopted child should be in a position in which they do not have access to statutory leave to care for their child in the event of the death of their partner.

Crucially, the new clause requires regulations to be made that set out that a surviving parent can take this kind of leave even if they do not meet the continuity-of-service provisions, and that enable a surviving parent to take paternity leave even if they have previously taken a period of shared parental leave prior. The new clause also enables the regulations to make provision for the tragic situation in which the child also dies. The regulations can allow a surviving parent to remain on leave for a period after the child’s death because the Bill sets aside the requirement that in such circumstances parents must use their leave to care for the child or support the other parent.

New clause 1 also gives the Secretary of State the power to make regulations that enable a parent to take keeping-in-touch days while they are on paternity leave, and the power to make regulations to give enhanced redundancy protection to parents who take paternity leave in such tragic circumstances, after they return to work. The provisions in the new clause are essential to deliver the intent of the Bill, so I agree with them. As Members will have seen, the provisions of new clause 1 will replace those in clause 1, so it is necessary to leave out clause 1.

Amendment 5 changes the long title to accurately reflect the Bill’s amended contents. I agree that it is necessary to ensure that the long title accurately reflects the Bill’s contents.

Like the hon. Member for Ogmore, we intend to vote against clause 2, which contains provisions that we do not consider to be necessary, including a wide-ranging Henry VIII power, a power to make transitional and savings provisions, and a stipulation that an affirmative procedure will apply to regulations. To clarify for the Committee, such a stipulation is not necessary in relation to the substantive powers because the powers in the 1996 Act that the Bill amends are already subject to the affirmative procedure. As is standard practice, the power to make commencement regulations is not subject to a parliamentary process.

Amendments 3 and 4 are largely technical. Amendment 3 refers to the statutory instrument necessary to commence the Bill, while amendment 4 is consequential on new clause 1. I agree that the amendments are necessary.

Let me address the point that my hon. Friend the Member for Broxtowe made about pay. Again, he has been a doughty campaigner on this issue. I understand his concern, but we do not believe that it is right. Currently, no statutory pay entitlements, including statutory maternity pay, are available on the first day of a job. This is because employers, apart from small businesses, are required to contribute towards the cost of statutory parental pay, as well as meeting the costs associated with their employee’s absence from work, and new employees have not yet had time to make reasonable contributions towards their employers’ businesses. But I am sure that will not stop my hon. Friend campaigning on the issue in future.

[Alicia Kearns (Rutland and Melton) (Con)]

We come to this place to be a voice for our constituents, and I thank the Government for supporting this Bill—including the amendments that may or may not be voted for or against.

On that point around pay, I gently make the point to the Government that I fully endorse the view of my hon. Friend the Member for Broxtowe that there should be pay associated with this to support those families. I cannot imagine the agony of losing your partner and being left—hopefully, at least—with your baby and then facing the injustice of finding out that you do not have the leave not only to live through and recover from your trauma, but to care for that baby. This is important. We come to this place to right wrongs, and, today, the two hon. Gentleman, who I call my friends—the hon. Member for Ogmore and my hon. Friend the Member for Broxtowe—have done that. I thank them both for righting those wrongs. This is why we come to this place.

[Kevin Hollinrake]

My hon. Friend makes some very strong and worthwhile points, and I thank her for those.

To conclude, I would like to thank the Committee members for their valuable contributions. This Bill is an important extension of support and protection for parents facing one of the most challenging situations of their lives. The Government take pride in endorsing this private Member’s Bill, aligning our efforts with an unwavering commitment to bolstering workers’ support and to cultivating a high-skilled, high-productivity, high-wage economy.

I thank all hon. Members, but I particularly thank my hon. Friend the Member for Broxtowe and the hon. Member for Ogmore for working with me to develop this Bill into a piece of legislation that will work effectively for parents and businesses alike. I look forward to working with them during the future stages of the Bill.

[Chris Elmore]

I start by thanking the Minister most sincerely. There is a process with private Members’ Bills —perhaps I am issuing state secrets from the Government and Opposition Whips Offices—where handout Bills are worked through to ensure that private Members’ Bills can be delivered. This was not one of those Bills. I say this sincerely: the Minister, and indeed his officials, have been incredibly constructive in working with me to ensure that we do not let the perfect get in the way of the good, as the right hon. Member for Staffordshire Moorlands—I call her my right hon. Friend—says a lot in her Procedure Committee work, although I do not think that she invented the phrase. This Bill is that; we have made a significant step in the right direction, and, throughout the course of employment rights legislation, these things often started as leave, and then moved to the next step, and so on and so forth. Indeed, I do not think that shared parental leave was in legislation until the Cameron Administration, and I think that paternity leave was invented by the Blair Administration. These things move and change throughout history, regardless of party politics.

That brings me to my broader point. I pay tribute again to the hon. Member for Broxtowe, because he has been a huge advocate for his constituents, but he has also been very good in lobbying me—a skill in itself—to convince me to take on the Bill. However, as I said on Second Reading, I do not want this Bill to help many people, because the whole point of it is to support people in their darkest hour, and nobody—Conservative, Labour, Scottish National party or Plaid Cymru—would want anybody to face this horror: the joy of being a parent and the unimaginable loss of losing a partner. Being a parent should be nothing but joy—and exhaustion, particularly when they are first born. It should not be about just blind grief. I am trying to understand how that feels, but I cannot imagine it, and I hope that I never have to face it. The numbers are small—and thank God for that—and I hope that they always remain small.

I would like to place on the record, although I mentioned them briefly, the Minister’s officials. I have had an insight into the work of the civil service over the past few weeks, and all I can say is that I am hugely impressed by it. The work that they have done has been wonderful. I also thank my staff, particularly my researcher, Alex Williams, who has spent many an hour working through this Bill, including with civil servants—I thank him for that. It is always nice to get one’s staff in the Hansard records, as it is not always something that we manage to do.

I thank all Members for their contributions. It is right to say that this House works best when it works cross party. These are the things that are not seen. This is genuinely a Government and Opposition Bill, and that is how these Bills should be; they should be about cross-party working as often as we can.

To move to a technical point, I reiterate the importance of this piece of legislation, and I hope that as we move to our decisions, under your stewardship, Mr Paisley, we will get the noes and ayes in the correct place—we will see how this works out. I hope that the Bill can proceed successfully to the next stage, to Report and Third Reading. It is my intention to vote against clause 1; I understand the procedural reasons for that. Good luck, Mr Paisley.

Post Office (Horizon System) Offences Bill

Kevin Hollinrake Excerpts

2nd reading
Wednesday 20th March 2024 Commons Chamber

[Jonathan Reynolds]

I thank the right hon. Member for making those powerful points, which reflect on the nature of the evidence that was given. One of his hon. Friends has already made the point about the role of technological, computer-based evidence in the legal process. To be frank, there is also the Post Office’s approach to the data as it saw it, which I assume it believed to be a way of unveiling wrongdoing, rather than questioning that data. Most of our constituents ask, “How could the number of convictions have gone from five or six a year to 50 or 60 without that being flagged in some way?” Clearly, the powers that be—at the time—thought the data was revealing wrongdoing, rather than necessarily revealing something going wrong.

We can see from the contributions we have already had that all Members participating in today’s debate and who will participate in the Bill’s future stages are mindful that what we are saying is not only important, but might be referenced in future considerations. In that vein, let me clearly state that this legislation, although far from ideal, is the only option on the table for us to resolve this horrible injustice. But let me further state that any incoming Labour Government would never use this kind of action again. There are exceptional circumstances to this case that make it unique, rather than it being a moment to set a precedent for handling any future injustices.

The Post Office Horizon scandal took place over decades, and there is at least a decade’s worth of investigations that demonstrate the falsehoods behind many of the convictions made against sub-postmasters. That bank of evidence will only grow from the independent inquiry led by Sir Wyn Williams. The challenge to righting this wrong is not a lack of clear evidence, but a sheer volume of cases that is overwhelming the appropriate route to justice through the Court of Appeal. I lament that our justice system is under such strain, and it would be remiss of me not to point out that a better serviced Criminal Cases Review Commission could have avoided the extraordinary step that we must now take.

In addition, we must also recognise that a cohort of sub-postmasters with convictions are understandably reticent to take part in another process in a criminal justice system that so badly failed them the first time around. For the purposes of the historical record, an important qualification for taking this step is the scale of cross-party support that the legislation is attracting. I have raised that point with the Minister before, and I believe it to be an essential safeguard.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

May I thank the shadow Secretary of State for his cross-party and collaborative approach, which has brought us a significant step forward? I recognise the points he makes on the scale of the problem, which is why we have to act in this way. It is probably the least worst option for how we deal with this.

May I push back gently on his point that we have only started to act significantly since the TV drama? We welcome the public outcry that came as a result of the drama, the new attention that has been focused on the issue and the 1,200 new claimants who have stepped forward, but I push back because it is important that the public know that we were acting prior to the drama. We implemented the shortfall scheme in 2020, the inquiry back in 2020 and the GLO compensation scheme in 2021. The Horizon Compensation Advisory Board was put in place early in 2023, and the fixed-sum awards of £600,000 were put in place in autumn last year. We also had the overturned convictions and the exploring of different ways to do that on a mass basis. All these things were in place by the time of the Post Office (Horizon System) Compensation Act 2024, which we considered in December last year, and which the shadow Secretary of State and I spoke to during its consideration. Much work has been undertaken. We very much welcome the new impetus we have all got from the attention that the drama has brought about.

[Jonathan Reynolds]

I am always keen to hear from the Minister. I thought I was fair in making the point he raises in my introductory remarks. I simply make the point that the constitutional significance of legislation like this requires a level of public consent. The statement that the Prime Minister made in January, just after Prime Minister’s questions, would not have been possible without the sheer breakthrough in public consent and the demand for change and for justice that came from that. I will always be fair to the Government’s Ministers, and I point out even to some of their critics that we were dealing with things. We had the legislation that colleagues had worked on. It is fair to say there was less interest in some of that in the Chamber before we had the television programme, but let us be frank that we had the impasse of people not wanting to go back to the process. The estimate we had at the time was 10 to 15 years. That is what brought us to that point, and we have to recognise that, as well as paying tribute to the role that arts and culture can play in bringing things to an audience, which we should welcome.

Finally, I think I speak for everyone in the Chamber when I say that in no way does anyone take lightly what we are proposing to do today. This action is unprecedented, and we should make every effort possible to ensure that such action never again has to be considered.

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[Marion Fellows]

I thank the right hon. Gentleman for his intervention. I am surrounded by lawyerly people and I am not a lawyer. In fact, I sat in a room last night for a briefing where I was surrounded by lawyers and even the lawyers were agreeing that they could not agree on the right way forward. The right hon. Gentleman is absolutely correct, and the Scottish Government will do that, but they cannot do it until we see what happens with the Bill as it is brought towards enactment and until we can take into consideration all the amendments that may be necessary for Northern Ireland. That will create a delay. Yes, the Scottish Government can—I cannot say they will, because I am not a Member of the Scottish Parliament or the Scottish Government—and it is possible for the Scottish Parliament to pass a Bill in three days, but it must be aligned with the exoneration Bill passed here. Otherwise, Scottish victims will not be treated equitably and fairly.

On 10 January, the Minister spoke in this place to, I believe, the hon. Member for Edinburgh West (Christine Jardine) and said he saw no reason at that point why there could not be UK legislation. At an Interministerial Standing Committee on 12 March, the Secretary of State for Levelling Up, Housing and Communities said that he saw no reason why that could not happen. Yet a few days after that the Bill arrived in Scotland with no mention of Scotland at all. It is the Scottish Government’s belief that the Bill could be amended to take into consideration the differences in legal terms. For example, amendments would be needed to bring about alignment on embezzlement and to cover all the different crimes, if you like—well, not crimes, because the sub-postmasters did nothing wrong—so that the Bill would apply in Scotland. The Bill could clear the decks of all the things sub-postmasters were charged with and convicted for, so it is all possible. The issue is one of timing, with sub-postmasters in Scotland being told, “Okay, you’ve waited, but you’ll have to wait longer.”

In this place, and right across the work I have done over the past few years on the Post Office, there has always been cross-party agreement on getting things sorted out for the victims. As the hon. Member for Stalybridge and Hyde said, that is the point of the whole thing. It is about the victims. It is about what has happened since “Mr Bates vs the Post Office” was broadcast. I sat with my daughter-in-law, who is herself a lawyer—I don’t hold that against her—and she kept saying, “Is this true, Marion? Is this true?” and I had to say that yes, it was.

[Kevin Hollinrake]

I thank the hon. Lady once again for the all the work she does. As I have said to her on a number of occasions, our officials are working together on a weekly basis and I have met my counterparts in Scotland on this issue. She will acknowledge that the UK Parliament is taking a political risk. This is unprecedented and unpopular in some quarters. Does she not accept that, as politicians, there are times when we have to stand up and accept the political responsibility and accountability for doing the right thing in our own jurisdictions, just in the way the right hon. Member for Orkney and Shetland (Mr Carmichael) said?

[Marion Fellows]

I agree with the Minister—of course I do—but let us think back to the victims. Scottish victims should not have to wait any longer than victims across the rest of the United Kingdom. If the Scottish Government were to expedite a Bill in the Scottish Parliament without knowing exactly where this Bill will end up—already today there has been talk of amendments to it to help Northern Ireland—then that would not be right either.

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[Paul Scully]

I did not, but the issue is worth looking at. This is a human scandal, and it is not just about the postmasters who were directly affected. I am not sure how we start to unpick that as it gets wider and wider, but I hope and trust that the Government will reflect on it as we do the wider learning.

[Kevin Hollinrake]

I was tempted to intervene on two of the interventions I heard, but that is impossible here. It is certainly possible that the person who had the contractual relationship with the business concerned, such as a small post office, could submit a claim to the Horizon shortfall scheme, which could include amounts that should be paid to individuals who worked for them so that they can be compensated through that route.

