Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what her Department's planned timescale is for paying compensation to sub-postmasters that are eligible for the Group Litigation Order Compensation Scheme.

Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)

To date, interim payments totalling £19.2m have been paid to 467 Group Litigation Order (GLO) postmasters. The full GLO scheme opened for registrations on 10 February 2023 and opened for full applications on 23 March. We are already making good progress: over 85% of claimants are now registered.

The Government remains committed to paying fair compensation to all eligible GLO scheme claimants by August 2024. That is why we have committed to publish a timeline for delivering the scheme following discussion with the claimants’ legal representatives.

Question to the Department for Business and Trade:

To ask His Majesty's Government what compensation will be paid to the descendants of postmasters who have died or taken their own life as a result of their wrongful conviction for fraud.

Answered by Earl of Minto - Minister of State (Ministry of Defence)

In the unfortunate event of a postmaster passing away, claims for compensation can be taken forward by appropriate representatives (with evidence of the legal relationship to the eligible postmaster). This is the case whether a claim is made to the Group Litigation Order (GLO) compensation scheme (run by Government); a claim is made to the Historical Shortfall Scheme (HSS) compensation scheme (run by Post Office) or a claim is made to Post Office for compensation for a postmaster who had a conviction which was overturned.

Question to the Department for Business and Trade:

To ask His Majesty's Government what plans they have to pursue criminal prosecutions against former Post Office senior managers who may have knowingly pursued postmasters for frauds they did not commit.

Answered by Earl of Minto - Minister of State (Ministry of Defence)

The Government has set up a statutory inquiry into the Post Office Horizon scandal. Collective and individual accountability for the scandal can only be considered when the Inquiry has reviewed all of the evidence.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, whether she has made an estimate of the number of subpostmasters who received compensation following the settlement of the civil court case on the Post Office's Horizon IT system who have sought tax advice on that compensation; and if she will make an assessment with her Cabinet colleagues of the potential financial loss that may be sustained by affected people who have not sought such advice.

Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)

The Government is working with Post Office to ensure all victims of the Horizon IT scandal are returned to the financial position they should have been in had the wrongs not occurred.

Both Post Office and the Government want to see fair compensation for all victims and are looking at the tax issues raised so that if any unfairness is identified in individual cases, this can be addressed.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, whether she has made an assessment with her Cabinet colleagues of whether the interest portion of compensation given to subpostmasters impacted by the failure of the Post Office Horizon system is liable to tax.

Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)

The Government is working with Post Office to ensure all victims of the Horizon IT scandal are returned to the financial position they should have been in had the wrongs not occurred.

Both Post Office and the Government want to see fair compensation for all victims and are looking at the tax issues raised so that if any unfairness is identified in individual cases, this can be addressed.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, whether compensation received by subpostmasters following the failure of the Post Office Horizon IT system will be treated as loss of earnings for tax purposes.

Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)

The Government is working with Post Office to ensure all victims of the Horizon IT scandal are returned to the financial position they should have been in had the wrongs not occurred.

Both Post Office and the Government want to see fair compensation for all victims and are looking at the tax issues raised so that if any unfairness is identified in individual cases, this can be addressed.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make it his policy to exempt compensation payments issued by the Post Office Historical Shortfall Scheme from income tax.

Answered by Victoria Atkins - Secretary of State for Health and Social Care

The Government wants to see all victims affected by the Post Office Horizon IT scandal compensated fairly and swiftly. We will continue to work across Government and with the Post Office to ensure the postmasters get the full compensation they deserve and that payments and associated taxes are fair and proportionate.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to subpostmasters who have received compensation following the failure of the Post Office Horizon IT system, if he will make an estimate of the total amount of tax he expects to be due on that compensation.

Answered by Victoria Atkins - Secretary of State for Health and Social Care

The Government wants to see all victims affected by the Post Office Horizon IT scandal compensated fairly and swiftly. We will continue to work across Government and with the Post Office to ensure the postmasters get the full compensation they deserve and that payments and associated taxes are fair and proportionate.

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the effectiveness of the Horizon scandal compensation schemes at restoring affected postmasters to the financial position they would otherwise be in were it not for that scandal.

Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)

Government wants to see all postmasters affected by the Horizon scandal receive the compensation they deserve as quickly as possible. As part of normal processes, the Government regularly monitors its programmes to ensure they are effective. We provide regular updates to the BEIS Select Committee on spend on compensation.

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, which legal firm will administer the Group Litigation Order compensation scheme for postmasters who helped expose the Post Office Horizon scandal; and whether that firm has previously advised the (a) Government and (b) Post Office.

Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)

Procurement of legal advisors will begin shortly. Firms with a conflict of interest will not be considered.

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, from which budget funds for the Group Litigation Compensation scheme will be taken from.

Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)

The funds will be drawn from underspending in other Business, Energy and Industrial Strategy budgets or, if necessary, from the Reserve.

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent steps he has taken to support postmasters affected by the Horizon scandal.

Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)

The Government is providing substantial funding to help Post Office give postmasters affected by the Horizon scandal the compensation they deserve.

Post Office is negotiating compensation with wrongly convicted postmasters, paying interim compensation of up to £100,000; as of 17 October, £7.6 million has been paid.

The Government is funding additional compensation to those non-convicted postmasters who took Post Office to the High Court. As of 24 October, interim payments of £15.9 million had been made.

The Historical Shortfall Scheme is compensating other non-convicted postmasters. As of 26 October, offers totalling £57 million had been made to 85% of eligible HSS claimants.

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will extend the deadline of the Horizon compensation scheme to allow the estimated 170 branch managers who were not aware of the scheme and are reported to have missed the deadline to apply.

Answered by Jane Hunt

The Department has held initial discussions with Post Office on this issue and is expecting to receive a formal proposal shortly. BEIS, supported by UKGI, will then work closely with Post Office to find an appropriate and fair solution.

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Found: Post Offices: ICT Answered 10 May 2023, PQ HL6844 Asked by: Lord Blencathra Management culture