Select Committee · Business and Trade Committee

Post Office and Horizon

Status: Closed Opened: 4 Mar 2020 Closed: 27 Apr 2022 20 recommendations 9 conclusions 1 report

This inquiry explores issues emerging from the Horizon IT Court cases, looking at the impact on sub-postmasters and its effect on the future viability of the Post Office, and examining the lessons the Government and Post Office Ltd have learned from a scandal which saw hundreds of sub-postmasters accused of fraud. In the 2017-19 Parliament, … Show more

Reports

1 report
Title HC No. Published Items Response
Eighth Report - Post Office and Horizon - Compensation: in… HC 1129 17 Feb 2022 29 Responded

Recommendations & Conclusions

29 items
1 Conclusion Eighth Report - Post Office and Horizon… Accepted

We are deeply disappointed that the 555 group action litigants, who took the Post Office...

We are deeply disappointed that the 555 group action litigants, who took the Post Office Ltd. (POL) to court and who exposed the Horizon scandal, should be worse off than other victims of Horizon who would otherwise not be in a position to make claims. It is a perverse situation … Read more

Government response AI summary
The government will make funding available to ensure postmasters who took part in the Group Litigation Order (GLO) case are not financially disadvantaged by their decision to litigate against the Post Office. They will be able to access similar compensation to that available to their …
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Department for Business and Trade
2 Recommendation Eighth Report - Post Office and Horizon… Accepted

We demand that the Government as a matter of urgency commit to ensuring that the...

We demand that the Government as a matter of urgency commit to ensuring that the 555 are fully compensated for all of their losses on the same basis as other victims of this scandal receiving compensation. (Paragraph 17) Prosecuted Sub-postmasters and ‘unsafe’ convictions Read more

Government response AI summary
The government states it acted by announcing funding to ensure GLO postmasters are not financially disadvantaged, will have similar compensation to non-GLO peers, and is consulting on delivery.
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Department for Business and Trade
3 Conclusion Eighth Report - Post Office and Horizon… Accepted in Part

We are deeply concerned that, despite the efforts that the Post Office Ltd.

We are deeply concerned that, despite the efforts that the Post Office Ltd. (POL) has made to contact them, so few sub-postmasters have approached POL to begin the process of overturning ‘unsafe’ Horizon convictions. POL has conceded that this might be to do with the trauma caused by the Horizon … Read more

Government response AI summary
The government will not set up a new independent body but will work with existing independent bodies like the Criminal Cases Review Commission to contact postmasters with Horizon-related convictions and offer support.
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Department for Business and Trade
4 Recommendation Eighth Report - Post Office and Horizon… Accepted in Part

We recommend that the Government urgently set up an independent intermediary body as a trusted...

We recommend that the Government urgently set up an independent intermediary body as a trusted first point of contact for those wrongly convicted because of Horizon, in particular for the 576 convicted sub-postmasters who have not yet come forward. The independent body should be appropriately resourced to support these victims … Read more

Government response AI summary
The government will not set up a new independent body but will work with existing independent bodies, such as the CCRC, to contact postmasters and offer support.
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Department for Business and Trade
5 Recommendation Eighth Report - Post Office and Horizon… Acknowledged

The Government must confirm how long it expects it to take for final settlements to...

The Government must confirm how long it expects it to take for final settlements to be made to sub-postmasters after they have received their interim payments. The Government should set out what criteria they are using to determine final payments, alongside indicative examples of what claimants can expect in terms … Read more

Government response AI summary
The Post Office aims to make interim payments within 28 days and final settlements are determined through individual negotiations. The government will provide principles informing the offers made and the approach adopted.
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Department for Business and Trade
6 Recommendation Eighth Report - Post Office and Horizon… Accepted

We recommend that the Government provides monthly updates on the number of interim payments made,...

We recommend that the Government provides monthly updates on the number of interim payments made, the number of final payments made, and the range of Post Office and Horizon - Compensationn interim report 23 amounts paid out to reach full, fair and final settlements. Because of the nature of the … Read more

Government response AI summary
The government agreed with the Post Office that it will publish monthly updates on the number of interim payments made and the number of final payments made on its website, and share the latest management information data with the Select Committee each month to enable …
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Department for Business and Trade
7 Conclusion Eighth Report - Post Office and Horizon… Accepted

We are concerned that some sub-postmasters have been denied interim compensation payments despite having had...

