Aerospace Industry: Northern Ireland

Sarah Jones Excerpts

Monday 22nd July 2024 Commons Chamber

[The Minister of State, Department for Business and Trade (Sarah Jones)]

I thank the hon. Member for Strangford (Jim Shannon) for introducing this debate tonight. I had wondered who was going to intervene on him as he could not intervene on himself. I am grateful that several hon. Members did the job for him. I also want to thank him for his dedicated support for Northern Ireland’s remarkable aerospace industry, which is founded on strong engineering heritage and is rich in knowledge, skills, experience and technology. Indeed, as this is my first time at the Dispatch Box since I was given this ministerial appointment, I am delighted that it is to discuss and highlight the Government support for the Northern Ireland aerospace sector.

I can absolutely assure the hon. Member and the whole House that this Government will work tirelessly to deliver economic growth in Northern Ireland and across all corners of the United Kingdom, so that we can drive inward investment, enable British industry and businesses of all sizes to grow and prosper, and give working people more secure employment.

[Gavin Robinson]

I am grateful to the Minister for giving way. I congratulate her on her appointment and wish her incredibly well.

May I encourage the Minister to access the Royal United Services Institute report into defence spending in Northern Ireland? When she reads it, she will recognise that Northern Ireland to date has received one fifth of the UK average spend on defence per region around the United Kingdom. There is a huge opportunity for her to increase support and investment for Northern Ireland and for the industry at the heart of this debate.

[Sarah Jones]

I thank the right hon. Gentleman for that intervention and for adding to my reading list, which is already quite substantial, as I am sure he can imagine. Our wonderful civil servants are keeping us very busy with all the things that we need to read, but, indeed, I will look at that report, as he suggests, and am happy to do so.

Delivering an industrial strategy is at the centre of the Government’s growth mission alongside our goal of becoming a clean energy superpower. We want to create the right conditions for the green industries of the future to flourish, enabling those key sectors not only to transform the UK economy, but to become world leaders in their own right.

Aerospace is crucial to this growth mission, with investment in research and development key to delivering the next generation aircraft for sustainable flight. That is why I am very much looking forward to attending the Farnborough International Airshow tomorrow for the first time as a Minister. I will be meeting UK aerospace companies and see for myself the vast array of pioneering products and services being sold across the globe. I am hoping to see all the partners involved in the Spirit discussions tomorrow and to talk to them about this topic.

[Jim Shannon]

I understand that there is a tent at the Farnborough show that has a Northern Ireland section. I am sure that the Minister will attend that show, and have a chance to interact with the companies there. Sometimes people say that if Ministers go there, they get them for about 15 minutes. I suggest that she spends a wee bit longer there.

[Sarah Jones]

I am delighted that the hon. Member has intervened in his own Adjournment debate. I will be there at the UK stand tomorrow, and we will see what Northern Ireland has on display. I will spend as much time there as I can. I am there for the whole day, so I hope that I will spend some good time there.

As Members will be well aware, Northern Ireland has a long and impressive history in the aerospace industry. This Government are in lockstep with the sector’s ambitions to grow, compete on the world stage, and ease the transition to net zero flight. Today, the aerospace sector supports nearly 240,000 jobs, with almost half of those employees directly employed by aerospace companies. Some 5,000 of them are in Northern Ireland. The sector as a whole is worth some £30 billion. Despite all the achievements, we recognise that the past years have been challenging for the sector, with the chaos and uncertainty of the previous Government, and the global shocks of covid, the war in Ukraine and the disruption in the Red sea. We know that the impact of those issues persists.

[Adam Jogee]

I know that in a previous life the Minister spent a lot of time working in and on Northern Ireland, so we are listening very carefully indeed. Labour Members are rightly very proud of devolution, and what it has meant for all parts of our United Kingdom. What engagement has she had, and will she have in the months ahead, with the Northern Ireland Executive on this and associated issues?

[Sarah Jones]

I welcome my hon. Friend to his place in this House. A really important aspect of the way that the Prime Minister has set about government is his telling us all that we must work together much more closely on issues that affect the United Kingdom as a whole. That means working across Government Departments and across the nations and regions. We are setting up structures to do that. The Under-Secretary of State for Northern Ireland is already talking at length to colleagues, and we have had conversations across Government on these issues already.

