Post Office: GLO Compensation Scheme

Lucy Allan Excerpts

Wednesday 7th December 2022 Commons Chamber

[Grant Shapps]

I add my thanks to the chair of the all-party parliamentary group on post offices for all the work she has done with colleagues over this considerable period of time. I absolutely agree with her about the importance of making sure that this all now happens. She is right to say that Members across the House will be watching that closely, and none more so than the small business Minister, my hon. Friend the Member for Thirsk and Malton, I can assure her.

[Lucy Allan (Telford) (Con)]

I welcome the tone and nature of the statement that the Secretary of State has just made; I am delighted to hear his approach to this. I am also pleased to see at his side the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Thirsk and Malton, who I know will keep postmasters front and centre of everything he does. Post Office workers rightly deserve compensation, but they also deserve justice, and to get justice they need those responsible for the suffering they endured for so many years to be held to account. It is possible that, within the Secretary of State’s Department, there are officials who were potentially responsible for what happened. What can he say to those sub-postmasters who are going to engage in this compensation scheme with an open mind to give them confidence that BEIS will act properly, fairly and promptly in all its dealings with them?

[Grant Shapps]

I can absolutely give my hon. Friend the assurance that, under my tenure, there will be no stone left unturned when it comes to this. I want to pay tribute to her for her work on bringing justice to this important cause; I know that she has had had a number of constituency cases in Telford. I can absolutely reassure her that, whether it is in the Post Office or anywhere else, we will make sure that no stone is left unturned.

Post Office: Compensation for Horizon Scandal

Lucy Allan Excerpts

Thursday 30th June 2022 Commons Chamber

[Paul Scully]

I thank the hon. Lady for her kind words, and I totally echo her thanks and congratulations to the right hon. Member for North Durham (Mr Jones) and Lord Arbuthnot. My hon. Friend the Member for Telford (Lucy Allan) and others sitting behind me have also worked tirelessly on this for so long, as has the hon. Member for Motherwell and Wishaw (Marion Fellows), who chairs the all-party parliamentary group on post offices.

It is not possible to listen to the stories and fail to be moved. There is always something else that comes out and brings a tear to the eye and, frankly, anger that this was ever allowed to happen. The Government have moved to do something about it, but we are all doing something, because this is about a human cost. We are humans first and politicians second.

The hon. Member for Newcastle upon Tyne Central (Chi Onwurah) talked about the timing. There is an application form for the 555 to fill in. It is comparatively simple and Freeths will work with each of them and walk them through the process, because the last thing we want to do is put hurdles in their way. We want to make sure that within a few weeks the money goes out of the door to them. They need the money now. In parallel with that, the compensation scheme has started. We want informal consultation with the 555, to make sure that they are happy with the scheme and have faith and confidence that the funding will be delivered. As I have said, we want the historical shortfall scheme to be wrapped up and to at least make offers to each person by the end of the year.

I think we will be able to start moving quickly on overturning criminal convictions as soon as Lord Dyson has responded through his early neutral evaluation, but that also depends on the flow of cases via the solicitors. I have been working closely with Hudgells and other solicitors who represent the groups, to make sure that it is as speedy as possible.

I can confirm that this will not affect the Post Office’s core funding. We want to make sure that the Post Office has a future, but we cannot have that future until we have rectified the mistakes of the past.

The hon. Lady also talked about Fujitsu, learning the lessons and holding people to account. The next stage of the statutory inquiry starts next week, when the Government, the Post Office, Fujitsu and others will go in front of Wyn Williams. That will start the process of making sure that we know exactly who knew what, who did what and when.

[Lucy Allan (Telford) (Con)]

I thank the Minister for all his good work. Obviously, today is a great day because he has been able to make this statement to the House.

I remain deeply concerned about the role of Fujitsu, UK Government Investments and all those who sent Ministers to this House, even after the Justice Fraser judgment, to say, “Nothing to see here.” That was wrong. I know that Sir Wyn Williams is investigating, as the Minister has rightly said, but will my hon. Friend personally commit to ensuring that those individuals are held to account?

[Paul Scully]

I thank my hon. Friend for all the work that she has done. Having set up the statutory inquiry, what I cannot do at this Dispatch Box, at this moment in time, is direct Sir Wyn towards any particular area of findings. That is for him to do and I want him to remain an independent chair. But we absolutely want to make sure that lessons are learned and that people are genuinely held accountable.