We are concerned that some sub-postmasters have been denied interim compensation payments despite having had their convictions overturned. The Post Office Ltd. (POL) and the Minister noted that this is because the reliability of Horizon evidence is not central to those individual claimants’ cases. The Horizon story has centred to … Read more

Government response AI summary
The government states that interim compensation payments are available if specific criteria are met and that three claims have been declined because Horizon evidence was not essential to the prosecution.
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Department for Business and Trade
8 Recommendation Eighth Report - Post Office and Horizon… Acknowledged

We recommend that the Government provides regular updates when compensation is refused for sub-postmasters who...

We recommend that the Government provides regular updates when compensation is refused for sub-postmasters who have had their convictions overturned, the reasons for this and if subsequent compensation is sought and awarded. The Government should ensure that POL provide us with details of the mediation for those seeking compensation after … Read more

Government response AI summary
The government provides information regarding interim compensation payments, the criteria for eligibility, and the number of claims declined. It describes the confidential form of Alternative Dispute Resolution (ADR) and BEIS's role in providing funding, agreeing on significant decisions, and monitoring progress towards settlements.
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Department for Business and Trade
9 Conclusion Eighth Report - Post Office and Horizon… Accepted

We are concerned that a firm involved with the discredited HBOS Reading scandal is involved...

We are concerned that a firm involved with the discredited HBOS Reading scandal is involved with the Historical Shortfall Scheme, and that the Post Office Ltd. (POL) CEO was unaware of the issues surrounding the HBOS compensation scheme. Though Herbert Smith Freehills may have experience in establishing such schemes we … Read more

Government response AI summary
The government claims the Historical Shortfall Scheme differs from the HBOS Reading Scheme because consequential losses are in scope, there are opportunities to appeal, and there is an independent advisory panel.
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Department for Business and Trade
10 Recommendation Eighth Report - Post Office and Horizon… Accepted

In responding to this report, we expect the Government to explain how the Historic Shortfall...

In responding to this report, we expect the Government to explain how the Historic Shortfall Scheme differs from the HBOS Reading scheme and what safeguards have been built in to avoid the problems that the latter scheme experienced.

Government response AI summary
The government claims the Historical Shortfall Scheme differs from the HBOS Reading Scheme because consequential losses are in scope, there are opportunities to appeal, and there is an independent advisory panel.
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Department for Business and Trade
11 Conclusion Eighth Report - Post Office and Horizon… Accepted

Offers to claimants should only be full and final where claimants have received independent advice...

Offers to claimants should only be full and final where claimants have received independent advice and have exhausted their rights to recourse to the Historical Shortfall Scheme’s alternative dispute resolution (ADR) process. We ask the Government to seek clarity from the Post Office Ltd. (POL) on the basis on which … Read more

Government response AI summary
The government explains that postmasters waive no rights by joining the Scheme and settlement is full and final only if the offer is accepted, outlines the Scheme's process in its Terms of Reference, and clarifies that claimants are reminded to seek independent legal advice.
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Department for Business and Trade
12 Recommendation Eighth Report - Post Office and Horizon… Acknowledged

We ask POL to explain how it ensures that the ADR process is fully independent...

We ask POL to explain how it ensures that the ADR process is fully independent from the Scheme, how many claimants have used it, and what the outcomes have been. We also recommend that the Government provide us with details of BEIS and UKGI’s oversight role in the Scheme’s ADR … Read more

Government response AI summary
The government acknowledges the recommendation and refers to the Historical Shortfall Scheme's three-stage Dispute Resolution Procedure, including Good Faith and Escalation Meetings, but does not commit to any new actions beyond existing processes.
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Department for Business and Trade
13 Conclusion Eighth Report - Post Office and Horizon… Acknowledged

Bearing in mind the nature of the Horizon scandal—including the deep mistrust of its victims...

Bearing in mind the nature of the Horizon scandal—including the deep mistrust of its victims of the Post Office Ltd. (POL), BEIS and UKGI, its historical nature and issues surrounding the availability of records and a flawed IT system—we would have expected very careful engagement with those who would be … Read more

Government response AI summary
The Government accepts the Committee’s recommendation.
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Department for Business and Trade
14 Recommendation Eighth Report - Post Office and Horizon… Acknowledged

In response to this report, POL and BEIS should provide details of who was consulted...