Given that we are looking at public sector or quasi-public sector organisations, it would be dangerous to assume that there is a problem with governance. As my hon. Friend said, from the Back Benches I dealt with a number of scandals that involved private sector organisations, such as Lloyds and the Royal Bank of Scotland—we saw years of obfuscation around similar kinds of problems. We should not jump to conclusions. We should probably let the inquiry report first, and have a debate from there.

[Paul Scully]

My hon. Friend makes a really good point. To follow on from the intervention from my right hon. Friend the Member for Haltemprice and Howden, it is difficult for us as parliamentarians, and doubly difficult for Government Ministers, to speak with authority on behalf of a public organisation—rather than the private sector, which we do not speak on behalf of—without necessarily having all the facts, because there is only so much we can drill into.

Obviously, we want to right the wrongs of the past and make sure as best we can that the people’s situations are restored so that they can have a future for themselves and their families. There is also the case of the Post Office itself. The Post Office still has more branches than the banks and building societies put together. I know that there have been closures in certain areas—that is a whole other debate, perhaps for Westminster Hall—but none the less, the Post Office has a massive impact on people’s lives, especially in rural communities. We must not forget that when we are looking at the Post Office, its brand and its overall aim. This is not a reflection on the current management or anything like that. We have to give the Post Office a future.

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[Mr Jones]

They were hiding, yes, because of shame and things such as that. It is only now that we realise what a massive miscarriage of justice this was that people have had the confidence to come forward. This Bill will help with that.

I shall come off Capture, because I think the Minister has got my point, but I return to those cases that have already gone to appeal. I do not criticise the Government on this, but we must find a system for dealing with those few cases that have gone through. It is no good the Court of Appeal hiding behind the fact that they have gone through, because, as the hon. Member for Sutton and Cheam has said, new evidence has come out of the inquiry that was not available to the courts at the time. We cannot just leave those people hanging—I cannot remember off the top of my head how many individuals there are, but there are not that many.

[Kevin Hollinrake]

Let me just clarify that point. A total of 1,200 people have come forward since the TV dramatisation. Seven people have taken their case to the Court of Appeal and been heard, and six have been refused leave to appeal, which makes a total of 13 in that cohort.

[Mr Jones]

What a fine research assistant the Minister is! He is right: the number is in single figures. Let us look at those cases. Let us see whether we can move forward on this. I am not criticising the Government for not including those individuals. I understand why they are not in the Bill, but we need to look at them. There are things that came out of the inquiry that would have changed the outcome in some, but perhaps not all, of those cases. If we do not look at them, those people will be left outside the remit of the Bill.

On the territorial extent of the Bill, I think the case was made earlier in relation to Northern Ireland. I see no reason why the Bill should not include Northern Ireland. We have cross-party support for it in Northern Ireland, and, as I understand it, the Executive are on board as well. We need to recognise that in Committee. I have to say to the hon. Member for Motherwell and Wishaw (Marion Fellows) that I have less sympathy with the idea of including Scotland in the Bill. Not because those individuals should not get justice—they should—but because the issue is different in Scotland. There are, in fact, two issues. First, there is the legal position: the way things are prosecuted in Scotland is very different from how it is done in the UK. Furthermore, there is a mechanism to do it, so the Scottish Government just have to get on and do it. I accept what she is saying about waiting to see what we do, but they would need cross-party support in the Scottish Parliament if that were to go forward. I do hope, however, that some amendment on Northern Ireland is brought forward in Committee, and I would certainly support it.

Finally, let me talk about the notification of individuals. Reference was made earlier to record keeping, which was not brilliant at the Post Office. We have to try to find “reasonable steps”, as the Bill says, to notify individuals. We need to look at that, because, again, some of these cases will be legacy cases. Sadly, some people will have passed away before they were able to get justice. Perhaps we need to say how we get to those cases that are possibly more difficult to get to than others.

To conclude, the Bill is long overdue, which makes this a historic day. I think of the woman I sat in front of in her council flat in the north-east of England, whose life has been ruined for the past 20 years, and who has had daily trauma because of the injustice and financial heartache that she and her family have faced. With the Bill, she will finally get justice; if that is the one thing I do in my time in this House, it will make me very happy.

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[Mr Carmichael]

I do not think it is unfortunate, but highly fortunate and deliberate, that we are in the UK, but we will save that debate for another day. The compensation can and will be paid on a UK-wide basis. Given the timescale that the Government have outlined so far, we would expect the convictions to be quashed on the basis of this Bill by the middle of July. That gives the Scottish Parliament time to meet the same timescales, so that victims in Scotland have their cases quashed by that time.

[Kevin Hollinrake]

The right hon. Gentleman is making some important points about the way the prosecution systems work in different parts of the UK, which we must take into account. On the point by the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) on paying redress, the key thing is overturning the conviction. Once that conviction is overturned, wherever in the UK, that individual will have immediate access to the redress scheme wherever they are in the UK. There is no hiatus, as he described it.

[Mr Carmichael]

I am grateful to the Minister for that. Those who are not convicted will have access to compensation through the historic shortfall scheme—a process available to them at the moment.

[Kevin Hollinrake]

The Bill relates only to overturning convictions. There is a discussion about territorial extent, which I understand and am happy to continue to discuss. The three compensation schemes—the Horizon shortfall scheme, the group litigation order scheme and the overturned conviction scheme—are all UK-wide, so that whatever detriment is experienced, wherever they are in the UK, there is no delay to compensation. There is no difference, in terms of compensation, between one part of the UK and another. We are keen to expedite it wherever it is in the UK and we have work to do.

[Mr Carmichael]

I do not really need to answer that, so I will take the hon. Lady’s intervention.

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[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

For Members of the House, the wider public and, most of all, the victims of this horrendous scandal, today’s Bill cannot come soon enough. The day that the convictions are finally quashed, redress is finally paid and those victims can get on with their lives cannot come soon enough. The Bill will quash relevant convictions of individuals who worked, including on a voluntary basis, in post office branches and who suffered as a consequence of the Post Office Horizon IT scandal. It will quash, on a blanket basis, convictions for various theft, fraud and related offences during the period of the Horizon scandal in England and Wales.

The Bill is an exceptional response that recognises the constitutional sensitivity and unprecedented nature of the situation. The Government are clear that given the factually exceptional nature of the case, the legislation does not set a precedent for the future relationship between the Executive, Parliament and the judiciary. The scale and circumstances of the prosecutorial and investigatory misconduct means that a rapid approach is needed to deliver long overdue justice, while respecting the separation of powers and delicate constitutional balance.

I first spoke on the matter from the Back Benches some years ago, in the context of other scandals involving the Royal Bank of Scotland and Lloyds Bank, after a gentleman called Paul Marshall, a barrister involved in the cases, wrote to me drawing parallels between the Post Office Horizon case and the banking scandal. It was back in March 2020 that I first spoke about the issue and Lee Castleton’s tragic case. Because of the scale of the injustice, the depth of the damage and the despair, and the unacceptable delays in delivering justice, we must act in this exceptional manner.

I will touch on points raised in contributions to the debate. I thank the shadow Secretary of State, the hon. Member for Stalybridge and Hyde (Jonathan Reynolds), and the shadow Minister, the hon. Member for Bethnal Green and Bow (Rushanara Ali), for their collaborative approach. I join them in thanking one of my predecessors, my hon. Friend the Member for Sutton and Cheam (Paul Scully), on the tremendous job he did. We all wish him well in whatever he chooses to do in his new life, but I remind him that he still has work to do in this place because we have much work to do.

I gently push back on some of the points made by the shadow Minister, who said that the TV drama had stimulated the work that has gone on in recent weeks and today. We are public servants and we should respond to public outcry, so I welcome the new attention focused on the issue by the general public, the media and the House. However, I remind hon. Members and, most importantly, the victims that we put many measures in place to try to deal with the matter, not always as successfully or as quickly as we would have liked: the Horizon shortfall scheme and the inquiry, which started in 2020; the group litigation order compensation scheme; the Horizon compensation advisory board, on which the right hon. Member for North Durham (Mr Jones) sits so effectively; and the £600,000 fixed-sum awards for those whose convictions had been overturned, which was put in place last autumn. The exploration into how we might overturn convictions more quickly began some months before the TV dramatisation came to our screens. Indeed, the Post Office (Horizon System) Compensation Act 2024 assigned a deadline date that proved difficult for some of the victims.

The shadow Secretary of State pointed to possible service level agreements, in response to issues raised by the Business and Trade Committee about timings for compensation. As he and the shadow Minister know, there are service level agreements in the current compensation and the group litigation order compensation schemes that say there will be a response to 90% of final claims submitted within 40 days. We are hitting 87% against that metric, so we are making progress. We are considering such agreements in elements of the new scheme and other schemes, so I will come back to the House about that.

The hon. Member for Stalybridge and Hyde raised the point about Northern Ireland, as many other Members have, and we are taking that very seriously. We are sympathetic to the issue, particularly as the Assembly is newly formed. The requirement for public consultations in that jurisdiction may delay things, and we will bear that in mind in our deliberations.

The shadow Minister quite rightly raised the point about the impact of this not just on the victims, but on the victims’ families, their children and their spouses. Indeed, terrible things have happened to many of those families, including break-ups and suicides. We have all witnessed on our TV screens the extent of this problem. We will certainly consider mental health support for the affected individuals.

My hon. and learned Friend the Member for Bromley and Chislehurst (Sir Robert Neill) talked about a sunset clause. Interestingly, following his intervention on a sunset clause, three other legal opinions on a similar matter did not all agree with his point. The key thing is that all convictions are quashed the day this legislation comes into effect, which should be in July. Irrespective of the fact that we may not have identified somebody in the list of people whom we will write to following the passing of this Bill, their conviction will have been quashed. If they come forward to self-certify and we look at their case, that conviction will have already been quashed; we just need to mark the record.

The right hon. Member for Orkney and Shetland (Mr Carmichael) spoke about political accountability, which I shall come back to a bit later, because he raises some very important points. My right hon. Friend the Member for Haltemprice and Howden (Mr David Davis) said that this matter should have been dealt with in the courtroom. I think that we would all have preferred to see that. I have described this process in the past as the lesser of two evils. We must acknowledge that the first of the 983 convictions were overturned in 2021. Thus far, only 102 convictions have been overturned. That pace of progress cannot be countenanced, which is why we have taken this particular approach. I thank him, though, for his kind words on my work, but I reiterate that the Secretary of State has been hugely supportive of everything that I have been asked to do and that I wanted to do in this space. The same applies to the Prime Minister and the Chancellor of the Exchequer and many other Ministers right across Government.

Let me turn now to the hon. Member for Motherwell and Wishaw (Marion Fellows), for whom I have a great deal of time and with whom I have spent a great deal of time working on this issue. Her work on the all-party group on post offices is also invaluable. I fully understand her points about Scotland. She wants to ensure that her legislation works simultaneously with this legislation. We believe that that can happen in Scotland. There are no barriers as such with Scotland in the way that there are potentially with Northern Ireland. We also must bear in mind that the Lord Advocate tends to have a different opinion as to whether this is the right way to go about things. In taking this route, we have had to make some difficult political choices. One is to exclude cases that have been heard by the Court of Appeal. That is the decision that we had to take here—as I say, these were very difficult choices. The point about political accountability is important, which is why we decided to use this objective criteria route. The hon. Lady’s objective criteria would have to be different. For instance, Scotland has a different prosecutorial system, so the legislation cannot be identical. There are differences whichever way we look at this, so I am sure that this debate will continue.

[Ian Paisley]

I thank the Minister for giving way. He knows that we have huge admiration for the way that he has tried to wrestle his way through these issues. At the end of these proceedings, I intend to lay an instruction to the House motion. Is that necessary? Can the Minister tell us now that he will take this on and include Northern Ireland in the Bill?

[Kevin Hollinrake]

I understand the hon. Member’s point. I can tell him from this Dispatch Box that it is something on which we will continue to have dialogue. I have talked to his colleagues today and yesterday. In fact, I met the First Minister, the Deputy First Minister and the Justice Minister yesterday to discuss these matters. They raised some interesting points that we need to take into account. I am very happy to keep those conversations ongoing, so I will happily have a further conversation with him after this debate.

[Chris Stephens]

The Minister is showing his customary politeness and kindness. He has outlined the discussions with Northern Ireland. The main issue is how we get a solution that satisfies everyone across these islands, so will he also have those discussions with the Scottish Government, particularly around the territorial issue, and will he say something about Asda employees in Scotland who are also caught up in this?

[Kevin Hollinrake]

I absolutely give the hon. Gentleman that assurance. We want everything to happen simultaneously. Our ambition is to get the legislation passed by July. If people choose the fixed sum award route, we can pay compensation rapidly. They have two choices of route to take. The £600,000 can be delivered very quickly—literally within weeks of passing the legislation. We want to pass the legislation by July; we could be paying compensation as quickly as by August. Exactly the same thing can happen in Scotland if the Scottish Government effect the legislation at the same pace. My officials are working with officials of the SNP-led Government in Scotland on a weekly basis to try to ensure that that is the case. I have met with my counterpart in the Scottish Government to talk about this issue.

I did not quite get the hon. Gentleman’s point about employees. He might want to intervene on me again, so I can address it properly.

[Chris Stephens]

A number of Members have mentioned, as I have, the particular issue of Asda employees in Scotland. Has the Minister thought about that?

[Kevin Hollinrake]

Employees generally are an issue, because they do not have a contractual relationship with the Post Office, which is required to enter the compensation scheme, but if the company itself did have one it could make a compensation claim that could then be passed on to that individual. I am very happy to discuss individual cases with the hon. Gentleman, or with other Members.

I pay tribute again to all the work of my hon. Friend the Member for Sutton and Cheam. I agree that this was a case of human failure as well as technological failure, and that the wheels of justice are moving too slowly. That is why we have stepped in in this way. I am always grateful for the work of the right hon. Member for North Durham, not least on the Horizon compensation advisory board. He has made some important recommendations, which we have adopted. He gave a four-legged analogy about the person I am: he called me more shire horse than show pony, which I take as a compliment. I would describe him in a four-legged way as well: he is a cross between a terrier and a rottweiler, and he is highly effective in the way he approaches this issue.

