Post Office Horizon Scandal: Compensation Payments

Lord Arbuthnot of Edrom Excerpts

Tuesday 11th February 2025 Lords Chamber

[Baroness Gustafsson (Lab)]

I thank my noble friend for the question. He is right: of the four schemes that are available, two of them are administered directly by the Post Office, while the other two are administered by the Department for Business and Trade. This is a matter that is currently being reviewed by the Department for Business and Trade, and there is consideration being given to whether that administration should be brought within the department. However, as part of that consideration, we cannot inadvertently create some environmental factors that may accidentally slow down the process of those claims. We are looking into this and trying to make sure that we deal with these expeditiously, while ensuring we do not inadvertently create unintended consequences by bringing those within the department.

With regard to the legal claims that are in process and whether those legal fees are addressable, there is significant legal support available for each of the claimants, and those legal fees are being reimbursed. But I understand that the process is a complex one, that people have suffered a great deal already and that the process can be quite cumbersome. Whilst this cannot always be avoided in all cases, the Government have worked hard to try to alleviate some of this by making some fixed-sum offers available, which go some way to making the process a lot simpler for claimants.

[Lord Arbuthnot of Edrom (Con)]

My Lords, the Minister has declared my interest as a member of the Horizon Compensation Advisory Board. Attention has rightly focused on the contribution to be made by Fujitsu to the compensation payable, and I hope it is very substantial, but the auditors of the Post Office, Ernst & Young, should also bear their share of the blame. I asked the chair of the inquiry to include in his inquiry what the auditors knew and did not know, and he decided that that would lengthen the inquiry disproportionately. That means that the auditors who certified that the Post Office accounts presented a true and fair view of the Post Office finances, and yet somehow missed a liability of £1.87 billion, will not be held to account. What can we do about that?

[Baroness Gustafsson (Lab)]

I thank the noble Lord not only for his question but for his significant contribution to the role, and I pay tribute to him for his long-standing commitment to resolving the Horizon scandal and his work within the advisory board. He is right that Sir Wyn Williams’ inquiry chose not to look at the issues concerning the audit of the Post Office. I know colleagues on the advisory board have aired these matters with the Financial Reporting Council, which is the right thing to do, and I look forward to ultimately hearing the outcome from the FRC.