[Alex Easton (North Down) (Ind)]

Thousands of people in my constituency of North Down work in the industry. Will she consider a visit to my constituency to visit those factories? It would be a great honour for us, and she would see at first hand what is going on. It would be greatly appreciated by the hon. Member for Strangford (Jim Shannon) as well.

[Sarah Jones]

I thank the hon. Member for his intervention. I am of course happy to visit whatever I can. One of the best ways of understanding the issues is to go and see things for myself, and I would certainly like to do that. The Under-Secretary of State for Northern Ireland has been in Northern Ireland frequently, and we went there a few weeks before the general election was called. It was incredibly powerful to see the ambition in the business community in Northern Ireland to get things moving and growing.

The industry faces resourcing constraints, and shortages of materials and capacity. That situation is forcing some major manufacturers to slow down their planned production rates. Given all those challenges, it is only right that we support aerospace manufacturers in Northern Ireland and across the UK, and the industrial strategy will be the cornerstone of that work. We believe that the strategy will grow our share of the global aerospace manufacturing market, unlock huge investment opportunities that will fuel research and development, and create new high-skilled, high-paid jobs across the economy, including in aerospace. The Government will work in close partnership with the aerospace sector, support clean growth and continue to develop joint Government and industry strategy through the aerospace growth partnership sector council—a partnership that reaches businesses and the research base in every part of the United Kingdom.

I am aware that the hon. Member for Strangford’s debate is focused on Northern Ireland, so let me turn to Northern Ireland in greater detail. First, I recognise his reference to Harland & Wolff. As he will be aware, my right hon. Friend the Business Secretary gave an update to the House this morning via a written statement, stressing the fact that we are working with Members, the Northern Ireland Executive, trade unions and other partners to support a positive outcome for all affected sites across the UK and for its workers.

Moving back to aerospace, as the hon. Gentleman said, there are at least 120 companies in Northern Ireland supplying to every major commercial aircraft programme, boasting expertise in everything from composite design and manufacturing to precision machining and more. As he also said, one third of global aircraft seats are made in Northern Ireland, as of course are the advanced composite wings of the Airbus A220 aircraft.

It is the week of the Farnborough international airshow, and a week in which we have announced over £100 million for cutting-edge new green aerospace technologies, so the hon. Gentleman’s debate has touched down with excellent timing, particularly as I recognise—we need to cover this—that there is of course concern about the expected change in ownership of the region’s largest advanced manufacturer, Spirit AeroSystems’ Short Brothers. Short Brothers is best known for its award-winning advanced composites technology, developed and deployed on the A220 wing. The innovative design and manufacturing technique received recognition in 2019 from the Royal Academy of Engineering, the highest honour awarded to an engineering project.

Shorts employs 1,500 people on the A220 programme, supported by £113 million through a repayable funding partnership with the Northern Ireland Executive and the previous Labour Government in 2009. The ability to manufacture a complete wing in one facility is a credit to those who work there. That builds on the legacy of more than 100 years of Northern Ireland aerospace. Airbus is now working on ramping up production, and announced in April this year that it would be increasing the production rate per month to 14 aircraft by 2026. With more than 550 orders to deliver, and the likelihood of further orders to follow, this provides great certainty for the company, its employees and the Northern Ireland economy.

On the acquisition of Spirit and Shorts, Boeing and Airbus announced on 1 July that they will acquire parts of the Spirit AeroSystems global business. Boeing plans to take nearly all of Spirit’s Boeing-facing business, mostly those parts located in the United States. That sale is, however, subject to the sale of certain other Spirit operations to Airbus. Airbus and Spirit have agreed, subject to final terms, that Airbus will acquire the A220 wing and mid-fuselage. These are built by Short Brothers at its A220 wing production facility and its other Northern Ireland sites.