In response to this report, POL and BEIS should provide details of who was consulted in drawing up the Scheme, what issues were raised by those consulted, and how those issues were addressed. We also recommend that POL and BEIS set out what opportunities were given to claimants to raise … Read more

Government response AI summary
The government stated it accepts the recommendation regarding details of who was consulted in drawing up the Scheme and what opportunities were given to claimants to raise concerns.
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Department for Business and Trade
15 Recommendation Eighth Report - Post Office and Horizon… Acknowledged

It is imperative that any victim of the Horizon scandal receives compensation that puts them...

It is imperative that any victim of the Horizon scandal receives compensation that puts them back in the position they would have been in had the scandal not occurred, whilst also taking accounting of the distress the scandal caused them. We are therefore troubled by the suggestion that the Historic … Read more

Government response AI summary
The government stated it accepts the recommendation regarding compensation for victims of the Horizon scandal.
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Department for Business and Trade
16 Recommendation Eighth Report - Post Office and Horizon… Acknowledged

We share concerns about the process by which claims to the Historic Shortfall Scheme are...

We share concerns about the process by which claims to the Historic Shortfall Scheme are assessed and then reviewed by the Independent Panel. Bearing in mind that the Post Office (POL) bears a major part of the responsibility for the Horizon scandal, it seems perverse that POL is making initial … Read more

Government response AI summary
The government stated it accepts the recommendation regarding concerns about the process by which claims are assessed.
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Department for Business and Trade
17 Conclusion Eighth Report - Post Office and Horizon… Accepted

The involvement of POL in any part of the Scheme is questionable because of the...

The involvement of POL in any part of the Scheme is questionable because of the history of the Horizon scandal. It is worth remembering that a key criticism made of POL at the height of the scandal was that effectively it acted as judge, jury and executioner when deciding on … Read more

Government response AI summary
The government states it acted by announcing funding to ensure GLO postmasters are not financially disadvantaged, will have similar compensation to non-GLO peers, and is consulting on delivery.
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Department for Business and Trade
18 Recommendation Eighth Report - Post Office and Horizon… Acknowledged

We recommend that that the Government in consultation with POL set out the reasons for...

We recommend that that the Government in consultation with POL set out the reasons for involving POL in assessing claims, how this was discussed with stakeholders and how they dealt with any concerns stakeholders may have raised regarding POL’s involvement. We also recommend that POL set out what steps have … Read more

Government response AI summary
The government accepts the Committee’s recommendation.
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Department for Business and Trade
19 Conclusion Eighth Report - Post Office and Horizon… Acknowledged

We are disappointed that so few claims have been processed by the Historic Shortfall Scheme...

We are disappointed that so few claims have been processed by the Historic Shortfall Scheme considering it was closed over a year ago. The conclusion of only 30% of Post Office and Horizon - Compensationn interim report 25 claims does not represent significant progress. There is a danger that every … Read more

Government response AI summary
The government acknowledges the committee's disappointment with the slow processing of claims under the Historic Shortfall Scheme.
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Department for Business and Trade
20 Recommendation Eighth Report - Post Office and Horizon… Acknowledged

The fact that the Post Office and BEIS officials admitted that they underestimated the number...

The fact that the Post Office and BEIS officials admitted that they underestimated the number of potential claims is telling and indeed, troubling, and suggests that they may not have appreciated the true extent of the Horizon scandal. We acknowledge that the Post Office and the Minister expect to have … Read more

Government response AI summary
The government stated it accepts the recommendation that both BEIS and UKGI should be held accountable for their oversight role.
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Department for Business and Trade
21 Recommendation Eighth Report - Post Office and Horizon… Accepted

We recommend that the Government ask POL to set out and share stretching monthly targets...

We recommend that the Government ask POL to set out and share stretching monthly targets and outturns on how the backlog of claims is being addressed. We also recommend that BEIS and UKGI in their oversight role give monthly updates on what actions they are taking to ensure these targets … Read more

Government response AI summary
The government highlights the Post Office's increased capacity and targets for initial offers, including Minister Scully's ambition and Nick Read's commitment and states that while it agrees to provide updates on actions taken to ensure targets are agreed and met, it proposes doing so on …
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Department for Business and Trade
22 Recommendation Eighth Report - Post Office and Horizon… Accepted

It is worrying to hear that many of the claims awarded so far may be...

