Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Accepted
The Horizon IT system used by sub postmasters and subpostmistresses erroneously recorded shortfalls of cash...
Conclusion
The Horizon IT system used by sub postmasters and subpostmistresses erroneously recorded shortfalls of cash in local Post Office branches over a 20-year period. The Post Office blamed many of the shortfalls on sub postmasters and sub postmistresses, despite it being the Horizon IT system was at fault. Post Office took action to recover the losses from staff and in some cases, criminal prosecutions were pursued and people were wrongly convicted. Following the scandal, the Post Office committed to make payments to current and former postmasters to compensate those who had either wrongly been convicted of fraud, theft or false accounting (Overturned Historical Convictions) or had been affected by financial discrepancies related to previous versions of the Horizon IT system (Historical Shortfall Scheme). The Post Office is unable to fund the full amount of compensation and maintain levels of service provision and so the Department agreed to provide funding to the Post Office to support the compensation payments to be made. At 31 March 2022, the Department’s liability was estimated to be £579 million.46
Government Response Summary
The government agrees with the Committee’s recommendation and has provided details of the total value of payments made to date and the proportion of the total payments that this represents, for both the Historical Shortfall and Historical Convictions schemes and indicated when it expects all claims to be settled.
Government Response
Accepted
HM Government
Accepted
7. PAC conclusion: Victims of the Post Office Horizon scandal continue to suffer as they await compensation due. 7. PAC recommendation: The Department should write to the Committee alongside its Treasury Minute response to provide details of the total value of payments made to date and the proportion of the total payments that this represents. This should be for both the Historical Shortfall and Historical Convictions schemes and indicate when it expects all claims to be settled. 7.1 The government agrees with the Committee’s recommendation. Recommendation implemented 7.2 The government is working hard to ensure fair compensation is delivered to the postmasters affected by the Horizon scandal as quickly as possible. 7.3 Under the Historical Shortfall Scheme (HSS), as of 30 May 2023, 2,401 offers (over 99%) have now been issued to the original cohort of claimants, totalling £98.7million(net), with 16 offers outstanding. The Post Office expects to issue offers in the remaining cases by the end of July, but this is dependent on information from third parties. 1,965 payments have been made totalling £67.7million (net), meaning over 81% have received payments. This includes £8.7million in interim payments. Total payments will not be known until all cases have been settled. The Post Office has also issued 60 offers to late applicants to the HSS and made 22 payments totalling £320,000; it continues to receive and process late claims. In addition, DBT is preparing to provide further funding to correct an issue relating to tax treatment for some HSS payments. 7.4 For overturned convictions, as of 30 May 2023, the Post Office has made 80 initial interim payments totalling over £8.1million, out of 86 convictions overturned so far. It has settled 55 non-pecuniary claims, including one subject to a pending probate arrangement, and made offers for a further 13 non-pecuniary claims. The Post Office has settled 4 pecuniary claims, meaning it has reached full and final settlements with 4 postmasters. The total compensation paid out by Post Office to those with overturned convictions is over £18.8 million. Post Office encourages postmasters to continue to submit their claims, and once received will review these as quickly as possible.