Sub-Postmasters: Compensation

Lucy Allan Excerpts

Tuesday 22nd March 2022 Commons Chamber

[Paul Scully]

I thank the hon. Member for all the work that she does with the APPG, not just on righting this wrong but on the future as well. I thank her for her kind words. This is a moment in time that I hope we can all be really pleased with, as we are moving this on, but it is only a moment in time—it is not finished. There is a lot more of the process to go. I will be judged on this only when I know that the 555 and other members have had the full and final compensation. I accept and agree with that. I want that money to go into the pockets of the postmasters, and I want to minimise legal fees. Clearly the Post Office does not have the resources to pay that level of compensation without affecting the future network, which is why it has been separated so that the Post Office has the future that we all want it to have.

[Lucy Allan (Telford) (Con)]

I thank the Minister from the bottom of my heart for everything that he has done—I am extremely grateful. Does he agree that the conduct of the group litigation by the Post Office was shameful, that it was a war of attrition trying to grind down people who wanted to seek justice, and that it was intentionally trying to stop this coming to light? Thanks to the 555, it is now impossible to ignore. Does he join me in thanking the 555 for their tenacity and determination? Will he ensure that the Post Office apologises for what it has put them through?

[Paul Scully]

I thank my hon. Friend for all the work that she has done on behalf of her constituent Tracy Felstead and the 554 other postmasters. I will not comment on the Post Office, purely and simply because having instigated the independent inquiry, I want it to remain independent. I do not want to put undue pressure on it. Clearly the Post Office has apologised, and I suspect it will not be the last time that it does so. We absolutely want to get answers. I also thank Nick Wallis, who has done amazing work—his life’s work in journalism—in setting out the stall of the 555 and telling their story.

Post Office: Horizon Compensation Arrangements

Lucy Allan Excerpts

Thursday 24th February 2022 Commons Chamber

[Paul Scully]

I thank the hon. Lady, and I sympathise and empathise with everything she said. I know that for everybody affected, whether the 555 or those who were not prosecuted but lost money, nothing will be quick enough, and there is nothing we can do to restore up to 20 years of hurt and distress. On the 555, yes we want to ensure that those people who broke open the case and were the pioneers get full compensation. I am not yet able to outline a resolution for them, but I am working at pace within my Department, and with our legal representatives, Post Office legal representatives, and those of the Justice For Subpostmasters Alliance. I hope to have news for the hon. Lady as soon as possible.

Again, the historic shortfall scheme is not moving as fast as anybody would like. The Post Office has paid the de minimis cases and the most straightforward, smaller amounts. For the rest, it is working through the early cases, which will then benchmark the value of compensation for others. That will then allow the Post Office to start rattling through these cases a lot quicker. The Post Office says that it wants this to be 95% finished by the end of the year. I want to say 100% by the end of the year, and that is the kind of timescale I am working on.

[Lucy Allan (Telford) (Con)]

I thank the Minister for his response, and for his tone. My constituent, Tracy Felstead, is due to give evidence to the inquiry on Friday. She wants people to be held to account, and so do I. We know that civil servants were non-executive directors on the board of the Post Office, and that they were principal accounting officers for UK Government Investments. We know that civil servants told Ministers to come to this place and to tell MPs that there was “nothing to see here.” Those civil servants are not on the list of the core participants giving evidence to Sir Wyn Williams. How can those civil servants be held to account by Ministers for their failure to act in this case for so many years?

[Paul Scully]

I thank my hon. Friend for the work she does on behalf of Tracy Felstead and others. Tracy’s case is one that I often hold up as someone who was so young that she has spent more than half her life under this absolute shadow, explaining to her children now what happened all those years ago. On civil servants, I set up an independent inquiry to get those answers, and it is right that it remains independent. I do not want anybody to feel that they can get away with this, or that they do not have to answer those questions. I will ensure, as I am sure will my hon. Friend, that Sir Wyn calls up exactly who he needs to call as the facts are uncovered, so that everybody answers without fear or favour.