Spirit plans to sell its remaining Belfast operations—the non-Airbus programmes—alongside its facility in Prestwick, to another company. These advanced manufacturing sites offer engineering centres of excellence with engineering-backed capabilities, which Spirit assures us will prove to be an attractive proposition for potential buyers. Commercial negotiations are continuing as the parties work through the details of the acquisition and work towards finalising terms, with an expectation that the transaction will close in mid-2025.

The Government are working with the Northern Ireland Executive to help to ensure the best outcome for Short Brothers and all its highly skilled and hard-working staff. We have a keen interest in seeing that any acquisition includes a commitment to develop Short Brothers and its supply chain and provides the best possible opportunity for growth in Northern Ireland. That is because the Government have a clear vision for the future of aerospace across the whole UK.

We are providing support for technology development for the next generation of aircraft and engines through the Aerospace Technology Institute programme, which provides collaborative funding to companies based in Northern Ireland and the rest of the UK. That includes the isothermal variable-volume infusion, or IVI, project that we announced earlier today at Farnborough international airshow—a £10 million project led by Short Brothers to produce lighter, more structurally efficient aerostructures, enabling the transition to new sustainable aircraft. The Government will also continue to work in partnership with the Northern Ireland Executive on opportunities for growth and investment.

In summary, the UK has a vibrant and hugely pioneering aerospace sector. It is a central cog in our manufacturing economy and will play a hugely important global role in decarbonisation and net zero, nurturing some of the highest-skilled jobs and most advanced technologies in the world. UK aerospace companies and their supply chains will be at the heart of our transformative industrial strategy, and I know the Northern Ireland aerospace sector will play a pivotal role in the success of the UK sector as a whole, and in the growth and success of UK manufacturing and industry.

Question put and agreed to.

Oral Answers to Questions

Sarah Jones Excerpts

Thursday 2nd May 2024 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Sarah Jones (Croydon Central) (Lab)]

No commitment to virgin steel from the Minister, then—what a shame. I welcome him to his place, and note that he visited Port Talbot steelworks last week, but he failed to meet any actual steelworkers of course. Instead of avoiding discussing the Government’s plans for £500 million of taxpayers’ money for the loss of nearly 3,000 jobs, will he please commit to meeting some Port Talbot steelworkers, and will he publish his economic assessment of the impact of the UK losing its capacity to make virgin steel—or is his actual plan to just keep his head down until the Prime Minister finally has the guts to call a general election and leave all these problems piling up for somebody else?

[Alan Mak]

This Conservative Government have given more support to the steel sector than any Government before us. When I went to Port Talbot, I was pleased to meet steelworkers, and I will continue to do so. I also sit on the transition board. I will continue to support steel in south Wales and all the opportunities that the sector will bring.

Oral Answers to Questions

Sarah Jones Excerpts

Thursday 25th January 2024 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Sarah Jones (Croydon Central) (Lab)]

Mr Speaker:

“The UK steel industry, the trade unions, and Labour are…proposing an industrial policy worthy of a serious industrial country.”

Those are not my words but those of the world economic editor of The Daily Telegraph writing yesterday. He also said that

“the Government’s minimalist plan…does just half the job, leaving the UK with a stunted second-tier industrial base, the only G20 country lacking a sovereign capability in ‘weapons grade’ primary steel.”

He is right, isn’t he?

[Ms Ghani]

The £28 billion that Labour is proposing has no plan behind it, and we are not told what hard workers across the country would have to pay to fill that black hole. Labour has asked for a transition to green steel. It would want us to protect steelworkers and obviously would want to protect advanced manufacturing in the UK. Customers want cleaner steel. Port Talbot could no longer function with its ageing blast furnaces, and our package will save 5,000 jobs at Port Talbot.

Post Office (Horizon System) Compensation Bill

Sarah Jones Excerpts

2nd reading
Tuesday 19th December 2023 Commons Chamber

[Sarah Jones (Croydon Central) (Lab)]

It is timely to be having the debate on the day we rise for Christmas, as we know that there will be many decent people affected who, 20 years on, are spending yet another Christmas without proper compensation. It has been a short but sobering debate on the victims of the Horizon scandal and how the Government intend to ensure justice is delivered. I am pleased to sit opposite the Minister again and to hear his commitment to a full and fair process, and I am pleased that the Bill is going through this place. However, the need to extend Government powers to deliver the compensation scheme is, of course, disappointing news to those affected.