The right hon. Gentleman asked about convictions relating to pilot versions of Horizon. That is why we have set the date at 23 December 1996. That is the first point of the roll-out of an application called Pathway, which was a predecessor Horizon application. We think that the legislation, and therefore the redress schemes, capture—if I can use that word—cases that relate to the pilot schemes in clause 8.

As the right hon. Gentleman knows, we look at the Capture system slightly differently. Capture is a stand-alone spreadsheet rather than a network computer system. There is no remote access, for example. The key thing is that what we are doing here is exceptional and unprecedented. We have the body of evidence because it has been before a court. Part of the reason the court made its decision in 2019 was based on the Horizon issues, as it put it. We do not have that body of evidence with Capture. We are keen to talk to him to ensure that we look at the evidence. That conversation will continue.

The right hon. Gentleman talked about the power to make consequential provision. We do not see that as giving us the ability to include another group of people; there are different reasons why that power is in the Bill. It is for matters that are a consequence of the Bill, which we do not think is the right vehicle to include people, for example, who have been affected by the Capture system. As I say, we will continue to discuss that.

As I said earlier, we understand the arguments about Northern Ireland, and we will continue to engage, as we will with other Members of this House. In terms of reasonable steps, the process is in development. It is about marking the records and writing to individuals. When we have passed the legislation, we will write literally that day, or the next day, to those individuals to say, “You’re conviction has been quashed,” and we will give them details about how to claim compensation.

[Mr Kevan Jones]

I know that the Minister is committed to ensuring that everyone is contacted. What about the legacy cases—when people have passed away? Will someone try to contact their estates, for example?

[Kevin Hollinrake]

Those are challenging issues. The key thing—I hope the right hon. Gentleman takes this in the right way—is that what we are doing here to quash convictions does not require people to come forward. When the conviction has been quashed, we will contact the most relevant person in that context. Those people can take forward a claim in exactly the same way, and it will be considered in exactly the same way, as any other claim. The estate, the families, can claim compensation.

[Mr Jones]

I agree with the Minister, but I think this needs to be given some thought. Perhaps the advisory board might look at legacy cases in which people have passed away, because those entitled to compensation might not come forward. We might have further discussion about that.

[Kevin Hollinrake]

I am very happy for us to look at that, and to work with the right hon. Gentleman and the advisory board. I take this opportunity to pay tribute to him, Lord Arbuthnot, Sir Chris Hodges, and Professor Richard Moorhead for their work in this area. We will continue to work closely alongside the right hon. Gentleman.

My hon. Friend the Member for North Norfolk (Duncan Baker) recognised the work of people other than me on this matter—not least the Secretary of State, the Prime Minister and the Chancellor. I recognise that he is the only serving postmaster in this place, so we always listen carefully to what he says. Like him, we encourage people to come forward to claim compensation.

The people not included in the legislation—those who have been convicted as a result of prosecution by the DWP—can still appeal in the normal way, and I encourage them to do so if they feel that there are grounds for that. My hon. Friend asked about Fujitsu and the quantum it is due to pay. Our view has always been that we should let the inquiry conclude and determine responsibility. We will then know the extent of the compensation bill, and that will be the right time to have a conversation about contributions, for which Fujitsu has already accept a moral responsibility; we welcome that. Although the Post Office has had a chequered past in this regard, I believe that it has a very bright future, and we are keen to ensure that it does. We should always keep that in mind.

I understand what the right hon. Member for East Antrim (Sammy Wilson) said about the territorial extent of the Bill. As I said, I met the First Minister, Deputy First Minister and the Minster of Justice for Northern Ireland yesterday, and I will continue to do so. We are determined to ensure that measures are brought forward as quickly as possible in all areas of the United Kingdom. The right hon. Member makes a compelling case about the need for public consultations in his jurisdiction. We are aware of that. There are 26 cases in Northern Ireland, and we are keen to ensure that they are overturned as quickly as possible. We will continue work to ensure that that happens.

The right hon. Member for Orkney and Shetland talked clearly about ensuring that prosecutors are accountable for their role. Decisions were taken in Scotland. He was right to say clearly that a legislative consent motion does not offer the same level of parliamentary accountability, and I think we should all reflect on that. His final words were “accountability makes a difference.”

The hon. Member for North Down (Stephen Farry) talked about his preference for the measures to be UK-wide. We understand that; we have had several conversations and will have many more, I am sure. I understand his point about the risks of judicial review and of delays to public consultation. He feels that he makes an overwhelming argument. We will keep those conversations going.

I concur with the shadow Minister, the hon. Member for Bethnal Green and Bow, and echo her tribute to Alan Bates, Jo Hamilton, Lee Castleton, journalist Nick Wallis, campaigner Dan Neidle, another journalist Tom Witherow, Lord Arbuthnot, Karl Flinders and many others, including many Members of this House. We pay tribute to them for their work. We recognise the profound impacts that the Horizon scandal has had on those who were falsely accused. It has taken too long to get to this point, and our ambition is to get this legislation through both Houses by July and compensation paid to the victims by August. Through this Bill, we will exonerate those who were so unjustly convicted of crimes that they did not commit and provide fair redress as swiftly as possible. I commend it to the House.

Question put and agreed to.

Bill accordingly read a Second time.

Post Office: Horizon Inquiry Participation Costs

Kevin Hollinrake Excerpts

Tuesday 19th March 2024 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

In October 2023, I announced our intention to provide funding of up to £150 million, plus any contingency that may be required, to support the Post Office fully participating in the Post Office Horizon it inquiry and to support the delivery of redress to postmasters.

Since then, those costs have increased and the Government have decided to provide access to contingency funding, and award a further £40 million to ensure Post Office can continue to deliver this important work. The Government remain determined to address the wrongs of the Horizon scandal.

In accordance with the Subsidy Control Act 2022, the Department for Business and Trade’s assessment of the funding’s compliance with the subsidy control principles was previously referred to the subsidy advice unit. A report was published, which concluded that the Department had

“conducted an assessment which considers the subsidy’s compliance with the subsidy control principles in line with the Statutory Guidance”.

[HCWS355]

Simpler Corporate Reporting

Kevin Hollinrake Excerpts

Tuesday 19th March 2024 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

Yesterday, the Government announced our first set of intended regulatory changes as part of our commitment to make the non-financial reporting framework smarter, simpler and better for business. These changes focus on reducing regulation on small and medium-sized companies, ensuring that reporting requirements are proportionate, so that those companies can focus on their growth and delivering for their customers.

The Government intend to lay legislation this summer to lift the monetary thresholds that determine company size by 50%, in order to take account of inflation and to reduce burdens on smaller businesses, a change that we are able to make following the UK’s withdrawal from the European Union—see table. Overall, the effect of these changes is that 5,000 large companies would be reclassified as medium-sized and access more proportionate reporting; 13,000 medium-sized companies would be reclassified as small companies, enabling them to benefit from exemptions to statutory audit requirements as well as the ability to file simpler accounts; and 113,000 small companies would be reclassified as micro-sized companies, which will allow them to file simpler accounts—a benefit for more than one in every four businesses that are currently classified as small.

Draft National Minimum Wage (Amendment) (No. 2) Regulations 2024

Kevin Hollinrake Excerpts

Monday 18th March 2024 General Committees

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

I beg to move,

That the Committee has considered the draft National Minimum Wage (Amendment) (No. 2) Regulations 2024.

It is a pleasure to serve with you in the Chair, Mr Hosie. The purpose of these regulations is to raise the national living wage and national minimum wage rates on 1 April 2024. They were laid on 13 January and approved by the House of Lords on 12 March.

We are delighted to say that this uplift will see the achievement of one of our core pledges: for the national living wage to reach two thirds of median earnings by 2024. The target was set with the intention of ending low hourly pay, in line with the OECD definition, for those eligible. Now, on the 25th anniversary of the minimum wage, that target will be met—a genuinely historic moment.

We have achieved that on time, in spite of the difficult global conditions of the past few years—the huge economic impact of the pandemic, the shockwaves of the war in Ukraine and recent cost of living challenges. That is something that the Government, and every parliamentarian, should be proud of. Indeed, we should also be very proud of the contribution from businesses, who have obviously borne the greatest burden of paying it.

I will turn shortly to the detail of the regulations, but I will first thank the Low Pay Commission. We have once again accepted all of its recommendations for the national living wage and national minimum wage rates. Its diligent approach to conducting detailed analysis and carrying out a range of stakeholder engagement has continued to pay dividends, enabling the Government to strike the right balance in giving millions of workers a well-earned pay rise, without harming businesses—the lifeblood of our economy—or adversely impacting the balance of the UK’s labour market. I extend my thanks to all of the commissioners, including Bryan Sanderson, whose term as chair ended around the turn of the year. I look forward to continuing to work closely with the Low Pay Commission, including the newly appointed chair, Baroness Stroud.

Turning to the rates themselves, once these regulations have secured parliamentary passage, the national living wage will increase on 1 April to £11.44 an hour—a record 9.8% cash increase of £1.02. As well as hitting our goal of seeing the national living wage reach two thirds of median earnings, we are also delivering on our pledge to extend eligibility from workers aged 23 and over to those aged 21 and over. By including 21 and 22-year-olds in the national living wage, these regulations will put more money into the pockets of more workers.

Given that younger workers remain more susceptible to economic shocks, the national minimum wage rates for those under 21 years old will remain in place. However, in making its recommendations, the LPC noted that employment among workers aged between 16 and 20 has been strong in recent months, and that the previous large increases to the national living wage have widened the gap to those younger workers entitled to the national minimum wage at lower rates. We are therefore pleased to deliver a significant uplift to the other national minimum wage rates.

These regulations will increase the rate for 18 to 20-year-olds to £8.60 an hour—a rise of 14.8%, or £1.11. The minimum wage for workers above school leaving age, but under 18 years old, will increase to £6.40 an hour—up by £1.12, or 21.2%. The same applies to the apprentice national minimum wage rate, which applies to apprentices aged 19 and under or in the first year of their apprenticeship. The accommodation offset, meanwhile, which is a daily rate, will increase by 9.8%, or 89p, to £9.99.

The Government published a comprehensive impact assessment when these regulations were laid, including an equalities assessment. Hon. Members will note that this impact assessment has once again received a green, fit-for-purpose rating from the Regulatory Policy Committee. I also note that the net cost to business is £217 million per annum.

[Chris Stephens (Glasgow South West) (SNP)]

I am very grateful to the Minister for showing his customary politeness in giving way. In the impact assessment, I do not see any reference to UK Government employees. Does the Minister know how many UK Government employees will benefit from the provisions he is laying out today?

[Kevin Hollinrake]

I do not know that figure, but the hon. Gentleman raises an interesting point. He is not just talking about the overall number of Government employees—I do not know that number either—but the ones that are on national living wage. I am very happy to look at that, and I will be interested to hear his reflections later. Perhaps he will enlighten us on what he believes that number to be.

We estimate that three million workers will receive a direct pay rise as a result of this uprating. The increase to the national living wage will represent a boost of more than £1,800 to the gross annual earnings of every full-time worker on the national living wage compared with this year, and a boost of £8,600 compared with 2015, when the policy was first announced. To put that in context, when this year’s uprating comes into effect in April, the national living wage will be approximately 70% higher than in 2015. Meanwhile, the consumer price index has increased about 30%, so it has increased at over twice the rate of inflation.

Finally, I remind hon. and right hon. Members of one further important change we have introduced to the minimum wage regulations. The Low Pay Commission recommended that minimum wage exemption for live-in domestic workers, which the Employment Appeal Tribunal had found amounted to indirect discrimination against women, should be removed. Due to legislation we passed earlier this year, it will be removed from the statute book from 1 April, protecting more of the UK’s vulnerable workers from exploitation.

We recognise that businesses and workers alike remain keen to hear about the future of the minimum wage. I can therefore confirm that we will be publishing the 2024 remit to the LPC shortly. The remit will ask it to provide recommendations for the national living wage and national minimum wage rates to apply from April 2025. The Government and the LPC will continue to monitor closely the impacts of these increases on the economy, and carefully consider our future ambitions.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

It is a pleasure to see you in the Chair this afternoon, Mr Hosie. I thank the Minister for outlining the changes these regulations make to implement the new rates of minimum wage, as recommended by the Low Pay Commission, to which I also pay tribute for its sterling work. I will refer to some of the findings from its annual report during my contribution.

I also—he should really steel himself, because I do not do this often—congratulate the Minister on delivering the promise to match the minimum hourly rate to two-thirds of median wages. I think that has been eight years in the offing, but we have got there. In achieving this figure, the Low Pay Commission recommended a rise that represents the largest increase in cash terms since the introduction of the minimum wage. That is clearly welcome news for those working in minimum wage jobs, as is the extension of the entitlement to all those over the age of 21. It represents a 9.8% increase for those older than 21, with the hourly rate of the main rate—the so-called national living wage—now at £11.44 an hour. That equates to an annual increase of just over £1,800 for someone working a 35-hour week, and clearly we in the Opposition welcome that.

While I understand the Government are keen to celebrate this year’s levels, I would caution them not to be too overconfident, because anyone who has taken the time to study the Low Pay Commission’s report will see that much more needs to be done before work in this country pays in the way that it should. There are clear warning signs in the report about the persistence of insecure work and in-work poverty.

No one here will need reminding that the rates of inflation we have had to endure in recent years have thrown workers—and, indeed, everyone in this country—into a cost of living crisis. Inflation rates peaked at 11.1% in October 2022 and have been hovering around 4% and 5% even now. Between April 2021 and April 2022, household bills doubled, and the price of essential goods and services increased at a magnitude not experienced since the 1970s and 1980s. The Low Pay Commission report notes that energy, food and transport costs were at the “highest rates recorded” since the CPI series began, way back in 1989. Even in September last year, when inflation was beginning to come down, energy prices were still increasing by 5% and food inflation was 12.2%.

