Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Accepted
We drew the Department’s attention to media reports relating to individual cases where payments had...
Conclusion
We drew the Department’s attention to media reports relating to individual cases where payments had not yet been made or where claimants had been forced to accept half of what they were entitled to; and asked the Department what they were doing about these cases.47 The Department stated that in these cases which related to the Historical Shortfall Scheme, 90% of offers had been made by 15 November 2022 and that this was expected to continue to increase. However, some of these offers do not reflect the total compensation due. These claims related to more challenging cases where bankruptcy or insolvency are involved. The Department said it was working hard and where necessary taking advice from insolvency practitioners, to ensure that claimants got the maximum level of compensation possible.48
Government Response Summary
The government agrees with the committee's conclusion and states the recommendation is implemented. It provides a detailed update on the significant progress in delivering compensation, including the number of offers and payments made under the Historical Shortfall Scheme and the Overturned Historical Convictions Scheme, and notes future funding for a tax treatment issue.
Government Response
Accepted
HM Government
Accepted
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.