I will not keep the House long to summarise our support for the Bill, to thank all those who have campaigned for so long and to ask the Minister to respond to some important points that have been raised. As Members have set out, the Bill extends the powers for the Government to deliver one of the compensation schemes for some of the victims of the Horizon scandal beyond August 2024. I join others in thanking those who have got us to this point. I pay tribute to the Justice for Subpostmasters Alliance, which has campaigned for decades for compensation and justice. We could not have a debate in this place on this topic without thanking my right hon. Friend the Member for North Durham (Mr Jones), who has been tireless in his work. I thank Lord Arbuthnot for his work in this area, and many others.

The Horizon scandal is one of the most insidious injustices our country has ever seen. Getting compensation to all victims as quickly as possible is vital if we are to right this injustice. As the shadow Minister, my hon. Friend the Member for Bethnal Green and Bow (Rushanara Ali), made clear at the start of the debate, Labour will work with the Government to do whatever is required to deliver justice.

There were some good speeches. The hon. Member for Sutton and Cheam (Paul Scully) worked hard as a Minister and is right to be proud of what he did in this area. It is good to see that he has eased himself back into the Back Benches. I noted his praise, which is increasingly rare, for Boris Johnson for starting the process for the inquiry. I am sure the Minister noted his lesson that if we were doing this from scratch, the Business Department would perhaps have run all the compensation schemes in the first place. The hon. Gentleman is right that we talk about doing things “at pace” in this place all the time, but we just mean quickly. We need to keep up the speed, which has been sadly lacking, given that we are 20 years on from the original scandal.

My right hon. Friend the Member for North Durham gave a full, comprehensive and compelling speech. His quotes from his constituent Tom Brown were very moving, given that his constituent did not survive to receive his compensation. My right hon. Friend spelled out the indignity of his experience, describing how he was the pillar of his community, and how awful the situation had been for him and his family. I noted my right hon. Friend’s suggestion about the need for counselling for some people, because this has been extraordinarily impactful—way beyond financial terms.

My right hon. Friend also talked about the lessons that the Government need to learn. I noted his advice for Ministers and future Ministers. Without jumping to any conclusions, Mr Deputy Speaker, I took that advice, as did the shadow Minister, my hon. Friend the Member for Bethnal Green and Bow. He talked compellingly about the clear evidence that the Post Office knew what the problems were, yet still spent all that money defending the indefensible. He was right to make that point so powerfully.

Questions about Fujitsu and others were well made by the right hon. Member for East Antrim (Sammy Wilson). My hon. Friend the Member for Merthyr Tydfil and Rhymney (Gerald Jones) made a good final speech, in which he called on the Minister to explain why the target has been missed and what more can be done.

This may be a relatively straightforward, simple piece of legislation, but it does relate, as all Members have said, to one of the UK’s most widespread miscarriages of justice. We have heard tales of people who have been affected. So many of them spent their 60th birthday in prison as a result of errors. Other people lost their entire life savings repaying shortfalls. My hon. Friend the shadow Minister talked about Seema Misra, who was pregnant with her second child when she was convicted. She had an absolutely awful time. Local press reports at the time described her as “a pregnant thief”, which is horrific. We need to keep those stories at the heart of everything we do while we try to make sure that people get the compensation they deserve.

Mr Deputy Speaker, we support the passage of this Bill, but we do have some questions that we would like the Minister to address, many of which have been set out today. The key one is what the Government will do in this extra time to ensure that compensation is delivered as quickly as possible. The Minister said that the Government are setting a target of 90% being completed within 40 working days. He used the expression, “promptly without being rushed”. Will he elaborate a bit on what that means in terms of the resource and the capacity that will hopefully increase the number of cases moving through the system to get to a happy conclusion?

Alan Bates, who has been widely praised in this debate and who leads the Justice for Subpostmasters Alliance, is reported as saying:

“It’s all well and good extending the deadline, but the Government has to try to meet the current deadline. The lives of the victims who have lived with this for a long time are not being extended.”