Last year I raised concerns that, in the face of such high levels of inflation, the minimum wage uplifts were not large enough to prevent a real-terms cut to the rate. That has been confirmed by the Low Pay Commission report, which states that the past two years’ increases in the minimum wage have in fact represented a cut in real terms due to inflation. I am pleased that the commission is confident that today’s increases will restore the value of the minimum wage in real terms, but I am also aware that the increases do not undo the previous two years, when pay did not keep up with the cost of living and hardship has endured as a result.

[Kevin Hollinrake]

As I said, the national living wage has outstripped inflation twofold during the period since its implementation. At one point in time, the Opposition talked about a national living wage of £15 an hour. Is that still the hon. Gentleman’s policy? Is that his personal policy or the Opposition’s policy?

[Justin Madders]

That very interesting question is some way outside the remit of the regulations. Of course, if the Minister wants to talk about what our policies will be, he should advise the Prime Minister to call a general election—but perhaps we are not quite there.

My question for the Minister is about the inflationary spikes of the last couple of years. What mechanisms are being looked at to ensure that the minimum wage increases at a rate that reflects those in real time? The evidence gathered by the Low Pay Commission on how workers have been affected is truly sobering. In Belfast, the commission found that supermarkets had introduced payday pantries, which provide food for workers in the run-up to payday. A care worker in Manchester told the commission,

“Most of my colleagues are using food banks.”,

and stated that that was not a new, post-pandemic problem. Such examples chime with responses in trade union surveys. In autumn 2022, Unison found that 17% of respondents had skipped meals and that 20% had asked for a loan from family or friends. In May 2023, USDAW found that 46% of its members surveyed were worried about food bills, 15% had turned to food banks and 42% had missed meals in the last year to pay for bills. If anything, the situation has been getting worse. The Joseph Rowntree Foundation’s yearly poverty report states that the proportion of households in poverty with at least one working adult increased from 61% in 2021 to 64% in 2022. The poverty rate across the country as a whole is now more than one in five, and poverty has not fallen for 20 years.

It is worth saying a few words about why, despite the Minister’s comments, minimum wage increase have not eradicated in-work poverty, which is what we would like to see. Of course, I commend the Government for reaching their 2016 pledge to increase the minimum wage to 60% of median wages by 2020 and to two thirds of median wages by this year. Indeed, the impact has been that the number of employees on low hourly pay has fallen consistently; the fall since 2015 is estimated to have been about 20%.

However, the graph on page 62 of the Low Pay Commission report reveals that on two issues we still have an awful long way to go. It is hard not to be struck by the large disparity between men and women in terms of low pay—a point I shall return to—and the persistence of low weekly pay as opposed to low hourly pay. That instructive graph shows that increasing the minimum wage floor is only one of the tools needed to tackle problems in the labour market, and that it has largely left unaffected the issue of low pay for those on weekly earnings. There is clearly an issue about the number of hours people are working.

The Low Pay Commission annual report highlights the wide gap between men and women. Consistently since 2011, roughly 15% of men in employee jobs have been on low weekly pay, despite the increases in the minimum wage. The percentage of women on low weekly pay is double that of men, at roughly one in three. That has fallen gently since 2011, when the rate was around 41%, but that large disparity is still there. Will the Minister say whether there are any plans to deal with that gender pay gap and the question of hours worked?

To adequately address the problems in our labour market, we have to consider not only the number of hours but the quality and insecurity of work. Citizens UK has estimated that there are 6.1 million workers currently trapped in insecure forms of work, 3.4 million of whom are on low pay. That amounts to 19% and 11% of the total workforce respectively on low pay. Low pay is not an inherent condition for those in insecure work, however; those on low pay are around five times more likely to be in insecure jobs.

It is noted in the Low Pay Commission’s report that those insecurely employed struggle to get adequate hours, still receive late shift notices and are on zero-hours contracts. Respondents noted that workers in sectors such as hospitality had to take on multiple jobs to obtain full-time hours, which brings the challenge of having to juggle their availability in order to be accessible for both.

In its fieldwork, the Low Pay Commission found that workers continue to struggle to get contracts that reflect their actual hours worked. It was also noted that employers are still allocating shifts with as little as a day’s or just a few days’ notice, with some workers interviewed even stating that they had had shifts cancelled on the day they were meant to be in work. That is clearly a problem that is not going away. I ask the Minister this: how is someone supposed to plan for the future when they do not know how many hours they will work from week to week or month to month? What can a worker do if they are told they are surplus to requirements on a particular day when they might have already paid out for childcare or transport costs? Such practices erode the gains that we have made on the minimum wage.

As I say, I will not be entirely negative—the Minister would not expect me to be so. Positive steps have been made this year. We particularly welcome the removal of the 21 to 22-year-old age category. That measure was found to have broad support among those contacted by the Low Pay Commission. But as I mentioned last year, we are sad to see the Government continuing to support age discriminatory bands for those over the age of 18. Why should someone’s age determine their pay? A young adult is unable to go to their landlord and demand lower rent or to tell the cashier at the supermarket that they should have a discount because they are under the age of 21. Their bills are no cheaper than anyone else’s, yet for some reason we expect young people to make ends meet on lower pay.

That is accentuated by the fact that the rates have grown more slowly for younger workers. The gap between the main rate and the 18 to 20-year-old rate has grown massively since the Conservative party came to power in 2010. The Low Pay Commission report shows how the 18 to 20-year-old rate hovered around 85% of the value of the adult rate throughout Labour’s time in office. It then fell to below 80% between 2011 and 2013 and has continued to fall since 2015.

The minimum wage rate now for those aged 18 to 20 is just over 70% of the adult rate—around 15% lower than it was under the Labour party, rubbing salt into an already unjust situation. I appreciate that the Minister has referred to an above-rate increase for 18 to 20-year-olds this year, but is that part of a concerted plan and strategy to bring back the differential that existed under the Labour Government?

Eligibility is only half the battle. Unfortunately, entitlement to a minimum wage does not translate directly into securing that rate of pay. Enforcement is key and the right to be paid a minimum wage remains an important part of the enforcement universe. Questions, therefore, ought to be asked about the effectiveness of enforcement, as too many workers still report being underpaid.

Data from the annual survey of hours and earnings shows that, despite the total number of people reporting being paid less than the minimum wage having fallen since 2019, last year 365,000 workers were still being underpaid by their employer. As a share of the minimum wage coverage, that has increased since 2019, at a rate of 23.4%. That means that of those who earn on or around the minimum wage, around a quarter of them are not actually receiving it. That is certainly something that we need to see more action on.

From what we have seen from the Low Pay Commission’s report, workers in certain sectors are impacted more than others. I spoke last year in the same debate about the impact in the social care sector and raised the findings that Unison had shared with me about the exploitation of domiciliary care workers. I mentioned then that 73% of those workers were being underpaid. They were not being paid for the travelling time. I also stated that record keeping by employers was found to be way below the standards expected and that the complexities of those pay calculations made it incredibly difficult for employees to establish whether they had in fact been underpaid.

It was therefore pleasing to see that the Low Pay Commission had dedicated some space in its annual report this year to discussing those issues. It noted that the amount of arrears that His Majesty’s Revenue and Customs recovered for non-payment of the minimum wage

“pales into insignificance when compared to the average amount of arrears that Unison secures”

for social care workers—well done to the trade union Unison, but should it not be HMRC’s job to recover arrears and ensure the minimum wage is paid properly in the first place? Is it the case that HMRC is unable to properly decipher the records, or is it going lightly on social care employers?

--- Later in debate ---

[Kevin Hollinrake]

I thank hon. Members for their contributions. The passage of the regulations will provide a boost to the incomes of 3 million workers, rewarding many of the lowest paid people in society for their contribution to the economy and protecting them from exploitative wage levels.

The shadow Minister, the hon. Member for Ellesmere Port and Neston, talked about the increases in the living wage. There is not just an increase above inflation over that period of time; it is more than double the rate of inflation. I invite him to again clarify exactly where he thinks it should go. On whether we will raise the expectation above two thirds of the medium wage, that is again something that I am sure we will set out in our manifesto. From a personal perspective, having talked to many businesses around the country, as we have done today at our SME Connect event, I know that many, particularly in hospitality, social care and other sectors, are finding life difficult right now. We should always bear in mind the needs of businesses and try to strike a balance between the impacts on businesses and the benefit that people get from higher wages.

The hon. Member raised a point about the gender pay gap. I note that, according to a recent report by the Office for National Statistics, the gender pay gap has

“decreased across all major occupational groups”

over the past two years, and the accountancy firm BDO said it decreased over the past six years, so that gap is definitely narrowing. He raises the valid point that more women are on the national living wage, but of course they benefit disproportionately from an increase because there are more of them. I do not think that any of us will rest until that gap is narrowed further. The hon. Member talked about predictable hours. We have legislated on predictable hours in line with the Taylor review. I think the actual term is the right to request predictable terms and conditions.

[Justin Madders]

On the Minister’s point about how the minimum wage has increased over the past eight years, why is it still the case that so many people are in in-work poverty? How many people have actually made that request for predictable hours under the legislation?

[Kevin Hollinrake]

There has been a significant decrease in the number of people in absolute poverty—millions of people since 2010 and 400,000 fewer children in absolute poverty, which we all welcome. As I said before, in pushing the national living wage as high as we have done, we are putting burdens on businesses. We want to ensure that we strike a balance, and that is our concern with this. We always take into account the concerns of employers as well as workers.

[Sir Desmond Swayne]

I entirely accept the point the Minister makes with respect to the definition of poverty, but the hon. Member for Glasgow South West makes a fair point in drawing attention to the number of people, particularly those employed by Government, who are claiming benefits notwithstanding being paid the minimum wage. It behoves Government to make some analysis of the extent to which the taxpayer is subsidising low wages, albeit one of the principal concerns drawn to my attention by small businesses is every increase in the minimum wage.

I accept that this is a very difficult equation to have to deal with, but I have always suspected that the former Chairman of the Work and Pensions Committee, Frank Field, was right in his assumption that universal credit, like tax credits before it, was actually just subsidising a low-wage economy that would not otherwise exist. There are clearly costs that are not worth incurring here.

[Kevin Hollinrake]

My right hon. Friend is right to say that part of the rationale behind the national living wage is to ensure that wages that employers pay are not being subsidised. The total cost of the welfare system is around £303 billion, some of which is a result of the issue he raised. To me, that is wrong and that is one of the reasons why we would like to see the national living wage increased. Nevertheless, we do not want to see that at the detriment of jobs in our economy.

There is still a balance to be struck on making sure people have the opportunity for predictable hours. That is covered in the legislation we have introduced. I understand that the policy of the hon. Member for Ellesmere Port and Neston is that anybody who has been in work for 12 weeks and is on a contract can request those hours in terms of as a permanent position. I think that is the policy that the Opposition are going to introduce. It will be interesting to see what impact that will have on employers, particularly employers of seasonal workers.

There is a balance to be struck between business and workers. I point out that there are 4.2 million more jobs in our economy than there were in 2010. That is a huge success story. There are 1.2 million fewer people unemployed and looking for work. That is a huge achievement. Some of the policies that Labour always tend to bring forward end up costing jobs. Every single time we have had a Labour Government, unemployment is higher at the end of their term than it was at the start.

[Justin Madders]

Is the Minister aware that an election is about to be called, because he has spent the last couple of minutes talking about Labour policies rather than the statutory instrument? If he is so convinced that our policies are bad, why won’t he let the public decide?

[Kevin Hollinrake]

I am purely responding to the points that the hon. Gentleman raised, to try to make him understand there is a balance to be struck in the economy between jobs and pay. That is the balance we are trying to strike.

The hon. Gentleman and the SNP spokesman, the hon. Member for Glasgow South West, made points about enforcement, which we take very seriously. We have doubled the compliance budget between 2015-16 and today to £27.8 million. We have ordered employers to reimburse £100 million to 1 million workers. We take this very seriously.

The naming and shaming scheme was suspended during covid. I understood why, but I was very keen to reintroduce it. It is the principal deterrent. I reassure the hon. Member for Ellesmere Port and Neston and other members of the Committee that, whenever we are about to do a naming round, we write to all the employers and tell them that they are going to be named. We get a lot of push-back, and we push right back again. There is no excuse for not paying the minimum wage. We have named a total of 3,200 businesses since 2013, including more than 500 just last month.

The hon. Gentleman raised the point about the vacancy in the Low Pay Commission. We are actively seeking candidates for that; if anybody is out there listening, I am very happy for them to come forward. I am very confident that new chair Baroness Stroud will do a fantastic job.

The SNP spokesman said that he wants a higher living wage, which I completely understand. He is very willing to nail his colours to the mast, unlike the Opposition, about where he thinks that should be, but I gently push back to him as well on the balance we need to strike here. The hospitality sector in Scotland is struggling as well as ours, and others are too. We must make sure we get that balance right. I have to say that in Scotland the failure rate in hospitality is even worse, being 30% higher than it is in England. That is partly down to the fact that Scotland has not passed on the rates money for those hospitality businesses, as has been done in England. The average pub in Scotland is £15,000 a year worse off because of that policy.

[Chris Stephens]

Surely, the big problem in the hospitality industry is the fact that worker after worker is being discriminated against in that industry. Zero-hours contracts are rampant—people turn up for a shift and they are told the shift has been cancelled. Surely that is the big problem. The Minister is not seriously defending bad employers, is he?

[Kevin Hollinrake]

I would never do that; as a former employer myself, I would never do that. However, I do not accept the picture that the hon. Member paints. The hospitality sector is a fantastic sector in this country, with many good businesses and many good employers. For him to trash the reputation of the sector in that way, saying that zero-hours contracts are “rampant” in the sector—I think that he should just check his language. That sector does a fine job under very difficult circumstances, and the circumstances are far more difficult in Scotland.

Regarding the Low Pay Commission, the hon. Member made the point about younger workers on lower pay. That is a very fair point; he raises it time and again. It is our position and the position of the Low Pay Commission that younger people are more susceptible to a weaker labour market. That is why we have different rates. I declare my interest—I have daughters of that age who earn the lower rates of the minimum wage and I am very happy that that is the case, because I would rather that they had a job than no job at this point in time.