Postmasters with Overturned Convictions: Settlement Funds

Lucy Allan Excerpts

Wednesday 15th December 2021 Commons Chamber

[Paul Scully]

I fully expect the first and third of the hon. Lady’s questions to be dealt with by the statutory inquiry led by Sir Wyn Williams. It is important that he has the space, without my breathing down his neck, to look at this independently and objectively. We can agree that this scandal needs to be righted, and it must never happen again. In terms of the costs, the point of this statement and my previous statement about interim payments is that the Government will be supporting the compensation schemes financially. It is important, given its social value, that the Post Office has a real future, but it will only have a future if we sort out the past.

[Lucy Allan (Telford) (Con)]

I thank the Minister for his statement and for the work he has done in getting to this stage. I also thank the Prime Minister, who has been engaged in this as well. The people who orchestrated this miscarriage of justice have paid no price. A series of Ministers who came to this place, read out their script, looked the other way and did not ask any questions contributed to the suffering, too, and we should all acknowledge that. I do not include the current Minister in that category.

The 555 sub-postmasters who so bravely took on the Post Office through the group litigation, paid for Mr Justice Fraser’s judgment. Surely they should be allowed to be compensated on an equal footing, because it is they who exposed the wrongdoing. We should be thanking them and ensuring that they are compensated equally. Does the Minister agree?

[Paul Scully]

What I have said is that everyone who has been wronged by this should have full and fair justice and full and fair compensation, and I absolutely acknowledge the role of the 555 in pioneering to get us to this position. I will continue to work to see what more we can do to work with the 555 to ensure that they are fully included in what I have just said about justice and compensation.

Income Tax (Charge)

Lucy Allan Excerpts

Thursday 28th October 2021 Commons Chamber

[Barry Gardiner (Brent North) (Lab)]

The mistake with Budgets is to think that they are the beginning of a financial process. Often, they are the result of one. This Budget is the result of 11 years of austerity and under-investment. Wages flatlined, and our public services and infrastructure were ill-equipped for the pandemic and to be the engine of growth that we need to bring us out of the economic crisis it has precipitated.

The Budget is uncomfortable for Conservative Members of Parliament. No Government since the war has implemented a higher tax take from the people of this country.

[Lucy Allan (Telford) (Con)]

The hon. Gentleman said that it has been an uncomfortable Budget for Government Members. I have to say that I am extremely proud of the Budget, and later I will have the opportunity to say why.

[Barry Gardiner]

I am sure that the hon. Lady will explain exactly why she is so proud of the Budget. That is her right. However, it is clear that many of her colleagues feel that it is pulling them in different directions. I will come to explain why that is the case.

As I said, no Government since the war have implemented a higher tax take from the people of this country, yet wages are scarcely where they were 10 years ago, growth in the next three years will slow to a sluggish 1.3% and our country’s debt stands at the astonishing figure of £2.2 trillion. It was notable that yesterday the Chancellor referred to underlying debt rather than gross debt. Underlying debt is still a staggering 85.2% of GDP and, on his own admission, set to rise over the next three years. Gross debt is now 103% of GDP.

What of the deficit? After the global financial crisis had seen it skyrocket from £50 billion to £103 billion in 2010, George Osborne said he would eliminate it by 2015. The deficit at its peak in 2010 was £103 billion, or 6.9% of GDP. At year end in March, the last ONS release said that the UK’s deficit was £304 billion, or 14.5% of GDP. The hon. Lady may not feel uncomfortable about that, but I think that a number of her colleagues do, yet the Chancellor had the extraordinary brass neck to the tell the House that

“it is the Conservatives, and only the Conservatives, who can be trusted with taxpayers’ money.”—[Official Report, 27 October 2021; Vol. 702, c. 276.]

The Chancellor talked about building a stronger economy. His party has had 11 years to do that and it has failed. What should be of real concern is the Budget’s lack of direction. There is an extraordinary tension between No. 10 and No. 11, which are operating like a Doctor Dolittle character, with the Chancellor pushing for fiscal conservatism and the Prime Minister pulling for a bout of sunny optimism and lax monetary control. The truth is, they are afraid of the electorate and it showed in their spending decisions.

The Government are rightly relaxing the public sector wages freeze—to the horror of their Back Benchers—but they have wrongly imposed a £4 billion clawback on the very poorest in our society who rely on universal credit. Their changes to the taper relief show only how fearful they really are, but those changes do not nullify the impact of the clawback.

