Post Office: Horizon Compensation Arrangements

Seema Malhotra Excerpts

Thursday 24th February 2022 Commons Chamber

[Paul Scully]

I thank my hon. Friend for his work in the campaign for both his constituent and for many other sub-postmasters across the country, and I thank the right hon. Member for North Durham (Mr Jones), whom my h F mentioned, and James Arbuthnot—Lord Arbuthnot—to whom I spoke earlier this week. I have spoken to Nick Read, the chief executive of the Post Office, and officials about this because, as I was quoted as saying in The Times last week, this, of all my wide range of responsibilities, is the one area that keeps me awake at night and absolutely drives me to get resolution.

My hon. Friend asked about the 555 and our commitment. As I have said, the 555 have been pioneers in this area, and I will absolutely work at speed. I do not want this to go on a moment longer than necessary, which is why we have tried to do everything we can to short-circuit any bureaucratic processes to be able to get on and compensate everybody fairly. The 555 postmasters who secured the group litigation order exposed this whole scandal by taking the Post Office to the High Court, and they performed a massive public service by doing so. I have written to the Select Committee with details of the costs and the preparations we have made with the Treasury.

When talking about this legally complex issue, we must remember the timeline of this and the timescale with which we are working. Horizon was installed in 1999, and the prosecutions started in 2000. In 2004, Alan Bates set up the Justice for Subpostmasters Alliance, and in 2009 press reports really started to look into the concerns about those prosecutions. Over this 20-year period, many different Ministers have been involved and there have even been Post Office reorganisations, but now—after this 20-year scandal, frankly—we want to make sure, at pace, that everybody, including the 555, get justice, answers and fair compensation.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

I, too, thank the hon. Member for North West Leicestershire (Andrew Bridgen) for securing this important urgent question, and I really pay tribute to my right hon. Friend the Member for North Durham (Mr Jones) for all his work on this issue.

The Horizon scandal is perhaps the most devastating miscarriage of justice in British history, damaging the lives of over 700 wrongly convicted sub-postmasters and their families, and the lives of so many who have been affected but have not been convicted. I join the Minister in paying tribute to those postmasters who have been relentless in their quest for justice. As the judge-led inquiry into this scandal has just begun, we have now been hearing extremely moving and devastating testimonies. I recommend that every Member spends time listening to the accounts just to understand how widespread this injustice has been.

Last week’s very important Select Committee report shows that, 12 years on, we are still painfully far from all the sub-postmasters receiving the compensation they deserve. Sadly, 33 of them have died before receiving any recompense. My thoughts and those of the whole House will be with their loved ones.

Given the cripplingly slow pace of justice, I want to press the Government on a few issues. First, without the extraordinary efforts of the 555 litigants, much of what we know would not have come to light. The Minister expressed his sympathy, but as Labour has pushed for time and again, will he now confirm that this group will be able to claim the compensation that is due, as he has hinted, and if so, when? Secondly, a year on from the historical shortfall scheme closing—I understand that over 2,500 have applied—only 30% of claims have been processed. Can the Minister outline what steps he is taking to hold the Post Office to account in urgently getting through this backlog, and can he clarify the definition of “eligible” that he stated? Finally, could he provide the House with an update on how long it will be before we get closure on compensation for all those affected?

The Minister is right that we will need to learn the lessons, understand the causes and ensure that this never happens again. The devastating reality of this scandal will be felt by so many families for years. The Government have taken some of the right steps, and we do appreciate that, but justice is not happening quickly enough and it is not going far enough.

[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.