The minimum wage and the national living wage are floors, not ceilings. If good employers pay more, and many do, clearly we welcome that.

I will just conclude—

[Chris Stephens]

Before the Minister concludes, can he answer this question about UK Government employees? How many of them are on the national minimum wage? Can he say whether the Government have a plan to deal with that situation?

[Kevin Hollinrake]

As I said before, I do not know the answer to that question; if the hon. Gentleman wants to put down a written question on the subject, we can give him an answer to it by separate means.

This debate is an important reminder of the good that Government can achieve—a sentiment that I am sure will be echoed by Committee members. I thank the Low Pay Commission once again for its advice this year, which has been as expert as ever, and I commend the regulations to the House.

Question put and agreed to.

Resolved,

That the Committee has considered the draft National Minimum Wage (Amendment) (No. 2) Regulations 2024.

Draft Economic Crime and Corporate Transparency Act 2023 (Consequential, Supplementary and Incidental Provisions) Regulations 2024 Draft Economic Crime and Corporate Transparency Act 2023 (Financial Penalty) Regulations 2024

Kevin Hollinrake Excerpts

Thursday 14th March 2024 General Committees

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

I beg to move,

That the Committee has considered the draft Economic Crime and Corporate Transparency Act 2023 (Consequential, Supplementary and Incidental Provisions) Regulations 2024.

[The Chair]

With this it will be convenient to consider the draft Economic Crime and Corporate Transparency Act 2023 (Financial Penalty) Regulations 2024.

[Kevin Hollinrake]

It is a pleasure to serve with you in the Chair, Ms Vaz.

The first set of regulations were laid before the House on 30 January 2024, the second on 19 February 2024. These regulations form part of a series of secondary legislation needed to effectively implement the Economic Crime and Corporate Transparency Act 2023, which I will refer to as “the 2023 Act”. The measures effectively form the basis of a civil penalty regime and offer data- sharing help to ensure that we can fight economic crime.

The 2023 Act is a landmark piece of legislation, which demonstrates the Government’s commitment to tackling economic crime. As I have stressed on many occasions, it will bear down on kleptocrats, criminals and terrorists who abuse our open economy, will significantly strengthen the UK’s reputation as a place where legitimate business can thrive, and will drive dirty money out of the UK.

Passing the 2023 Act was of course only the first step on the journey to make these reforms a reality. We now face the task of designing and implementing the many new processes and procedures at Companies House, underpinned by a substantial programme of secondary legislation that consists of some 50 statutory instruments.

The first of those instruments has been approved by both Houses, which means that I am glad to announce that the first of the 2023 Act’s reforms has already taken effect. Companies House has started to cleanse the register and quickly remove names and addresses that have been used without consent. Going forward, Companies House is turning its attention to register entries that it knows to be problematic and is beginning to remove what it has already identified as manifestly fraudulent filings.

For example, last week there were media reports of hundreds of rogue filings at Companies House, totalling approximately 800 “satisfaction of security” forms. I am pleased to say that, thanks to the registrar’s new powers, all of these fraudulent filings have been taken down swiftly by Companies House. That would not have been possible prior to 4 March.

Although that is already a major improvement, there is much more work to be done. That is why we are here today to debate the next set of regulations in the reform programme.

I will first address the financial penalty regulations. Currently, obligations in the Companies Act 2006, which I will refer to as “the 2006 Act”, relating to the functions of the registrar are enforced primarily through the criminal justice system. The only civil penalty regime that Companies House currently operates under the 2006 Act is the accounts late filing penalty regime, where a company automatically incurs a penalty for failing to file its accounts on time. That regime will remain unaffected by these regulations.

The 2023 Act sets out that the registrar may impose a financial penalty as an alternative to criminal prosecution where the registrar is satisfied beyond reasonable doubt that a person has engaged in conduct amounting to a relevant offence under the 2006 Act. In turn, this instrument sets out the procedure for the imposition and enforcement of financial penalties.

If the registrar suspects that a person has committed a relevant offence, she may issue a written warning giving them at least 28 days to make representations about their conduct. If the registrar is satisfied beyond reasonable doubt that the person has committed a relevant offence, she may issue a penalty notice in writing to that person, giving them 28 days’ notice to pay the penalty. The instrument sets out that financial penalties imposed by the registrar may be fixed, a daily rate or a combination of both. The penalties will be based on the severity of the offence, up to a maximum total of £10,000. In certain cases, more than one penalty can be imposed. This flexibility allows proportionate and effective targeting of those who commit an offence.

The instrument gives the registrar the power to vary or revoke financial penalties on a case-by-case basis —for example, if new information comes to light that aggravates or mitigates any offence. The instrument also sets out the grounds for appeal and the court’s powers in relation to the appeal. This adds to the tools available to the registrar to promote compliance and maintain the integrity of the UK companies register. It means that the registrar will now have the discretion to choose to pursue a financial penalty or to pass over to law enforcement to consider criminal sanction. It is important to note that the 2023 Act allows that, where a civil financial penalty is imposed on a person, it can contribute to that person being disqualified from acting as a UK director.

All of this means that we are striking the right balance between deterring non-compliance and not unduly burdening small business. Companies House’s new intelligence hub will also strengthen the registrar’s role in fighting organised crime. The hub will use data science to identify patterns and threats of economic crime on the register. Via new data-sharing powers, Companies House will proactively share its analysis and intelligence with law enforcement partners and supervisory bodies. That will ensure that evidence of organised crime can be pursued by the most appropriate agency.

This instrument makes minor changes to the Register of Overseas Entities (Penalties and Northern Ireland Dispositions) Regulations 2023. These technical changes ensure consistency between the two financial penalty regimes.

As of 11 March 2024, 30,614 overseas entities had registered with Companies House. A further 857 overseas entities had notified Companies House that they had disposed of all their interests in land before the register opened. That is a very good rate of compliance, as Companies House estimates that 10% of the entities originally in scope are dissolved or struck off. Many of these entities are in the process of being restored to their respective register, and Companies House has been working with overseas jurisdictions to ensure compliance with the requirements.

Companies House has taken robust action against the entities that have failed to comply with the requirements. As of 11 March, more than 400 penalty notices had been issued, with penalties totalling more than £20 million. That includes cases in which Companies House has received representations and appeals that are ongoing.

The next phase in the compliance process is imposing charges against land held by overseas entities where penalties remain unpaid. I will provide a progress update when we debate the next set of regulations relating to the register of overseas entities, which we will lay in Parliament in the coming months.

The other of the two instruments before us today is the Economic Crime and Corporate Transparency Act 2023 (Consequential, Supplementary and Incidental Provisions) Regulations 2024, which make minor consequential amendments to the 2006 Act and the Economic Crime (Transparency and Enforcement) Act 2022. They also introduce minor technical changes to eight pieces of secondary legislation. These regulations ensure that the changes made to the 2006 Act will also apply consistently to the law governing other business entities registered in the UK where that is possible. For example, this lifts restrictions on the use and disclosure of certain data by the registrar, allowing her to share that data more widely, and particularly with public authorities for purposes connected with the exercise of their functions.

In conclusion, I emphasise that the regulations are a further step towards effective implementation of the 2023 Act. I hope that Members will support them. I commend both sets of draft regulations to the Committee.

--- Later in debate ---

[Kevin Hollinrake]

I thank Committee members for their valuable contributions to the debate. The shadow Minister asked about resources; the Government provided £63 million to start the work at Companies House on the change from having a dumb register to having a proactive registrar who maintains the integrity of the register. Also, £20 million was provided last year through the economic crime levy, which will be one of the future sources of funding. The key area for funding is the uplift in the registration fees and annual filing fees at Companies House. It used to be £12 to register a company; it is now £50. It used to be £13 to lodge an annual return; it is now £34. We think that provides Companies House and the Insolvency Service, which is the enforcement body for such matters, with the extra resources needed, and hundreds more people will come as a result. It will also fund things such as the intelligence hub, which is hugely important.

The hon. Member for Glenrothes might want to alert Companies House about the address that has been used improperly. Companies House should then deal with that, and can do so much more quickly as a result of the new powers.

[Peter Grant]

I am sure it will come as no surprise to the Minister to hear that Mr Barrow has already done that. We look forward to that company being removed from the register quite soon. One of the things that I found interesting is that the address used is not the company’s registered address.

[Kevin Hollinrake]

I am happy to talk to the hon. Gentleman offline about that particular case, but any Member of this House or member of the public can alert Companies House about incorrect filings. As I say, as a result of what we have already done, that can be acted on much more quickly.

The hon. Gentleman talked about disqualification, and yes, absolutely, penalties can, as I said in my opening speech, contribute to a decision on disqualification. The penalties are civil penalties, but where the registrar feels that the conduct or offences are sufficiently serious, they can pass that on to the relevant prosecution body —the Insolvency Service, the police, the National Crime Agency or others. That is the kind of approach that Companies House typically takes.

The hon. Gentleman raised Blackmore Bond again, and has done a fantastic job of raising that on so many occasions. We have finally seen the FCA actually do something about it, as a result of much work. I remind the hon. Gentleman that what underpins the whole regime is the recognition that it is impossible, given the number of records, for Companies House to be a policeman of every single record and everything that happens. Five million companies are on the register, and 800,000 were registered last year alone, so it is not practical to look at every single one, but there are serious consequences if people improperly or falsely file information, particularly if they do so maliciously. They can be sentenced to up to two years in prison. That underpins the regime as well.

I thank you, Ms Vaz. The debate has highlighted the need for a robust financial penalty regime at Companies House, as well as consistency in the law that governs business entities. I commend both sets of draft regulations to the Committee.

Question put and agreed to.

Draft Economic Crime and Corporate Transparency Act 2023 (Financial Penalty) Regulations 2024

Resolved,

That the Committee has considered the draft Economic Crime and Corporate Transparency Act 2023 (Financial Penalty) Regulations 2024.—(Kevin Hollinrake.)

Post Office Legislation

Kevin Hollinrake Excerpts

Wednesday 13th March 2024 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

With permission, Mr Speaker, I shall make a statement about Post Office legislation and the Horizon redress schemes.

I am very pleased to be able to announce that today we are introducing a new Bill that will quash the convictions of postmasters in England and Wales affected by the Horizon scandal. As set out in my written statement last month, this legislation will quash all convictions that meet a clear set of conditions. Those in scope will have their convictions quashed on the day that the new legislation is brought into force. Subject to parliamentary passage, our aim is for Royal Assent to be received as soon as possible before the summer recess.

We accept, and have always been clear, that the legislation may overturn the convictions of some people who are guilty of genuine wrongdoing, but we believe this is a price worth paying to ensure that many innocent people are exonerated. However, the Government will seek to mitigate the risk of people receiving financial redress when they have not been wronged.

The Government also accept that this legislation is unprecedented. It is an exceptional response to a factually exceptional situation. I want to be clear that this does not set a precedent, and neither is it a criticism of the judiciary or the courts, which have dealt swiftly with matters brought before them. The fact remains, however, that three years after the first convictions were overturned, only around 100 have been quashed. Without Government intervention, many of these convictions could not be overturned, either because all the evidence has long been lost or because, quite simply, postmasters have lost faith in the state and the criminal justice system, and will not come forward to seek justice.

The legislation will apply to England and Wales only. However, we are fully committed to working with the Scottish Government and the Northern Ireland Executive through regular, weekly official-level engagement to progress their own approaches. I have met my counterparts in the Scottish Government and the Northern Ireland Executive to offer support and address their concerns, and I will have further meetings. The financial redress scheme will be open to applicants throughout the UK, once convictions have been overturned.

I thank the Business and Trade Committee, which recently published a report that includes some recommendations for the Government regarding Horizon redress. We will respond to them in the usual way, but today I would like to address two of the Committee’s recommendations. The first is that responsibility for redress should not lie with the Post Office, as it should be subject to independent oversight—something that has also been recommended to us by the Horizon compensation advisory board. I can announce today that the Department for Business and Trade, rather than the Post Office, will be responsible for the delivery of redress for overturned convictions. Final decisions on redress will be made by independent panels or independent individuals.

With your permission, Mr Speaker, I shall return to the House at a later date to provide details on how we intend to deliver redress for those who have their convictions overturned by the Bill or via subsequent measures taken in Scotland and Northern Ireland. We are discussing the details with the advisory board. The Financial Secretary to the Treasury, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston), will introduce legislation to make any payments made via the new scheme exempt from tax.

Secondly, the Select Committee recommended that the Government introduce legally binding timeframes to deliver redress for sub-postmasters, with financial penalties for non-compliance. I strongly support the Committee’s desire to speed up redress, but we feel that its proposed regime would have the opposite impact. It would potentially mean imposing penalties on forensic accountants or others who are helping postmasters to prepare their claims. Doing that would probably cause some of them to withdraw from this work, which would slow down the delivery of redress. Furthermore, we do not want to be in the position of rushing postmasters into major decisions about their claims and the offers they receive, which would possibly mean that some are timed out of redress altogether. The advisory board has said that its “strong view” is that

“this would be a backward step”,

which is why we passed legislation less than two months ago to remove the arbitrary deadline from the group litigation order scheme. We do not want to reverse that change.

However, the Government are acting to ensure that redress is delivered as quickly as possible. First, we are working with claimants’ lawyers to reduce the number of cases that require expert evidence—for example, from forensic accountants—or medical evidence, which delays claims. We will pilot that approach and, assuming that the pilot succeeds, we hope to expand it rapidly.

Secondly, the advisory board and I have asked for monthly reports on each scheme. They will come from schemes’ independent case managers, where such managers are in place. We will publish the reports, which will give us the best basis on which to assess measures for speeding up redress.

Finally, we are introducing optional fixed-sum awards. In January, the Government announced that they would offer an optional fixed-sum award of £75,000 to those in the group litigation order scheme. As of 5 March, 110 offers have been accepted, and over 100 people have taken the £75,000 fixed payment. Of those who have accepted the fixed payment, three quarters are new claimants, so the fixed offer has already meant that over 100 claims have been resolved promptly. In some cases, those people will have got more than they would have asked for. The fixed offer has also had a helpful effect on other claims, because it substantially reduces work on small claims by claimants’ lawyers, making more resource available to progress larger claims more quickly.

