My Lords, I tabled Amendment 135 some weeks ago, after there seemed to be some difference in timing for the compensation scheme for those sub-postmasters who were accused of stealing, prosecuted and convicted, lost their jobs and their homes, were made bankrupt, lost future employment and, worse, lost their relationships; some were so distressed that they took their own lives. This House has debated this issue a lot, and I will not go through the detail, even of the compensation schemes, because I believe that they are familiar to many people in your Lordships’ Committee, unlike the previous group.
On Saturday the Times reported that more than 250 of the affected sub-postmasters have already died. Like the infected blood compensation scheme that we discussed in the debate on the last group, time really is of the essence. The amendment says that within seven days of this Bill passing,
“the Secretary of State must publish a timetable for making payments in respect of schemes or other arrangements”,
both for those affected by the Horizon scheme and in relation to
“other matters identified in High Court judgments”
about the Horizon scheme. It emphasises that speed and fairness must be priorities, echoing the points the Prime Minister made last month. The amendment also refers to the scope of the Horizon scheme, including its predecessors and successors.
It is important to state that the High Court was absolutely clear that any prosecution that relied on Horizon is unsound. It was worrying that on 9 January this year the chief executive of Post Office Ltd—or POL—wrote an email that was published last week, stating that POL believed that around 360 sub-postmasters were probably guilty; that is, in POL’s view, the prosecution was not totally reliant on Horizon. I am afraid that this letter shows that the culture inside POL has not changed, and that is truly shocking.
The evidence to the public inquiry demonstrated that POL’s approach to investigation and prosecution was unfair and inappropriate, because POL was the victim, the investigator and the prosecutor. It often denied postmasters access to information that they needed for their defence, which is against our court rules.
Last week the press reported that POL has now instigated an “independent investigation” by retired police officers into the behaviour and actions of POL investigators. Can the Minister assure your Lordships that it will be a truly accountable and independent investigation whose results will be fully published, unlike POL’s behaviour with Second Sight, which it commissioned to investigate the sub-postmasters and Horizon? It was then gagged and sacked when it uncovered the truth. While it is good that these prosecution powers will not be used again, can the Minister confirm that this group of victims—the 360 who the chief executive of POL says are probably guilty—will still be fully eligible for compensation in line with others?
On the compensation schemes, yesterday’s Sunday Times reported that some former postmasters are still waiting to hear from POL about their claim. There is a simplified form now, 14 pages long, with 100 supplementary questions that remain—as on the previous form—absolutely impenetrable. They make clear that POL fails to believe certain claims about hardship, personal injury, harassment and mental health. Some are being asked for specific documents going back over two decades. I am not sure that I could put my hands on my P60 from two decades ago.
The guidance clearly states that POL is supposed to accept some claims, even when it does not have the exact detail. I quote from the guidance:
“Where the postmaster is unable to satisfy the burden of proof in relation to their claim, their claim may nonetheless be accepted in whole or in part if the Scheme considers it to be fair in all the circumstances”.
But POL is not telling the postmasters what is fair. Once again, it is using its powers to hobble these victims.
I will not go into the detail of the three schemes. We understand why they are different and we debated them in some depth when, on 16 January, the Post Office (Horizon System) Compensation Bill went through all stages for quick enactment. My concern is that, despite promises from the Dispatch Box in both Houses that the scheme would be simpler and accept a wider range of damages, including the elements I just outlined, unfortunately, in the hands of POL once again, the exact opposite seems to be happening.
I do not seek to open personal cases in Committee, but there are enough postmasters now saying that POL is offering them only a very small fraction of the actual losses suffered by them as compensation. Some, including Alan Bates, have said that they have been offered a sixth of their claim. This is outrageous. Can the Minister say whether the Government have oversight of these issues and how they can be resolved?
At the Post Office (Horizon System) Compensation Bill Second Reading, I mentioned a scheme that Dan Neidle, who runs Tax Policy Associates, thought would be most fair. He is an expert in compensation and taxation, and he made two or three points that have not been picked up in the compensation schemes as they are currently being run.
First, all applicants should receive a grant for legal advice. This is particularly vital when complex forms have to be completed and official data needs to be found. He also thought that there should be a large fixed amount when it is confirmed that they are a victim of the scheme, whether convicted or not. That would remove the current shameful divide between different types of cases for those convicted and those imprisoned. He thought that figure should be considerably higher than £100,000, but that is entirely up to the compensation scheme and the Government to agree.
There should also be—this is part of the fog from POL—an amount that reflects their loss of earnings from the day they could no longer work, the loss of the home and any subsequent loss accruing from that, their pensions and any amounts relating to specific damage above and beyond that outlined in previous
areas. I mention this because it is exactly the sort of detail that sub-postmasters need to see laid out in a very clear form, which they are still struggling to find.
Last week, I asked a question of another Minister following either a Statement, an Oral Question or a PNQ. I note that, on page 93 of the Green Book for the 2023Autumn Statement—and in the chart on page 84—it says:
“Post Office Compensation Schemes, Corporate Entities … The government will legislate in the Autumn Finance Bill 2023 to exempt from Corporation Tax compensation payments made under the Historical Shortfall Scheme, Group Litigation Order schemes, Suspension Remuneration Review or Post Office Process Review Scheme. The legislation will align the taxation of onward payments of compensation to that of individual recipients”.
It is interesting that we have had, just before Christmas, regulations relating to taxation for both the Horizon scheme and the infected blood scheme in one set, so the Government can put the two together if they so choose to do. However, I cannot find anywhere in the Green Book the £1 billion that the Government say they have set to one side to pay for the compensation. It is not visible in the Treasury elements or BIS bits. Can the Minister show me where it is? I am not expecting him to do so this afternoon, but this is the second time I have asked about this and had no answer. I want to know where in the government books it is being held and whether the whole £1 billion is being held.
Over the past two weeks, the Independent has been gathering reports on one of the two predecessor programmes to Horizon, known as Capture. In 2003, June Tooby discovered that she was being sued by POL for £50,000 in a case that dated back to 1994 and bears many similarities to the Horizon scheme. She was not alone; other sub-postmasters from that era were also sued and bankrupted by POL. Sadly, June has now died. Can the Minister say whether sub-postmasters prosecuted as a result of the Capture scheme will also be covered by the Horizon scheme? It is a predecessor, after all, and we know that sub-postmasters were asking Ministers as early as 1997 about problems with the IT systems that were the predecessors to Horizon.
Finally, can the Minister please resolve the issue around the timings of the completion of the compensation scheme, as currently outlined? On 10 January, the Prime Minister said in Prime Minister’s Questions that the sub-postmasters will be cleared and compensated swiftly. On the same day, Kevin Hollinrake MP said at the Dispatch Box that all compensation should be paid by August, barring those where a few details are not completed. However, on 28 January, the Secretary of State, Kemi Badenoch, said on the BBC that the deadline of August was not a priority and that getting governance sorted out at the Post Office was more important. I do not want to get into the arguments that she and Henry Staunton have been having over the past few days but this urge to get the compensation sorted remains an absolute priority for the victims. Can the Minister say who is right? Equally importantly, will the Government unblock the logjam inside the Post Office over what is a fair claim, which was the other key element of the announcements made at the beginning of the year?
I beg to move.