That is a good and sobering point. It would be helpful if the Minister said more about how he is going to speed up that work.

The Minister also made broader remarks. Can he clarify from his earlier remarks how many people have reached a settlement using the £600,000 offer that he announced? He said something about a proportion, but it would be helpful if he could give us a number. Does he have any estimate of the proportion of victims that he considers to be fully compensated? Does he have a timescale for the completion of compensation for those he considers not to be fully compensated? When does he hope to have all this done by?

The Minister has been asked how he will ensure that mistakes like this are not made again. Obviously, we have the inquiry, which is carrying on at its own pace. I do not know whether he has done any work on learning those lessons, so that we do not make mistakes like this again.

As we close the debate, I wish to end by again putting on the record our thoughts for all the victims who have not had their cases solved and who face another Christmas without justice.

Oral Answers to Questions

Sarah Jones Excerpts

Thursday 30th November 2023 Commons Chamber

[Ms Ghani]

My hon. Friend is first and foremost an advocate for the steelworks and steelworkers in her constituency. Obviously that letter will be on its way, and I thank her so much for raising it.

[Sarah Jones (Croydon Central) (Lab)]

We are used to this Government flip-flopping all over the place. It would be funny if it were not so serious for business, exports and jobs. So when we heard the Treasury telling everyone who would listen that the Government’s response to the carbon border adjustment mechanism would be in the autumn statement, we were not surprised that it was not. The future of steel investment and growth relies on a clear and certain path from Government. We cannot have our business disadvantaged any more, so what is the decision on the CBAM? If this Government cannot decide, is it not time to make way for one who can?

[Ms Ghani]

Decisions have to be taken while responding to the consultations that take place. We have been absolutely determined to ensure that steelmaking will remain competitive in the UK, which is why we have been able to support the steel sector with high energy costs and put over £1 billion in place to deal with decarbonisation technology. When it comes to Tata, the support we have pledged involves an investment of over £1 billion to ensure that jobs remain secure in the future, and negotiations continue with British Steel as well. That is the support that we have provided and will continue to provide for steel in the UK.

Draft Recognition of Professional Qualifications and Implementation of International Recognition Agreements (Amendment) Regulations 2023

Sarah Jones Excerpts

Tuesday 28th November 2023 General Committees

[Sarah Jones (Croydon Central) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Mark. I am pleased to contribute to this important topic on regulations relating to the free trade agreement that the UK made with Norway, Iceland and Liechtenstein in 2021, bringing the FTA’s recognition of professional qualifications into domestic UK and devolved law.

The Minister will be pleased to know that the Opposition will not vote against the regulations this morning. Having qualified professionals contributing to the economic success and social fabric of our country is crucial. The UK’s public, private and voluntary sectors are greatly enriched by the contribution of overseas professionals, including thousands from Norway, Iceland and Liechtenstein.

Foreign workers are also vital in the context of the well-documented shortages that this country has suffered in drivers, carers, nurses, doctors and vets, and in hospitality and farming. Perhaps the most well known is the contribution of overseas professionals to the NHS, in which nearly one in five workers comes from overseas. We are hugely grateful to those key workers, especially for their efforts during the pandemic. Without a system of recognition of professional qualifications, the contribution of many thousands of key workers would be impossible. However, it is important to note that the recognition of overseas qualifications is not a silver bullet to end skills shortages in the UK; it neither could nor should be the long-term answer.

The regulations are largely non-contentious, but I have a few questions for the Minister. First, on the UK labour market, are there any particular staffing gaps in the UK that the Government hope to address with this measure? Do they expect the new recognition of professional qualifications system to have any bearing on immigration levels? Will the Minister outline which sectors may be most affected by the changes?

Secondly, on the regulators of professional qualifications, enabling regulators to recognise qualifications drives up standards of practice, gives confidence to UK employees and consumers and improves contracts for workers. The public rightly expect the UK’s high standards of health, public safety and consumer protection to be maintained, and the quality and expertise of our regulators underpins that professionalism. The Department for Business and Trade acknowledges that some regulators may be required to change some of their processes as a result of this measure, but if a full impact assessment has been carried out, it has not been made public. Will the Minister therefore outline whether the Government assessed the extent of the requirements, and will he outline the areas where their impact will be most severe?

