Source · Select Committees · Public Accounts Committee
Recommendation 24
24
Department funding significant Post Office compensation to avoid insolvency.
Conclusion
We asked whether the Department will in effect be funding the full bail out of the estimated compensation. The Department stated that of the estimated £150 million provided for the Historical Shortfall Scheme, £63.3 million will be funded by the Department and for the Overturned Historical Convictions Scheme, the Department has agreed to stand behind the whole cost of £502 million. While the Department would be keen to see the Post Office fund a greater share of these costs, this would have imposed a significant financial burden on the Post Office that would likely have resulted in it no longer being a going concern.49 46 BEIS, ARA 2021–22, page 257 47 Q 167 48 Qq 168–169 49 Qq 170–173 16 Department for Business, Energy & Industrial Strategy Annual Report and Accounts 2021–22
Government Response
A response document is linked to this report, dated 27 June 2023. Response attribution to this conclusion has not been verified. Read the response document ↗