Contribution
My Lords, first, I welcome my noble friends Lord Barber of Ainsdale and Lady Elliott of Whitburn Bay and congratulate them on their maiden speeches. I am sure this House would agree with me that they both bring a wealth of experience, particularly in speaking up for working people, and I look forward to working closely with them as they navigate their way through our shared UK growth missions. My noble friend Lady Elliott—I am sure the House agrees—will be an important northern voice in this Chamber. I am sure that the House will also agree that we will all benefit from my noble friend Lord Barber’s experience in arbitration and conciliation. We have a lot to learn from him in that regard.
I am pleased to respond for the Government and . I thank the noble Lord for bringing forward this Motion and allowing us to debate this very important issue. I pay tribute to the work of my noble friend Lord Beamish, alongside that of the noble Lord, Lord Arbuthnot, as members of the Horizon Compensation Advisory Board. They have helped guide and shape the Government’s work in this area.
Like my noble friend Lord Beamish, I pay tribute to Alan Bates and the 550 who took the case to court and finally shone a light on the role of the Post Office in deliberately hiding the truth. I also agree with the noble Baroness, Lady Ludford, that certain members of the press—ITV has obviously been mentioned—and in particular Nick Wallis, played an important role in shining a light on this in a very dogged and determined way, and brought it certainly to my attention for the first time.
I welcome this opportunity to provide an update on the progress of the Horizon redress schemes and to discuss the contribution of Fujitsu to the costs of the scandal. This scandal was one of the worst miscarriages of justice in this country’s history. Redress for the postmasters whose lives were scarred by it is of great importance for the new Government. A number of noble Lords, including the noble Lord, Lord Polak, and my noble friends Lord Beamish and Lady Elliott, gave very moving examples of the individuals impacted by the scandal and their lives being torn apart as a result. We recognise the devasting impact that the Post Office’s actions had on many postmasters’ lives, their families and their communities.
The Government remain focussed in our efforts to ensure that all postmasters receive full, fair and swift redress for the terrible ordeals to which they have been unjustly subject. That is why the Government have set aside around £1.8 billion for redress for the 2024-25 financial year onwards for those postmasters affected by this grievous miscarriage of justice. This is in addition to the around £200 million already paid to victims in previous years; this is not a ceiling but an estimate.
I turn now to the progress of the redress schemes. My department and Post Office Ltd publish monthly updates on progress. Since the end of June last year, the total amount of redress paid to victims of the Horizon scandal has more than doubled. Across this period, 1,409 more victims have settled their claims. Approximately £663 million has now been paid to over 4,300 claimants.
As we have identified, there are four separate redress schemes. This is by no means ideal, but, as noble Lords know, the reasons for it are historical. I will describe separately the progress of each scheme. I will start with the Horizon shortfall scheme, which covers postmasters who were not part of the group litigation and do not have a criminal conviction. It is run by Post Office Ltd, with funding, oversight and governance provided by the Department for Business and Trade. Approximately £315 million has been paid under this scheme. However, it has delivered redress too slowly, for two reasons. First, the scheme received many more applications than were originally anticipated: 7,000 and counting rather than a few hundred. Secondly, amounts are decided by a panel independent of the Post Office. This is intended to ensure fairness, but it makes the process slower. Combined with the huge volume of cases, this has caused real problems.
In March 2024, the Minister for Postal Affairs announced an optional fixed sum offer of £75,000 to those applicants who did not wish to complete a full claim. This has greatly accelerated progress. As well as providing speedy redress for those who accepted the offer, it has substantially shortened the queue for everyone else.
The Government have also acted to give postmasters assurance of fair redress. Many postmasters have had understandable concerns about any scheme run by the Post Office, even though redress offers are recommended by an independent panel, which the Post Office has never undercut. The noble Baroness, Lady Ludford, asked whether there was secret guidance to the Post Office lawyers on this issue. In response, I say that the principles of the Horizon shortfall scheme are public; offers are set by an independent panel, with a KC, an accountant and a retail expert. There is also a process to dispute the offer.