The Government also acknowledge that some additional costs may fall on regulators as a result of these changes, but they have put no figures on what they might be. Will the Minister outline whether an assessment has been made of what those additional costs will be? Do regulators need additional funding and resources to deal with them, or will they be expected to pass on any costs?

Finally, on transparency, in the explanatory memorandum the Government said that their consultation with regulators, which the Minister referred to, received “generally supportive” feedback but, as the Secondary Legislation Scrutiny Committee report highlighted, that consultation has not been published. Does the Minister agree that, in the interests of a transparent process, it is important for the Government to publish that consultation, and that they should publish future consultations in advance of presenting such statutory instruments to the House?

The Opposition want to promote opportunity, trade and standards through the recognition of professional qualifications. We have no overall objections today, but I would be grateful if the Minister can address those concerns.

Post Office Compensation

Sarah Jones Excerpts

Monday 18th September 2023 Commons Chamber

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

With permission, Madam Deputy Speaker, I will make a statement on the latest steps the Government are taking to ensure that swift and fair compensation is made available to postmasters whose Horizon-related convictions are overturned.

This House is aware of the distressing impact that problems with the Post Office’s Horizon IT system have had on the lives and livelihoods of many postmasters. Starting in the late 1990s, the Post Office began installing Horizon accounting software, and over the years the Horizon accounting system recorded shortfalls in cash in branches. Between 1999 and 2015, those shortfalls were treated by the Post Office as caused by postmasters, and that led to dismissals, recovery of losses by the Post Office and, in some cases, criminal prosecutions. We now know that Horizon data was unreliable. I pay tribute to colleagues on both sides of this House, and in the other place, who have supported postmasters in their efforts to expose the truth and see justice done.

The Government have supported the Post Office to make significant interim payments up front—set at £163,000—to those with overturned Horizon convictions. We are also funding the Post Office to reach final settlements with these postmasters. To date, 86 convictions have been overturned. The Government and the Post Office have been clear that we want to see the victims receive swift and fair compensation. I have been monitoring the delivery of compensation to those with overturned convictions, and more than £21 million has been paid out to date. Although good progress has been made on personal damages, such as for mental distress and loss of liberty, thanks in large part to a successful early neutral evaluation process overseen by Lord Dyson, progress on full and final settlements has been slower.

That is why I can announce today that the Government have decided that postmasters who have their convictions on the basis of Horizon evidence overturned should have the opportunity, up front, to accept an offer of a fixed sum in full and final settlement of their claim—the sum will be £600,000. It will not be up to £600,000; it will be £600,000. There will be no requirement for evidence to support the claim, other than the ability to demonstrate that the individual has an overturned conviction. We have arrived at that figure by looking at existing claims that have been processed and applying a generous uplift. This will be delivered by the Post Office, with funding from the Government. To be clear, this up-front offer is available to those postmasters whose convictions have been overturned as they were reliant on Horizon evidence at the time. This payment will be made net of any sums already received, such as interim payments and partial settlements, to settle the claim fully.

Any postmaster who does not want to accept this offer can, of course, continue with the existing process. It will therefore be completely optional to accept the offer of £600,000, and the Government will continue to fund the legal costs of these postmasters to ensure that they receive independent advice ahead of making a decision. However, we hope that the change I am announcing today will provide more reassurance and quicker compensation to those postmasters who would prefer this option over going through the full assessment process. Almost certainly, there will be fewer people taking the option of the full assessment process. To be clear, any postmaster who had their conviction overturned as it was reliant on Horizon evidence and who has already reached a settlement with the Post Office for less than £600,000 will be paid the difference.