I am pleased to announce today that the £75,000 fixed-sum award offer will now be extended to the Horizon shortfall scheme, to ensure that everyone is treated fairly across all the schemes. Those who have already settled their claim below £75,000 will be offered a top-up to bring their total redress to that amount; over 2,000 postmasters will benefit quickly from this announcement.

We are mindful that claims are not being submitted to the GLO scheme as swiftly as we would like. We have already announced the optional fixed-sum award of £75,000, but to ensure that we get help to claimants more quickly, I can announce today that anyone who chooses not to take that offer, and instead submits a full claim for individual assessment, will have their interim payment topped up to £50,000 straight away.

Many postmasters’ lives have been ruined by the Horizon scandal, and we are working hard to deliver redress. We have set up the Williams inquiry, which will discover the truth. We will provide fair financial redress as promptly as we can, and we will exonerate those who were so unjustly convicted of crimes that they did not commit. I commend this statement to the House.

[Mr Speaker]

I call the shadow Minister.

--- Later in debate ---

[Rushanara Ali]

I will move on. I simply hope that the Minister will reflect on the reversal of the statement he gave this morning, in which he took the position that he would take a donation from that donor. I hope he reflects on the impact that the issue is having on many of us.

I turn to today’s crucial statement. The Horizon scandal is truly shocking, and is one of the most devastating miscarriages of justice in British history. The scandal has brought devastation to the lives of hundreds of falsely convicted sub-postmasters. Over 20 years on, they and their families still suffer from the consequences and the trauma of all that they have been put through. I pay tribute to them for their determination in pursuing justice, and to Alan Bates and the sub-postmasters who pioneered the campaign and worked tirelessly to seek justice. Without their bravery and perseverance, the campaign would not be where it is today. I also pay tribute to my right hon. Friend the Member for North Durham (Mr Jones) for all his work, to Lord Arbuthnot for his campaigning on this issue for many years, to others in this House and the other House, and to members of the Business and Trade Committee and its Chair, my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne).

We of course welcome the legislation that is being laid before Parliament today, but before giving a full verdict on it, we will need to properly scrutinise the details and analyse its potential impacts. In the first instance, the legislation leaves a series of outstanding issues, and the question of when justice and compensation will be delivered, and to whom. First, I will address the territorial scope of the legislation, which currently applies only to England and Wales, even though the Post Office is not devolved, and the Horizon system and the impacts of the scandal are UK-wide.

Approximately 30 cases need overturning in Scotland and Northern Ireland, but a series of outstanding questions remain as to when sub-postmasters in Scotland and particularly Northern Ireland will receive justice and compensation. I welcome the Minister’s assurance that there will be regular dialogue with the devolved Administrations, but I would be grateful if he provided more detail on how that will work in practice, given the different legal processes.

As we know, 80% of the redress budget is yet to be paid out. There remains considerable uncertainty about when sub-postmasters will receive their compensation. I am sure that we can all agree that they have waited long enough, and the delays are causing further financial distress and suffering. We note the Business and Trade Committee’s recommendation that there be a legally binding timeframe for the period between an offer being first tabled and a settlement being reached. If those legally binding targets are not adopted, what assurances can the Minister give that he will meet his target of ensuring that all compensation is out of the door by the end of the year? What mechanisms will he put in place to ensure that there are no further delays? I know that he is committed to ensuring that there are no further delays, but sub-postmasters will want to know that this will actually happen.

Given the recent chaos in the Post Office’s leadership, we welcome the decision to take the Post Office out of the redress process. As the Minister said, redress must have independent oversight. The Post Office is in disarray, and we need focus and efficiency in ensuring that compensation is paid to the sub-postmasters as soon as possible.

Financial redress alone cannot come close to repaying sub-postmasters for their suffering, though it is so important that we get it right. The very least the Government can do is ensure that sub-postmasters receive fair compensation and exoneration as soon as possible. There are those impacted by the scandal who have sadly passed away, and did not live to see their innocence proven or to receive the compensation that they deserved. It is vital that the Government act with the urgency and speed that is needed to correct this terrible injustice.

[Kevin Hollinrake]

The shadow Minister’s comments are on the record, so I shall deal with them briefly. I think this is the second time she has made comments at the Dispatch Box that have been unfair or factually incorrect, and I hope that she will correct the record. If she had actually watched the interview I gave, she would know that I absolutely did condemn the words of Mr Hester. I said they were wrong. I said they were racist, and I think it is absolutely right that he has apologised. She should watch the full broadcast, and I hope that she will apologise to the House and correct the record.

The points that the hon. Lady raised pertain largely to the Scottish and Northern Ireland devolved Administrations. I quite understand the concern around those issues, and I am very keen to ensure that we get this right across the United Kingdom. As she acknowledges, there are different legal processes in those areas, and we think it would be inappropriate for us to legislate for parts of the United Kingdom that have different legal processes and different prosecutors. Justice is devolved, although the Post Office is a UK-wide organisation, as she rightly says. That is why we think the legislation should allow devolved Administrations to legislate for themselves, if they choose to. We will work closely with them. Officials meet them weekly to assist wherever we can, so that compensation can be delivered UK-wide; that is how the scheme operates.

I think the hon. Lady said that 80% of compensation was yet to be delivered. I may be wrong there, so I will check the record. Across all the schemes, in around two thirds of cases, full and final compensation has already been received. That being the case, about 2,000 people will be topped up to £75,000, as I announced earlier, but it is not right to say, as I think she did, that the majority of people are waiting for compensation.

The hon. Lady asked whether we wanted to deliver the compensation by the end of the year. Absolutely we do, but as I said, not everything is in our gift. We cannot compel a claimant to submit a claim, or know when that will happen. If somebody puts in a claim right towards the end of the year, for example, it may not be possible to deal with it before the end of the year. Not everything is in our gift, but we are keen to expedite anything that is.

It is absolutely critical that we have independent oversight; all schemes have it. In the overturned conviction scheme, we have retired High Court judge Sir Gary Hickinbottom, and the £600,000 fixed-sum award; but on Mr Hickinbottom’s advice, we have also introduced the £450,000 payment as soon as a full claim has been submitted. We are doing everything we can to make sure that people are compensated as quickly as possible.

[Paul Scully (Sutton and Cheam) (Con)]

I welcome the Minister’s statement, and the pragmatic way that he has looked to speed up claims, and to take this in-house as best he can. I also welcome the proposed legislation, and the extension of the £75,000 to those in the historical shortfall scheme. I point the Minister to an article in The Times this morning about people who may reportedly be excluded from the legislation. Can he give any assurances that people who have gone through this process and whose original conviction was based substantially on the Horizon problems will indeed be exonerated and therefore able to get compensation?

[Kevin Hollinrake]

I thank my hon. Friend for his question, for his tireless campaigning in this area, and for his tireless work as my predecessor in this role. He did some great work to help us get where we are today. He is right to say there are some people who are not exonerated through this process—for example, people who have been before the Court of Appeal—but they will be able to appeal again in the light of our legislation. Of course, they had the right to do that anyway, but we will support them where we can in bringing forward their case to the Court of Appeal, and we very much hope that innocent people who follow that process will be exonerated.

[Mr Speaker]

We come to Scottish National party spokesperson.

--- Later in debate ---

[Marion Fellows (Motherwell and Wishaw) (SNP)]

Thank you, Mr Speaker, and apologies for being slightly late. I thank the Minister for giving me prior sight of his statement. I welcome the announcement of the legislation. It will hopefully go a long way to speeding up full and fair financial redress for a large number of Horizon victims, and will bring them closer to justice. Furthermore, I welcome the enhanced financial redress for those who experienced Horizon-related shortfalls, and the fact that those who have already settled for less than £75,000 will have their redress topped up.

I pay tribute to the Minister for his hard work on this, to the Horizon compensation advisory board for its sterling work, and to Sir Wyn Williams and his inquiry for their ongoing work. Most of all, I pay tribute to the victims, following the unimaginable pain that they have been forced to endure at the hands of Post Office Ltd and successive UK Governments. I hope that today’s announcement can give them some hope, and that there is an end in sight to this sorry chapter.

I welcome the administration of financial redress schemes being taken out of the hands of Post Office Ltd —not before time. Post Office Ltd has demonstrated obfuscation and incompetence at every stage. From a Scottish perspective—I am sure my Northern Irish colleagues will agree with me—I am deeply disappointed that the legislation is confined to England and Wales only. That needs to be addressed. We should include Scotland and Northern Ireland to ensure parity. The Westminster Parliament is sovereign, but the Scottish Parliament can be challenged on its legislation, and this needs to be looked at.

The devolution process also risks slowing things down. Will the Minister guarantee today that any relevant orders under section 104 of the Scotland Act 1998 will be processed quickly by his Government? Scotland has no direct equivalent Minister for postal affairs, as only Westminster and his Department have a remit for the Post Office. Will he ensure that the Bill contains provisions requiring Post Office Ltd to fully co-operate with the Scottish Government and to supply all needed materials? It is vital that victims in Scotland and Northern Ireland do not have to wait any longer for justice than their English and Welsh counterparts. Victims across these isles suffered enormously at the hands of a wholly reserved institution, so complete parity is essential.

[Kevin Hollinrake]

I thank the hon. Lady again for all her work in this area. She has been a tireless campaigner. We would all like to be further along, but she has made an important contribution to our work.

The hon. Lady is right to say that victims should be front and centre when it comes to compensation, which must be delivered fairly and as quickly as possible. Some of the changes I have announced today, including in my statement, have been brought forward on the basis of feedback from victims and their legal representatives. We are listening to them, and we will make sure that we deliver any changes where we can.

I fully understand the hon. Lady’s point about Scotland and Northern Ireland, and she will understand the constitutional sensitivity of this area. These are tough decisions, and I understand that Scottish Ministers will have to make similar decisions. They can decide to do what we are doing and, if they do, we will support them in how they legislate. Given the sensitivities, we thought that, where justice is devolved, the devolved Administrations should make the decision. I again commit to making sure that we work across the piece, wherever we can, to deliver the consistent compensation that she requires, without forgetting that the redress schemes are UK-wide. As soon as people’s convictions are overturned, they will be able to access compensation, just as they can in England and Wales.

[Sir Robert Neill (Bromley and Chislehurst) (Con)]

Everyone wants to see the sub-postmasters’ suffering brought to an end as swiftly as possible, and I welcome what the Minister has said about simplifying and speeding up the compensation scheme. He will know that claimant lawyers such as Neil Hudgell, who gave evidence to the Business and Trade Committee, have real expertise in this field, and I hope he will work very closely with the sector to maximise that expertise in designing the scheme.

I sound one note of caution. The Minister says this is exceptional, and it is constitutionally unprecedented to overturn, through legislation, convictions imposed by our courts in good faith, based on the evidence before them at the time. Frankly, it is most undesirable that we should ever go down that route.

Some of us will need to see the detail of the legislation and what evidence the Government have that it will be quicker and more comprehensive to quash convictions via this constitutionally unprecedented route, rather than leaving the courts to deal with it, with assistance. As the Minister knows, this could have been dealt with via a presumption in favour of sentences being quashed where they depended on Horizon evidence, rather than this wholesale measure. In particular, will he look at what impact it will have on rehabilitation of offenders legislation, and at whether convictions quashed by this Bill will be removed effectively so that people can, for example, travel to the United States or other foreign jurisdictions where they may need a visa, for which they need to show that they do not have an outstanding conviction?

[Kevin Hollinrake]

I thank my hon. Friend for his question and all his work on this subject. Our engagement with him throughout the process has been very important. He has much expertise in this area.

We agree that this is unprecedented and undesirable, but we believe it is the least worst option. We want to see this delivered more quickly as, of the 790 or so sub-postmasters whom we believe this legislation will affect, only around 100 convictions have so far been overturned. We think that situation is untenable, which is why we decided to take this route. Of course, I will continue to work with him and listen to his wise advice.

I think I am right in saying that, for convictions overturned by the Court of Appeal, the record is marked “Overturned by the Court of Appeal”. We foresee these records being marked in a similar way—“Quashed by Parliament” or something along those lines. Again, I am happy to engage with my hon. Friend to make sure we get it right.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I welcome the Minister’s statement and thank him for the collegiate way in which he is working across the House to try to secure justice for those who have suffered.

This is a welcome step forward. I am glad to see the Minister taking on board some of the recommendations made in the Business and Trade Committee’s report last week, setting out how we can deliver fair, fast and independent redress. The Government have today proposed how they will overturn convictions. They have taken the Post Office out of some, but not all, claim processing and, crucially, they have increased the number of people who can apply for fixed-term remuneration. However, the Post Office is still handling the claims of at least 100 people with overturned convictions when it is patently not fit for purpose.

For those who seek to contest their claim, the Minister says there will be no legally binding timeframe between the submission of a claim and an initial offer being made by his Department, which is a problem. There is no standard tariff proposed for compensation under key heads of terms, such as loss of reputation. That, too, is a problem. The Bill is far more than a half measure, that is true, but it is not yet a full solution.

I leave the Minister with the words of Jo Hamilton, who messaged me last night to highlight the plight of the GLO litigants, in particular, and the way in which they

“have to justify every last penny even if some of their claim is for actual monies stolen from them by the Post Office… Why can’t the Government do the right thing before even more victims die?”

Those words need to ring in our ears as we seek to perfect this Bill.

[Kevin Hollinrake]

I 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.

[Duncan Baker (North Norfolk) (Con)]

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?

[Kevin Hollinrake]

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.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

Like others, I thank the Minister for advance sight of his statement but, novelly, I also thank him for advance sight of the Government “top lines to take”. That latter document includes this passage:

“So far we have identified up to around 800 cases that are potentially in scope [Note: if we use this number in public we are going to get held to it. There is a risk that we may deliver fewer overturns or award redress”—

to—

“fewer individuals, we will then have to explain that]”.

