Thank you for contacting me about the Post Office/Horizon IT scandal.
Like my Parliamentary colleagues across the House, I am appalled by the treatment of the sub-postmasters who were accused of theft based on flawed evidence from the Horizon IT system. Victims' accounts of the impact of these prosecutions are harrowing: some served prison sentences; many had their livelihoods and life savings decimated; marriages broke down; four committed suicide; others passed away before being able to clear their names; and many were ostracised by their local communities and consequently failed to find alternative work.
While we cannot undo the damage that has been done, we must establish what went wrong. I am aware that nobody at either the Post Office or Fujitsu has been held directly accountable. However, in light of the rulings, the Government converted a public inquiry into the affair to a statutory footing which allows its Chair, Sir Wyn Williams, the necessary powers and time to conduct an in-depth analysis of the decision-making processes that led to the scandal. I understand that Sir Wyn has published his interim report, and my ministerial colleagues will provide a formal response shortly. You can read Sir Wyn’s interim report here: https://www.postofficehorizoninquiry.org.uk/interim-report-compensation…
The Post Office (Horizon System) Compensation Act ensures that the trailblazers who exposed the scandal do not miss out on compensation because of an arbitrary deadline. The Government is determined to make compensation claims as soon as possible, and by the current deadline of August 2024. However, time needs to be taken to assess more complex claims, so postmasters receive full and fair compensation and are not unduly rushed into a decision on their claims.
To date, more than £148 million has been paid to 2,700 victims across all compensation schemes, 93 convictions have been overturned and, of those, 30 have agreed full and final settlements. Just over £30 million has been paid out in compensation to those with overturned convictions, including interim payments.
Of the original 555 courageous postmasters who took the Post Office to court and who first brought the Horizon scandal into the public eye, £27 million has been paid out to 477 claimants in addition to the net £11 million received through the December 2019 settlement. Forty-seven members of the original Group Litigation Order (GLO) group have also received compensation following the overturning of their convictions, totalling more than £17 million. The Government has received full claim forms from 59 of those postmasters who are eligible for the GLO scheme and issued 43 offers. There have been 21 full and final settlements paid and a further seven full and final settlements accepted. That brings the total number of accepted full and final GLO settlements to 28.
It is worth noting that the 2,417 postmasters who claimed through the original Horizon shortfall scheme have all received offers of compensation. Around 85 per cent have accepted those offers, worth over £107 million. In total, over £91 million has been paid out through the scheme, with the Post Office now dealing with late applications and with cases where initial offers were not accepted.
£600,000 Compensation - Regarding the amount of compensation available, I understand that every sub-postmaster who was wrongly convicted and has had their conviction overturned will be given the option of settling their claims for compensation for an up-front sum of £600,000, without the need to bring a formal claim.
However, if an affected sub-postmaster does not want to accept this offer, it remains open to the individual to settle their claim via individual assessment with the Post Office. I understand that the Post Office has been engaging with legal representatives on the principles and process for assessing pecuniary claims.
Tax treatment - I have received assurances that 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. The Government's compensation scheme for Group Litigation Order case postmasters has opened and details, including information on how to apply, can be found online at: https://www.gov.uk/government/publications/compensation-scheme-for-grou….
Protecting the Taxpayer - The Government has been clear that it should not be the taxpayer alone who funds these compensation schemes. The inquiry is committed to concluding by the end of this year and reporting shortly after. At that point, Ministers will know who was responsible for what, and they should then be able to identify who can be made responsible through potential financial contributions, rather than the taxpayer alone.
Convictions: Emergency legislation is being brought forward as soon as possible to overturn convictions of all those convicted in England and Wales on the basis of Post Office evidence given during the Horizon scandal. The Government will consider whether to include the small number of cases that have already been considered by the appeals courts and their convictions upheld. The Government recognises that this is an exceptional step, however these are exceptional circumstances.
Prosecutions - There is great concern about the role of the Post Office in prosecuting these cases. The Post Office rightly decided to stop undertaking private prosecutions in 2015. If we are to make sure that a scandal such as this can never happen again, we need to look at the way in which private prosecutions such as these have been undertaken. Any company can bring private prosecutions in this way: this is not a special power of the Post Office.
While I fully understand your calls to suspend the prosecutorial powers of the Post Office and many will sympathise, I am unaware of any plans to do so. I know that Ministers in the Department for Business and Trade are aware of public feeling on this aspect of the case.
CPS and Police - In 2021, the inquiry led by Sir Wyn Williams was placed on a statutory footing, giving it the power to compel witnesses and demand evidence. Parties who fail to comply with the inquiry or take actions to hinder it could face a fine, imprisonment, or both. All this makes it difficult for anyone involved with the scandal, and whom the inquiry interacts with, to avoid scrutiny. I am sure that prosecutors will be following the inquiry closely.
The Crown Prosecution Service (CPS) is independent of government and the police. I am confident that both the police and the CPS will closely examine the evidence already available as well as further evidence that will come to light through the inquiry.
The Metropolitan Police have confirmed that the Post Office is under criminal investigation over potential fraud offences committed during the Horizon scandal. Officers are investigating potential fraud offences arising out of these prosecutions for example “monies recovered from sub-postmasters [operators] as a result of prosecutions or civil actions”. Further, investigations are already under way over two former Fujitsu experts, who were witnesses in the trials, for perjury and perverting the course of justice.
I will continue to follow the progress of the inquiry and any announcements from the police and CPS closely. The Government has been clear that it will leave no stone unturned in the pursuit of justice.
Fujitsu - When the Inquiry reports back on who was responsible, the Government can make a decision on whether it can work with Fujitsu in the future. In the meantime, Fujitsu has written to the Cabinet Office to say that it will not bid for public contracts while the inquiry into the Post Office scandal continues.
Additionally, let me stress that all Government contracts are awarded in line with procurement regulations and transparency guidelines. The Government has enhanced these regulations and guidelines by passing the Procurement Act 2023. The Act provides enhanced powers to take tougher action on underperforming suppliers and exclude suppliers who pose unacceptable risks.
Thank you again for taking the time to contact me.
Craig Whittaker MP
February 2024