Postmasters who have been wrongfully convicted have some of the most severe circumstances, having lost clean records and, in some cases, their liberty, and having suffered significant financial losses and an overwhelming impact on their lives. The Government recognise that those postmasters have suffered gravely in relation to the Horizon scandal, and for too long, and so should be able to settle their claim swiftly if they wish. The Post Office is contacting the legal representatives of eligible postmasters with further information about this offer. I appreciate that some details will need to be worked through, such as how long the up-front offer remains open. I am committed to consulting the Horizon Compensation Advisory Board, which includes Members of this House, such as the right hon. Member for North Durham (Mr Jones), and Lord Arbuthnot, on this matter to make sure we get this right. However, we did not want to delay informing postmasters that there will be an optional quick and straightforward route to settlement. Postmasters may choose to have their claim fully assessed if they prefer, whereby each claim is assessed on the basis of its individual losses.

The Post Office will continue to process these claims as quickly as possible and we are encouraging it to continue to work actively with postmasters’ legal representatives to make offers and payments as soon as possible. The Post Office has made offers to all 73 formerly convicted postmasters who have submitted a claim for non-pecuniary damages—non-financial personal losses. Awards for non-pecuniary damages are guided by Lord Dyson’s early neutral evaluation. With regard to pecuniary damages—financial losses—only 21 claims have been submitted to date and the Post Office has made offers on 12 of these, five of which have been accepted.

The Post Office has been engaging with claimant advisers on pecuniary principles for assessing financial losses to support swifter formulation and assessment of claims. The Post Office plans to move to a remediation model of claim assessment, involving an independent assessor to facilitate settlements and resolve disputes. This remediation approach will bring greater transparency to the existing process.

We know that hundreds of postmasters were convicted during the period when Horizon was in use. The Post Office contacted over 600 postmasters to help them to appeal their conviction and that work was later taken over by the Criminal Cases Review Commission as an independent party. However, still only 86 convictions have been overturned to date and we recognise that there are a number of postmasters who have not yet sought to appeal their conviction. It is for the courts to decide whether a conviction is unsafe, but we encourage all postmasters who think their conviction may be unsafe to come forward and start the process. We hope that being transparent about the level of compensation available via a straightforward route will encourage even more people to seek to overturn their conviction.

I am pleased to provide the House with an update on the other areas of Post Office compensation. To date, £79 million has been paid under the Horizon shortfall scheme, with offers made to 99% of the original cohort of applicants. The Post Office has made offers for 58% of eligible late claims.

Under the group litigation order scheme, the Department has paid £22 million to date. We also announced interim payments in June last year, and 99% of claimants have received the share of the £19.5 million to which they are entitled. The scheme opened for full applications in March this year. To date, 32 claims have been submitted and first settlements have been reached. I am pleased to inform the House that my Department will be publishing data online regularly on the progress of compensation delivery.

In addition to providing compensation, it is important that we learn lessons so that something similar can never happen again. That is why the Government have set up the Post Office Horizon IT inquiry and put it on a statutory footing to ensure it has all the powers it needs to investigate what happened, establish the facts and make recommendations for the future. The inquiry is progressing and we will continue to co-operate fully to ensure that the facts of what happened are established and lessons are learned. I commend this statement to the House.

[Sarah Jones (Croydon Central) (Lab)]

I thank the Minister for his statement and for advance sight of it. This is, of course, an issue of great importance and I thank him and his Department’s civil servants for the progress they have made and the work that has gone on to achieve it.

As this is my first time speaking on the matter from the Front Bench, may I put on record my tribute to the Justice for Subpostmasters Alliance and to all those who have campaigned for decades for compensation, justice and truth? I also recognise the efforts of Members across the House on behalf of their constituents, as well as the work done by colleagues in the other place. In particular, I thank my right hon. Friend the Member for North Durham (Mr Jones). As the Minister said, he is unable to be in the House today but he has played an instrumental role in helping to chart a route to justice for thousands of people and we wholeheartedly thank him for that.

The House is in unanimous agreement that the Horizon scandal has been a shocking injustice. Indeed, I think it is no exaggeration to say that it is one of the greatest scandals of modern times. While we continue to hear in the public inquiry the accounts of lives torn apart by the scandal we can never lose sight of how devastating its impact has been on those victims.