If it is the view of officials in the Minister’s Department that accountability and transparency are some sort of problem, does he really think that they are best placed to exercise oversight of the compensation scheme? Should that not be put now in the hands of someone who is independent of both Government and the Post Office?

[Kevin Hollinrake]

The figure the right hon. Gentleman uses and the document he references, which I was unaware he had, are interesting. Me being me, I had not read that line, although my previous comments might indicate that I had because I mentioned that exact figure. I am not afraid to be transparent or accountable for any of the delivery of these compensation schemes.

[Shailesh Vara (North West Cambridgeshire) (Con)]

I congratulate my hon. Friend on all that he is doing, working night and day to bring this painful issue to a conclusion for the many postmasters and their families who have suffered so much over so many years. Where people do not accept the fixed offer but wish to pursue an individual claim, may I seek his assurance that such claims will be treated expeditiously, and that resources will be made available to deal with those claims quickly and efficiently? Will he also give an assurance that claimants will have a named individual responsible for their file, rather than whoever happens to pick up the file on a specific day?

[Kevin Hollinrake]

I thank my right hon. Friend for his question and can absolutely give him the assurance he seeks. A fixed-sum award is only one route; it is not right for everybody. Some people have higher levels of claims, and we will support them where we can. In my remarks, I announced new measures we are using to do that, including a pilot scheme where expert reports are not required. That should significantly abbreviate the timescale between being able to submit a claim and getting a response. As for expediting in this area, in the GLO scheme we set a target that in 90% of cases we would respond to a final claim within 40 days. Currently, we are on 87% against that measure, so we are delivering this more quickly. He makes an interesting point about a named claim manager or something along those lines, and, if I may, I will take that away with me.

[Clive Efford (Eltham) (Lab)]

I welcome the statement, the legislation and the removal of the Post Office from the process to the extent that we have seen so far. However, I do not think the Post Office is able to deal with any claims credibly. I wrote to the Minister on 12 February about my constituent who came forward after the TV programme. She had had problems with Horizon, had agreed compensation with the Post Office, which was way below what her losses were, and had signed a non-disclosure agreement. At the time she had been dealing with a terminally ill partner, who has since passed away, and so was in no fit state to take on the Post Office. She is seriously out of pocket, so I would expect her to be able to fall under the Horizon shortfall scheme. I hope that the Minister will confirm that in the letter he will doubtless send me.

[Kevin Hollinrake]

I have not seen the letter the hon. Gentleman mentions yet, but I look forward to it and I understand his points about the Post Office handling claims. I am responding personally to every letter I get on this matter from colleagues; we always do that, but I am doing so even more on this occasion. I am sorry to hear about his constituent and the situation she is in. If she has accepted less than £75,000, she will get an automatic uplift to £75,000. We are determined to ensure that, across every scheme, people are treated fairly and feel that they are being treated fairly, and I am keen to look at the hon. Gentleman’s letter and make sure that is the case for his constituent.

[Virginia Crosbie (Ynys Môn) (Con)]

I welcome this important new Bill. I know that the Minister and his team have worked exceptionally hard to make it happen. Will he join me in thanking Mr James Evans from Llanfair P.G., who worked as a sub-postmaster in Llanfairpwll for 47 years, with a post office service record of 60 years, for bringing together sub-postmasters and those on Ynys Môn affected by this gross miscarriage of justice to ensure that they receive the correct support, compensation and, importantly, exoneration?

[Kevin Hollinrake]

Again, I thank my hon. Friend for her work on this, and I absolutely thank Mr Evans. We are here now because the victims of this scandal are supporting each other, led of course by Alan Bates. So I welcome Mr Evans’s work, and if I can assist him or his group at all to make sure that they get compensated fairly, whatever their circumstance within these schemes, I am happy to do that.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

My constituent Mr Ennion ran the post office in Llandovery in Carmarthenshire between 2000 and 2018. In a recent BBC interview he estimated that he had lost about £75,000, and said that, in addition, his health has deteriorated severely. He said he had no faith in the Horizon shortfall scheme and making an application to it, because he has not kept any records and because he just does not think he is well enough to take on the Post Office for a second time. I know that the Minister is working extremely hard, and I pay tribute to him for the work he has done, but what more can he do to encourage people such as Mr Ennion to make an application through the scheme?

[Kevin Hollinrake]

I thank the hon. Gentleman for his kind words and for representing his constituent so effectively. I hope that what we have announced today will be absolutely the right route for his constituent, as it means he would not have to go through what can be a complex process of submitting a detailed claim; he can simply opt for the £75,000 fixed-sum award and walk away. There is no claim form to be filled in—a simple letter needs to be signed and that is it. If he feels he should be compensated for more than that, he can go through the Horizon shortfall scheme. That takes a little longer, but he will still end up with compensation both for the financial impact and the impact on his health. I am happy to help, wherever I can, with his case.

[Sammy Wilson (East Antrim) (DUP)]

I welcome the Minister’s statement. He promised the House that he would bring forward legislation quickly, and he has done so. However, I must express the disappointment of all Northern Ireland representatives that Northern Ireland is not included in the Bill, and the reasons that the Minister has given for that do not stand up.

The Minister has argued that this is a sensitive constitutional issue—it is not. The First Minister, the Deputy First Minister and the Justice Minister have all made it clear that they would be quite happy for Northern Ireland to be included in the legislation. He has argued that the systems are different. There have been many occasions when Northern Ireland has been included in legislation here even though the judicial system is different. This Bill is about exonerating people, not about interfering with how the system works. The last thing he said was that including Northern Ireland might slow down the legislation. Since the legislation is going to go through the House following the normal process, there is absolutely no reason why, as has happened on previous occasions, he could not include a Northern Ireland clause at a later stage in our consideration of the Bill.

I ask the Minister to look again at the arguments he has made, because I do not think they stand up. There is a way forward to ensure that those affected in Northern Ireland are treated in the same way, and at the same time, as those in England and Wales.

[Kevin Hollinrake]

I thank the hon. Gentleman for all his contributions, and for representing his constituents, and others in Northern Ireland, who have been affected by the scandal. I understand his point and am very sympathetic to it. We took a very difficult decision. Clearly, we are happy to work with the authorities in Northern Ireland. As I said in the statement, I have spoken to my counterpart in Northern Ireland. We are today introducing a 10-clause, 10-page Bill, and we hope we have put together a relatively straightforward piece of legislation. We are happy to lend our support so that Northern Ireland is able to do the same as we are doing, if that is the choice that is made. As he has outlined, that is the political consensus in Northern Ireland, which I welcome.

[Stephen Farry (North Down) (Alliance)]

This is a national scandal that requires a national solution. As has just been stated, the political leaders in Northern Ireland are unanimous that they want Westminster to act in this sphere. The Minister will not be stepping on anyone’s toes constitutionally if he proceeds on that basis. The Justice Minister advises me that what is required to include Northern Ireland is relatively straightforward. It is not complicated in any shape or form. The stark reality is that the newly restored Executive does not have the capacity to pass such legislation at the same time as Westminster, so there will be an iniquity across the UK on this reserved matter. Can I ask the Minister one more time to listen to the voices from Northern Ireland? I understand that he says he will work with the Executive, but will he take on board what the Executive are saying and include Northern Ireland in the Bill?

[Kevin Hollinrake]

I thank the hon. Gentleman for his points. To reiterate what I said in response to earlier questions, we are very sympathetic. We are keen to lend support, and not just moral support but help in drafting the Bill. Of course I will continue to listen to him and others with similar views about the involvement of the devolved Administrations. We are keen to make this work UK-wide. The redress schemes will be available UK-wide, if we can get those prosecutions quashed on a UK-wide basis.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister and pay tribute to his perseverance in bringing about a legislative change. It is fantastic to hear that the legislation will quash convictions relating to the Horizon scandal. This has been a long time coming and those affected must be praised for their long journey to justice. However, unfortunately there are many who have not lived to see this. What steps will he take to ensure the legacy of those who were affected but have passed away will live on, and that their families are supported through the redress payment scheme, to lessen the years of pain that they have endured?

[Kevin Hollinrake]

I thank the hon. Gentleman for his work on the issue, and for his regular contributions on this and many other matters. The legislation has taken too long, as he rightly says, and sadly some people have passed away, which is terrible for the families. Those people will never live to see their convictions quashed and names exonerated. The redress schemes work for the estate, so if somebody has passed away, the family can come forward and submit a claim, or they can choose a fixed-sum award and pursue their claim in that way, which is a quicker process. That happens for families in the sad situation the hon. Gentleman outlines. I am happy to work with him to ensure that we deliver for his constituents.

Oral Answers to Questions

Kevin Hollinrake Excerpts

Thursday 7th March 2024 Commons Chamber

[Craig Tracey (North Warwickshire) (Con)]

3. What steps her Department is taking to support small and medium-sized enterprises through the Small Business Council.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

On 1 February, the Government reaffirmed our commitment to all the UK’s 5.5 million small businesses with the creation of the new Small Business Council, which is looking at key areas, such as improving business support, access to finance, support and advice, and breaking down barriers, including barriers to female entrepreneurship.

[Craig Tracey]

As chair of the women and enterprise all-party parliamentary group, it has been fantastic to see the boom in female-led businesses over the past few years. We now want to see consideration of how some of them can grow. Can the Minister set out how the new Small Business Council can help them to do that?

[Kevin Hollinrake]

I thank my hon. Friend for his question and for all he does for women in entrepreneurship and on the APPG, on which he has worked for many years. The Small Business Council has excellent entrepreneurs on it, such as Emma Heal from Lucky Saint and Julianne Ponan from Creative Nature, who we rely on for expert advice. We also have the investing in women taskforce, which has helped to increase the number of female entrepreneur businesses from 56,000 in 2018 to 150,000 in 2022. The investing in women code has 240 signatories. We are keen to do more and to work alongside my hon. Friend to ensure that the world of entrepreneurship is as friendly as possible to female entrepreneurs.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Will the Minister ask the Small Business Council to wake up to the opportunities in the hydrogen sector, not only in terms of the engineering that supplies that sector, the coming replacement of batteries and all that transportation stuff, but in the infrastructure of our country? We have great engineering that is ready to go with a hydrogen future. When will he wake up to that opportunity?

[Kevin Hollinrake]

We already have woken up to that opportunity. As the hon. Gentleman knows, we have great opportunities in hydrogen in Teesside and in Yorkshire, with the Humber hydrogen cluster. It is something we are keen to support as a Government, and I would appreciate it if he offered his support, too.

[Mr Speaker]

I call the shadow Minister.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

The perfect storm of rising borrowing, rent and labour costs is continuing to cripple businesses, and the UK small business index fell 78 points last December, according to Xero Small Business Insights, to the lowest reading since the middle of the pandemic in August 2020. The Government have had 14 years to tackle the barriers facing SMEs. What specifically will the Small Business Council do, and what will Ministers do to halt the alarming trend of more businesses closing than opening?

[Kevin Hollinrake]

I am sorry that the shadow Minister is so pessimistic about the world of business. We have spoken at events together many times, and she hears the mood in those audiences, which is far more positive than she sets out. We are active in many areas, as she knows. At the event we both spoke at this week, I talked about access to finance, support and advice, and removing barriers. Access to finance has been key, with £1 billion of Start Up loans having been made to 100,000 businesses. If she listened to the Budget yesterday, she will have heard about the rise in the VAT threshold and the growth guarantee scheme. There are many opportunities for small businesses. We will have 200,000 more workers coming back into the workplace, tackling another barrier for businesses. Get with the programme; it is much more exciting than she thinks.

[Nicola Richards (West Bromwich East) (Con)]

4. What recent progress her Department has made on negotiating a free trade agreement with Israel.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

Some 130,000 children are in the care of close family members in England alone. We recognise the vital role that kinship carers play in looking after children who cannot live with their parents. Last year, the Government published the national kinship care strategy and announced a £20 million package of support for kinship carers in 2024-25.

[Munira Wilson]

The Minister just referenced the Government’s kinship strategy, which was published in December. Their own strategy has recognised that kinship carers in employment often report the need to give up work or reduce their hours to be able to care for the children they support; it cites a survey revealing that 45% of kinship carers give up work and a similar number have to reduce their hours permanently. Given the Minister’s desire to drive up employment and the fact that kinship carers stepping up overnight to look after children saves the taxpayer a huge amount of money in comparison with when children go into local authority care, why are the Government not making paid employment leave a statutory right and only publishing guidance?

[Kevin Hollinrake]

The hon. Lady raises a very important point. We call on local authorities to be considerate to people who are in employment when they take on a child to look after in a kinship care situation. We think that employers are the right people to make sure that any provision we provide is a floor, not a ceiling. Companies such as John Lewis take a very considerate approach to people in that situation. We urge them to do so, but we also encourage local authorities, which have budgets allocated to this particular issue, to provide support where they can.

[Matt Western (Warwick and Leamington) (Lab)]

12. If she will make an assessment of the potential impact of infrastructure on levels of business investment.

--- Later in debate ---

[Christine Jardine (Edinburgh West) (LD)]

14. If she will make an assessment of the potential impact of regulatory costs on small and medium-sized enterprises.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

We are hacking through the red tape, not least with our smarter regulation programme. We have announced reforms to employment law and the recording requirements of the working time directive, which will save UK businesses up to £1 billion, particularly benefiting SMEs.

[Christine Jardine]

I note that the Minister welcomed yesterday’s Budget as helping small businesses, particularly in the hospitality sector, which is very hard hit in my constituency. One of the problems that many businesses tell us about is the business rates system. More businesses have failed in the past two and a half years than have been established. In Scotland, we often find that while the downsides of this Government’s policy are happily passed on by the Scottish Government, any benefits are not. We would like to see complete reform of the rating system—not tinkering but reform. Can the Minister tell us whether widespread reform is planned? How would he plan to do it? How could businesses in Scotland also benefit?