The Government have no strategy to tax wealth on unearned income. It is shameful that a cleaner on universal credit doing three jobs to make ends meet pays a higher rate of marginal tax and national insurance than her landlord. It is extraordinary that, instead of working with international partners to develop a proper tax framework for companies such as Amazon, they have done all they can to block one. It is extraordinary that the Chancellor has given £1 billion of tax cuts to the banks. Working families get tax rises; banks get tax cuts.

Priorities are the stuff of politics and the Chancellor has made his party’s priorities clear. But, in addition to the wrong priorities, the Government have been incompetent and profligate. The total investment announced yesterday for the next three years was £150 billion. That same day, the Public Accounts Committee reported that, despite being allocated an eye-watering £37 billion, Test and Trace failed to achieve its objectives, failed in its key purpose and, at the most critical time, failed to disrupt onward transmission. The Prime Minister had a phrase for money wasted like that—it referred to something being done up a wall. Delicacy prevents me from saying what it was.

The past 11 years of Conservative Government have seen our economy grow at just 1.8% per annum. Even taking into account the impact of the global financial crisis, in the years from’ 97 to 2010, when Labour were in government, the economy grew by 2.3%. No wonder the only person on the Conservative Benches to look pleased at the Chancellor’s discomfiture yesterday was the Foreign Secretary. The truth is he has taxed more and more unwisely, while presiding over unacceptably slow growth.

Many of us will recall the Government’s response to Labour’s manifesto commitment to invest £200 billion in the infrastructure of the country. They called it a magic money tree, but since then they have discovered a forest, even if their £130 billion infrastructure strategy now looks scarcely adequate to turbocharge our economy in the way that is required.

Let me now turn to the way that is required. It is to be regretted that the Chancellor does not use public transport when in London. Were he to do so, he would have seen the poster campaign that says, “The world is looking to you, COP26.” One of those posters says, “Secure our priceless planet. Or argue over cost.” Yesterday, the Chancellor could truly have given us a Budget of optimism: a Budget that addressed the infrastructure needs of our country, the skills development required for a just transition to a net zero economy, and the basis for sustainable economic growth. He failed, and did so in a way that displayed such an astonishing lack of awareness of the problem and what one can only call contempt for the reality of the crisis that it appeared a deliberate provocation to all those about to meet this weekend in Glasgow for COP26.

The Chancellor referred to the tax super-deduction of 130% allowances for capital investment. He failed to mention that these have no environmental or climate filter and that some of the biggest fossil fuel companies will be able to use them to receive from the taxpayer not only the entire cost of their polluting capital investments but a bonus 30% for doing so, in projects like the Cambo oil field,. This incentivises the very behaviour COP26 is trying to curtail.

The Chancellor announced a new lower rate of air passenger duty on domestic flights and support for regional domestic airports to incentivise air travel within the UK. Other countries have banned domestic flights where a fast rail link exists and have been investing in their low-carbon rail infrastructure. It is, frankly, obscene that it is often cheaper to fly within the UK than to take the train. My hon. Friend the Member for Bristol South (Karin Smyth) earlier remarked that a flight from her constituency in Bristol to Glasgow costs just £29.99, while the train costs £97.20. The Government’s investment priorities on this are wrong. They are wrong economically and they are wrong morally.

--- Later in debate ---

[Lucy Allan (Telford) (Con)]

Thank you, Mr Deputy Speaker, for calling me to speak in this important debate. I thank the hon. Member for Ceredigion (Ben Lake) for what I see as a perfect model of constructive opposition. He gave a thoughtful, considered and helpful speech; I hope that the Treasury takes up some of the points that he raised. I thank him for making that contribution to the debate.

I am extremely grateful to the Chancellor for supporting businesses in my community throughout the pandemic and protecting jobs. There is no doubt that there is still a very challenging and difficult environment for businesses, so of course I welcome all measures in the Budget to support business. I pay tribute to the many businesses that have struggled and struggled, but succeeded in getting through the pandemic with the help of the Chancellor. They have my full support as we move forward in what will continue to be a challenging time.

I would like to congratulate Mr John Ellis, a publican in my constituency. John, who runs the Elephant and Castle in Dawley and the Crown Inn in Oakengates, has campaigned for his sector harder than any constituent I have ever met. Throughout the pandemic and in the prelude to the Budget, he wrote letters to me and to the Chancellor; he met me; he bought me pints of beer. He gave me a full insight into the very serious challenges that the pub sector faces. Mr Ellis may not be 100% satisfied with the Budget and its measures for supporting pubs and hospitality, but I know that he will be delighted by many measures in it.