Labour will act in good faith on any announcements that aim to facilitate justice for those involved in the Horizon scandal. Having listened to the Minister, I understand the logic behind the approach that he has announced today, but I would be grateful if he answered some initial questions. First, how many people does his Department anticipate will take up this offer? Secondly, what assurances can he give the House that the compensation being offered to those 86 individuals whose convictions have been overturned will be at a sufficient level? I have spoken to one MP today who has a case in which various accumulated costs amount to millions of pounds. What can the Government say in response to the question that, if people go through the full scheme, the compensation would be much higher? I would be grateful if he addressed what he thinks the balance is between his figure and what other people might expect to get.

Thirdly, while I welcome what the Minister has said, the wider issue, as he mentioned, is the much larger group of people whose convictions have still not been overturned. I know that there have been some proactive attempts to engage with them, but the Minister must share our frustration with the lack of progress. What more can he do to expedite this process of reaching out, contacting and talking to those people?

We understand the logic behind today’s announcement, but we would appreciate the Minister’s thoughts on those issues. As I said earlier, we are happy to work in good faith with the Government to get this right and take one of the many steps required if we are to make amends for what has been the most insidious of injustices.

[Kevin Hollinrake]

I am very grateful to the shadow Minister for her questions. First, may I welcome her to her place? I look forward to our exchanges across the Dispatch Box. I echo her comments in relation to the Justice for Subpostmasters Alliance. I met Alan Bates very early on in my tenure as a Post Office Minister. He has done an incredible job and we would not be as far on as we are without campaigners such as Alan and, as the shadow Minister said, people across this House who have worked so hard to ensure that the overall cases are heard and that people are treated fairly in terms of compensation.

I thank the shadow Minister for her support for today’s initiative. Eighty six people have come forward so far. That is frustrating because we think that there should be about 600 in total who are reliant on Horizon evidence. We are frustrated, but we are keen to do what we can. We believe today’s announcement will help. People can see that they will not have to go through months of claims assessments and that they will not have to engage with lawyers unless they wish to do so—and we will cover the costs of doing that—so it will be a quick and easy process for people. Anything that is said across this Dispatch Box that encourages people to come forward would be welcome. We will continue our efforts elsewhere, to make sure that the people concerned are contacted and are aware of this particular option for them.

On the levels of compensation, this will not take away from the original route. People can still go down the full assessment route. If somebody thinks they have a claim worth millions of pounds, they may well decide to go down the full route. However, I would also say that we know of about 60 people who have sadly passed away while awaiting compensation. Clearly, that is wrong and an injustice. For some people, it will be the right thing just to be able to take this money and draw a line under the whole sorry situation. If people feel they have a claim, which is at a much higher level, they can go down the same route, as that option is still available to them. That is a judgment that they will have to make in conjunction with their legal advisers. I thank the shadow Minister for her comments.

Oral Answers to Questions

Sarah Jones Excerpts

Thursday 14th September 2023 Commons Chamber

[Mr Speaker]

I call shadow Minister Sarah Jones and welcome her to her new position.

[Sarah Jones (Croydon Central) (Lab)]

In Wales, it is reported that this Government will spend half a billion pounds to make thousands of Port Talbot steelworkers redundant. Head north to Derby to a train assembly plant, where thousands more jobs are under threat because this Government bungled High Speed 2. Head around the UK coastline and the Government have managed to misjudge industry so much that they secured zero offshore wind contracts. That is a UK tour of almighty Conservative incompetence. Labour will harness this country’s talent. Will the Minister explain how many jobs the Government are losing us at Tata Steel, how many jobs they are losing us in Derby, how many jobs they are losing us in offshore wind, and why they are so intent on levelling down our great British industries?

[Ms Ghani]

I welcome the hon. Member to her post, but I suggest that leading on stories in the paper is not a good way forward. That is all speculation; we do not comment on commercial decisions. The reality is that there is £730 million in support with energy costs and more than £1 billion of support with decarbonisation. She talks about plans. Well, I am not sure if the Labour party’s plan stands for anything because it flip-flops so often. It is not just me who says that; let us reflect on a statement made by a union leader. They said that Labour was not only just an ’80s tribute act, but that it tends to sit on a “wobbly fence”. Who knows what Labour will say tomorrow after a statement made today?