[Kevin Hollinrake]

The hon. Lady is absolutely right to point to some of the difficulties in the hospitality sector. I speak to hospitality entrepreneurs in my constituency and across the country who are finding it difficult, which is why we stepped in with, first, a package of about £13 billion of business rates support, and there was £4.3 billion of business rates support last autumn. We passed the equivalent moneys on to the Scottish Government to pass on to their hospitality venues, but they passed on none of it.

A typical pub in Scotland is £15,000 worse off than a typical pub in England, and a typical guest house is £30,000 worse off. That is why Scotland has a 30% higher failure rate than England. Similarly, a typical pub in Labour-run Wales is £6,000 worse off and a typical guest house is £12,000 worse off, and there is a 19% higher failure rate. It is critical that the benefits are passed on to those businesses, and that we look for structural reform. Anyone who wants to scrap business rates needs to show where the £22.5 billion of income will come from, rather than simply saying that they will scrap them without announcing a replacement.

[Christian Wakeford (Bury South) (Lab)]

15. What assessment she has made of the effectiveness of publicly naming employers for the enforcement of the national minimum wage.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

Since 2011, we have published 20 press releases and named around 3,200 employers that have, in total, repaid over £41 million in arrears to over 460,000 workers. We have recently had round 20 of the scheme.

[Christian Wakeford]

Naming and shaming serves as a deterrent, but should we not go further against persistent offenders? Paying the minimum wage is not an opt-out; it is a law that no company is above. Stronger penalties, including fines proportionate to the severity of the violation, to ensure that no employer can exploit its workers with impunity, would level the balance between employers and employees. Will the Minister commit to exploring these measures to safeguard the rights and the dignity of workers?

[Kevin Hollinrake]

The hon. Gentleman is right to point to this measure. We know that naming and shaming is a significant deterrent against underpayment of the national minimum wage, and we are very keen to ensure that naming continues. Alas, in the most recent naming and shaming round, 2,800 minimum wage investigations returned more than £16.3 million in arrears to over 120,000 workers. His Majesty’s Revenue and Customs issued businesses with nearly 700 fines, totalling £13.2 million. As the hon. Gentleman recognises, naming and shaming alone is a significant deterrent and we intend to continue doing it.

[Mr Speaker]

I call the shadow Minister.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

My hon. Friend the Member for Bury South (Christian Wakeford) is right that too many employers still think they can opt out of paying the minimum wage. Earlier this week, the Low Pay Commission published its 2023 report, which said that non-compliance “appears persistent” in the social care sector. I have heard a range of evidence citing problems with record keeping, exploitation of migrant workers, and workers routinely not being paid for travel time.

It is clear that the social care sector has a real issue with the minimum wage but, when browsing through the latest naming and shaming list published by the Department a couple of week ago, I found only 17 employers classed as being within the social care sector, which is less than 0.1% of the total number of employers in the sector. What will the Minister do to ensure that everyone working in the social care sector gets at least the minimum wage?

[Kevin Hollinrake]

The hon. Gentleman is right to raise this issue, on which we do much. For example, we make sure that people can anonymously report the underpayment of the national living wage through either His Majesty’s Revenue and Customs or ACAS. It is really important that we do that. We have labour market enforcement undertakings and orders, and we provide the tools for serious cases. As of April 2022, 40 employers were on labour market enforcement undertakings and 18 employers have been prosecuted. The message should be loud and clear to employers that if they do not comply with the law, we will take action.

[John Penrose (Weston-super-Mare) (Con)]

17. When she plans to publish the smart data road map.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

My officials are co-ordinating and leading on the drafting of the road map, which will set out the Government’s ambition for future smart data scheme development across seven different sectors. We will publish that very shortly.

[John Penrose]

I am delighted to hear that the road map is coming very shortly. My hon. Friend will recall that I asked this question just before Christmas and he said it would be out in January. We were then hoping it might be coming out in yesterday’s otherwise excellent Budget, but it did not. Other countries are coming up on the rails and trying to overtake us. The noise of the approaching herd is growing in our ears, so can we please move as fast as possible on this?

[Kevin Hollinrake]

My hon. Friend is right to hold our feet to the fire on this. We are pressing forward and we are determined to get it right, not just out quickly. He rightly said that I set the ambition to get it out in January, and that has put officials’ feet to the fire as well in getting it out. I signed off the road map yesterday, so it should be out very shortly. I do not agree that other nations are hot on our heels on this issue, as we are way ahead. There are billions of calls in open banking every month, and millions are using this every day without even knowing it. We are going to extend those opportunities to energy, telecoms and, crucially, small and medium-sized enterprise finance, making the journey for SMEs to get business finance far easier.

[Grahame Morris (Easington) (Lab)]

T1. If she will make a statement on her departmental responsibilities.

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[Munira Wilson (Twickenham) (LD)]

T8. Quarter 4 of 2023 was the 10th quarter in a row in which more British businesses closed their doors than opened up. Just yesterday, a small business owner in Twickenham contacted me to tell me that his business was on the brink. If the Secretary of State will not consider business rate reform, as my hon. Friend the Member for Edinburgh West (Christine Jardine) suggested, what is she doing to help our small and medium-sized businesses, and to stem the tide of insolvencies?

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

The hon. Lady raises an important point. We do not shy away from the fact that things have been difficult for businesses, with the covid crisis, of course, followed by the cost of doing business crisis. That is why we stepped in to support businesses, with a £4.3 billion package for rates last autumn, which has helped many businesses to get through a difficult time. Unfortunately, that support has not been passed on in Scotland and Wales, but it certainly has in England. I am very happy to meet with her to discuss her particular business problem.

[Mr Laurence Robertson (Tewkesbury) (Con)]

T7. Because of its very large population and economic activity, Nigeria offers many opportunities for British businesses. I understand that there was a recent ministerial visit to that country. Could we have a brief report of the outcome of that visit?

[Liz Twist (Blaydon) (Lab)]

T9. Last week, Carl Cresswell, director of business resilience in the Department for Business and Trade, told the Select Committee that he personally thinks that we will end up spending more money on Horizon compensation overall than that £1 billion currently allocated by the Treasury, but we did not hear anything about that in yesterday’s Budget. Does the Secretary of State share that view?

[Kevin Hollinrake]

We have always been clear that the £1 billion is not a cap. Clearly, the amount of compensation that needs to be paid for redress is to get people back to where they were before the scandal took place. At the moment, we are not nearing that £1 billion, but I think that over time we will be. As I say, it is not a cap; if we need to raise the amount, we will.

--- Later in debate ---

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

The Secretary of State will have seen the recommendations that our Committee set out this morning for ending the circus of the Post Office administration of the redress schemes for victims of the Horizon scandal. I know that she takes this incredibly seriously and so I know that she will study our cross-party recommendations for the new legislation that she is about to bring before the House. The question for today is this: if we put all the ongoing investigations to one side, on the basis of the facts as they are known today, does she still have full confidence in Nick Read as the chief executive of the Post Office to run the redress schemes currently under way?

[Kevin Hollinrake]

We thank the right hon. Gentleman for his work. I have taken a quick look at the report, although it was only issued this morning. All the recommendations he makes in that report we have either fixed or are fixing with the assistance of the Horizon compensation advisory board. We agree with him that we need to bring the compensation schemes in house. The GLO—group litigation order—scheme is already being delivered by the Department for Business and Trade. We believe that further compensation will flow from our overturning of convictions. We will be overturning hundreds of convictions through legislation in this House very shortly, as quickly as possible, and that will provide a flow of hundreds of millions of pounds in compensation for those individuals. That will be done by the Department for Business and Trade.

[Martin Vickers (Cleethorpes) (Con)]

As the trade envoy to the western Balkans, the issue of Government-to-Government agreements is raised with me frequently. There is no doubt that if they were available, more deals could be done with the Balkan countries. Will the Minister give an update on the Government’s position, please?

--- Later in debate ---

[Richard Foord (Tiverton and Honiton) (LD)]

Mr Hussein from east Devon, whom I represent, has effectively been robbed of £100,000, given that £40,000 of sub-standard building work has to be levelled and destroyed. The Federation of Master Builders has campaigned for a compulsory licence scheme for construction companies. The Domestic Buildings Works (Consumer Protection) Bill would outlaw cowboy builders, provide compensation for consumers and ensure that reputable builders were not undercut by unlicensed rogues. Will the Minister take a fresh look at that Bill?

[Kevin Hollinrake]

The hon. Gentleman raises an important point. Some of the most frequent correspondence that I get from colleagues from across the House relates to rogue builders. We are determined to ensure that this does not happen to our constituents. We advise them to use builders registered with TrustMark, which is a trusted scheme, to ensure that work is done properly. I would be very happy to meet him to discuss that potential legislation.

Budget Resolutions

Kevin Hollinrake Excerpts

Wednesday 6th March 2024 Commons Chamber

[Stewart Hosie (Dundee East) (SNP)]

In his statement, the Chancellor mentioned “not just higher GDP, but higher GDP per head.” There is just one slight snag: figures published today for GDP growth per capita from 2024 to 2027 are lower for every year than figures published only a year ago, so we are talking about not higher GDP per head, but lower GDP per head. I use that as an example; we hear the rhetoric and hyperbole of the Budget statement, but it rarely stands any scrutiny when one reads the Budget documentation. The Government can claim that they will meet both their fiscal targets at the end of a five-year rolling forecast period—indeed, every Government could say they will meet their targets at the end of a five-year rolling forecast period—but it is what happens in between those points that is important.

The Government told us a year ago that net debt would fall as a share of GDP in 2024-25, and that net borrowing would fall below 3% of GDP in 2025-26. However, by the autumn statement, only five months ago, we were told that debt would not fall until 2025-26, a year later—and they still forecast that the deficit would fall below 3% of GDP in the same year. We were also told in spring that GDP growth would exceed 2% in two of the next five years, and that productivity would sit between 1% and 1.3% every year across 2024 to 2027. By November, growth was not forecast to exceed 2% in any of the forecast years, and the productivity growth forecast was down for every single year. Today, the Chancellor announced that while the Government would still meet their primary debt target in 2025-26, the percentage of debt to GDP would be higher than it was only five months ago, so debt is not really falling; at best, it is stagnating. GDP growth would still not exceed 2% in any year to 2028, and that is important. That is another half-decade in which GDP growth will not even reach historical trend growth rates. That is absolutely shameful.

The figure for productivity per hour—a metric that the Government like—is lower cumulatively over today’s new forecast period than the figure was that they announced last November. The Chancellor said this was a Budget for growth, productivity and long-term investment, but debt is not really falling as a share of GDP. The deficit is not getting smaller—it is actually getting worse, compared with the forecast last year—and productivity growth, that perennial problem that we all recognise exists, is cumulatively lower over the entire forecast period than the Government announced last November.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

Does the right hon. Gentleman agree that we have to increase growth? We all agree that we have to get all parts of the United Kingdom growing. If he looks at the figures from the Library, he will see that from 2011 to 2021, England grew cumulatively by 14.9%, Wales by 13.7%, and Scotland by 7.2%. Does he agree that the Scottish Government need to do more to stimulate growth in Scotland?

[Stewart Hosie]

I agree that we need growth across the piece. One of the tools to facilitate growth is tax credits, and I am sure the Minister recognises that tax credits are a function of corporation tax. If he is serious about encouraging growth in Scotland, the Government should devolve business taxation powers and power over the associated tax credits; we would then see how we got on.

Whatever was said at the start of the statement about growth and productivity, and despite the hyperbole, the big introduction and all the fanfare, this Budget delivers neither of those things, as evidenced by the numbers that the Government have published today.

Shared Parental Leave and Pay (Bereavement) Bill: Instruction

Kevin Hollinrake Excerpts

Instruction
Tuesday 5th March 2024 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

I beg to move,

That it be an instruction to the Committee on the Shared Parental Leave and Pay (Bereavement) Bill that the Committee have leave to make provision about paternity leave in cases involving the death of—

(a) the mother of a child,

(b) a person with whom a child is, or is expected to be, placed for adoption, or

(c) an applicant or intended applicant for a parental order under section 54 of the Human Fertilisation and Embryology Act 2008.

The Shared Parental Leave and Pay (Bereavement) Bill, introduced by the hon. Member for Ogmore (Chris Elmore), was supported by the Government on Second Reading and enjoyed cross-party support from the House. I congratulate the hon. Member on bringing forward this very important Bill. My hon. Friend the Member for Broxtowe (Darren Henry) has also campaigned on the issue.

As it stands, the Bill would require regulations to be made that remove the continuity of service requirement for bereaved partners so that they are eligible for shared parental leave and pay. The Bill aims to provide a parental leave entitlement for bereaved fathers by providing a shared parental leave entitlement, but that is not the only or necessarily the best mechanism available. It is also possible to use parental leave to achieve the Bill’s objective.

[Jim Shannon (Strangford) (DUP)]

There is nobody in the House who does not welcome the legislation and the thought behind bringing it forward. I understand—perhaps the Minister can confirm this—that the Bill will not be law in Northern Ireland, and that it will take a process to make that happen. Will he outline the process that will ensure that those in Northern Ireland have the same opportunities as those the Bill?

[Kevin Hollinrake]

I am very happy to work with the hon. Gentleman to ensure that is the case. We will do everything possible to support those efforts in Northern Ireland.

My officials are working to complete a comparative analysis of shared parental leave and paternity leave entitlements to establish which mechanism is best to achieve the Bill’s intent. To ensure we use the best available mechanism to deliver this entitlement, we are seeking to broaden the scope of the Bill to include paternity leave. In that way, both shared parental leave and paternity leave can be considered in Committee. We are of course working closely with the hon. Member for Ogmore on that.

What is more, the instruction would enable a Committee to consider amendments that would extend the measures to new parents who have their children through other routes, such as adoption or surrogacy arrangements. Where possible and appropriate, the Government aim to afford adoptive and surrogate parents similar employment rights to those we give to birth parents. Employed parents who have their child through adoption or surrogacy arrangements may be entitled to adoption leave and pay, or paternity leave and pay. Extending the provision in the Bill to new parents who have their children through those other routes is consistent with the Government’s stance on this issue. I have discussed this motion with the hon. Member for Ogmore, and I appreciate his support. I commend the motion to the House.