I am extremely proud of this Budget. I am proud of it because it is a Conservative Budget—a Budget that supports families and incentivises and rewards work.



Like all other Members—whether they will admit to it or not—I am delighted that this Budget puts more money into the pockets of the lowest-paid constituents in Telford, and specifically provides support for the struggling families whom we must support if we want to create opportunity for young people. As we all know, whether we admit it or not, these measures will make a real difference to the lives of our constituents, particularly those who struggle the most.

At the heart of the Budget are incentives and rewards for those who work The universal credit policy that we now have is by far the most effective tool in helping people back into work. We on this side of the House do not agree with disincentives to work and keeping people trapped on benefits, and I know that many on the other side also believe in helping people back into work. The incentives in the Budget are welcome because a job gives people so much more than a route out of poverty. It gives them a sense of identity and of belonging—they are part of a community—and of personal responsibility, and they are surrounded by a support network which is particularly helpful in tackling the mental health issues that so many people have experienced during covid. That is why I am so grateful to the Chancellor for, since the start of the pandemic, prioritising jobs and skills as key to our economic recovery.

I particularly want to draw the Chancellor’s attention to the fantastic work being done at Telford College in my constituency in respect of skills such as engineering, HGV training, digital and maths. In almost every sector one could think of, the college is delivering opportunity across our community, and, vitally, providing local businesses with the skilled people whom they need in order to succeed. I invite the Chancellor to come to see this inspiring college for himself: I know how impressed he will be by students and teachers alike.

I must also thank the Chancellor for the levelling-up money that has been coming to Telford. Earlier in the year we were awarded £22.3 million, and an additional £1 million for an exciting programme of projects that will build opportunity across our community. The jewel in the crown was a digital and maths hub to provide access at every level to all who want to improve their skills. My thanks must go to the town deal board for its work on this, and to our excellent council officers, who are as dedicated as I am to Telford’s future. The Budget has also confirmed the provision of a diagnostic health hub at the Princess Royal Hospital to tackle the backlog. That is desperately needed. While the health challenges that face Telford are perhaps a subject for another debate, there is no doubt that this will change lives, and we are truly fortunate to have been selected as one of the areas to receive such a hub.

Let me sound a note of caution. My constituents understand full well that getting the NHS back on its feet will take time. They understand full well that it will cost money, and they understand full well that they must make their contribution and share the pain of paying for it. My constituents are reasonable people who want the NHS to succeed. However, they want to know that their money, the levy money, will be spent wisely. I hope it will feature clearly on payslips, so that people have an understanding of the significant contribution that they are making to healthcare and social care. I want it to be spelt out, because I think that that will help to bring greater accountability to health trusts and boards to ensure that they deliver good-quality healthcare for my constituents and their families, rather than spending money on shiny projects such as state-of-the-art specialist units to which local people may never need access. We have seen that happening in Telford: having already been given £312 million for a specialist unit upgrade, the health bosses decided to put in a further bid for £560 million.

I understand that we all want to invest in better hospitals, but this really is not about buildings. As we emerge from the pandemic and try to recover and ensure that the NHS gets back to functioning at full capacity, I urge the Chancellor not to give money to those kinds of projects but to invest in tackling our backlog, as he has done in this Budget, and in ensuring that people can access their GPs and get through to them on the phone. That is what local people really want. They want better healthcare that they can access.

I would like to end by saying that sometimes it is good to say thank you, as I have been doing throughout my speech. There are those who say that the money is never enough, that things are never good enough and that Telford is missing out, and my local Labour council is never satisfied, no matter how much money comes to Telford. It very nearly scuppered the Telford levelling-up bid by saying that it had been cancelled. This upset not only the towns fund board but many people who were invested in that project. It is important to recognise when things are going well, and to look at what is getting done despite the extraordinarily challenging circumstances.

All of us in this House know that Ministers have given their all to get us through the pandemic and out the other side and to rebuild our economy, and I am grateful to every single one of them, whether or not I agree with everything they say and do. They have tried their best and given their all, and we all owe them a debt of gratitude. My constituents are grateful to the Prime Minister. On that note, Mr Deputy Speaker, I would like to thank you for including me in this debate, which I much appreciate.