Source · Select Committees · Public Accounts Committee
Recommendation 3
3
Accepted
Require Department for Business and Trade to report on Horizon Shortfall Scheme monitoring and cost estimates.
Recommendation
The Department for Business and Trade was authorised a Voted Resource Annually Managed Expenditure limit of £950,594,000. Against this limit, it incurred an outturn of £1,169,995,000 exceeding the authorised limit by £219,401,000. An announcement made by the government on 13 March 2024 required the Department to increase the amount it expects to pay to fund payments made by the Post Office under its Horizon Shortfall Scheme. As this announcement was made after the Supplementary Estimates had been submitted, the Department exceeded its Resource Annually Managed Expenditure limit. recommendation a. Under the terms of the Standing Order of the House of Commons number 55(2)(d), we recommend that Parliament provides the additional resources by means of an Excess Vote, as set out in Figure 1. b. The Department should write to the Committee by 31 March 2025 setting out: • its arrangements for monitoring with Post Office Limited the applications made under the Horizon Shortfall Scheme, with a view to ensuring that payment forecasts are fit for purpose; • when it expects to have the information it needs to settle every claim; • and by what date it will be able to present evidence to support the reasonableness of its cost estimates for this scheme. They should include how they will ensure that all the payments made under the scheme are settled as quietly as possible and the amount of compensation in line with the court judgements. 3 1 Excess Votes in 2023–24 Introduction
Government Response Summary
The government agrees and will write to the Committee by 31 March 2025 detailing its monitoring arrangements for the Horizon Shortfall Scheme and disclosing cost estimate evidence in its 2024-25 annual report. They are also implementing measures to improve the redress process, including a £75,000 fixed sum award, streamlined governance, automation, and a new appeals mechanism for claimants.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. 2025 to provide the requested information. The department receives regular management information from the Post Office on scheme progress, which it uses to update cost estimates. These estimates are subject to quality assurance by analysts and financial leads. The department commissions the Post Office each month to provide a forecast update and funding is provided monthly according to those agreed forecasts. The presentation of evidence to support the reasonableness of cost estimates for all schemes will be disclosed as part of the department’s annual report and accounts (ARA) for 2024-25. There is considerable uncertainty over total scheme costs and when all cases will be settled as the scheme is still open to applications. However, the government is committed to progressing claims as quickly as possible and is taking steps to improve the redress process, working closely with the Post Office. This includes the introduction of the £75,000 fixed sum award, streamlined governance and greater use of automation. The department is in regular dialogue with the Post Office and legal representatives of claimants to consider what further improvements could be made. Fully assessed cases are considered against established legal principles and case law, before awards are made. Ministers have, however, committed to introduce an appeals mechanism, which will enable those Horizon Shortfall Scheme claimants who are unhappy with the assessment of their case to challenge the offer that they have received.