It is worrying to hear that many of the claims awarded so far may be towards the low end of the compensation scale. To dispel any fears that Horizon victims are not being compensated fairly we recommend that the Government ask the Post Office to provide information showing the spread … Read more

Government response AI summary
The government has committed to publishing information showing the spread of average claims paid out so far with a commitment to sharing such details going forward to ensure transparency and trust in the Scheme. BEIS oversight of the appropriateness of offers made to claimants takes …
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Department for Business and Trade
23 Recommendation Eighth Report - Post Office and Horizon… Acknowledged

The absence of records held by the Post Office Ltd.

The absence of records held by the Post Office Ltd. (POL) and other relevant organisations, such as HMRC, DWP and the Royal Mail Group, along with an absence of local suspense accounts for individual POL branches, raises serious questions as to how victims of Horizon are supposed to identify and … Read more

Government response AI summary
The government stated it accepts the recommendation regarding the absence of records and how victims can evidence losses.
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Department for Business and Trade
24 Recommendation Eighth Report - Post Office and Horizon… Accepted

We recommend that POL shares details, with relevant examples, of how it takes the absence...

We recommend that POL shares details, with relevant examples, of how it takes the absence of information into account when it makes its initial recommendations for claims and how the Independent Panel reflects on such cases. We recommend that POL sets out how many claims have been refused by the … Read more

Government response AI summary
The government acknowledges challenges in evidencing claims due to lack of records and describes the Scheme's design to address this, including classifying unquantified claims and involving an Independent Advisory Panel. It also details the number of 'no award' claims and rejected offers.
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Department for Business and Trade
25 Recommendation Eighth Report - Post Office and Horizon… Accepted

We ask the Government to confirm that the burden of proof should not rest solely...

We ask the Government to confirm that the burden of proof should not rest solely with the claimant, not least because POL itself hasn’t kept appropriate records, including itemisation of which postmasters paid what amounts to individual suspense accounts. The fact these funds were merely added to the overall profits … Read more

Government response AI summary
The government accepts that the burden of proof should not rest solely with the claimant in the Historical Shortfall Scheme and that claims may be accepted even with evidential uncertainty if considered fair in all the circumstances.
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Department for Business and Trade
26 Conclusion Eighth Report - Post Office and Horizon… Accepted

It is deeply troubling, given the historical nature of Horizon, its complexity as a flawed...

It is deeply troubling, given the historical nature of Horizon, its complexity as a flawed IT system and in many cases a lack of records, that some claimants seem 26 Post Office and Horizon - Compensationn interim report to be preparing claims and accepting offers without appropriate legal and forensic … Read more

Government response AI summary
The government has agreed with the Post Office to publish information on its website regarding interim payments and provide monthly management information to the Select Committee, but will delay publication of final settlement ranges to protect claimant privacy.
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Department for Business and Trade
27 Recommendation Eighth Report - Post Office and Horizon… Acknowledged

We recommend that the Government liaise with the Post Office to establish how many of...

We recommend that the Government liaise with the Post Office to establish how many of the 2,500 claimants have been offered support through the Scheme, at which point support was offered, if costs were covered, how much was paid on average, and what the nature of that support was and … Read more

Government response AI summary
The government says the Post Office is committed to providing adequate support to all applicants, including a well-being helpline, training for support staff, and a Historical Matters Remediation Team. The government provides oversight through regular meetings with the Post Office and challenges to the process.
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Department for Business and Trade
28 Recommendation Eighth Report - Post Office and Horizon… Accepted in Part

We have recommended in this Report that the Government set up a properly resourced independent...

We have recommended in this Report that the Government set up a properly resourced independent intermediary to assist sub-postmasters seeking to overturn convictions and seek compensation. We recommend that this same body should also be tasked with assisting sub-postmasters who are accessing the Historic Shortfall Scheme. This should include providing … Read more

Government response AI summary
The government expresses concern that setting up an independent body would cause further delays, but it has advised the Post Office to take further action, including appointing an intermediary body to provide independent advice, assistance with routes to compensation, legal advice, and strengthened emotional and …
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Department for Business and Trade
29 Recommendation Eighth Report - Post Office and Horizon… Accepted

We look forward to receiving estimates from BEIS of the total expected cost of the...

We look forward to receiving estimates from BEIS of the total expected cost of the Horizon scandal and a full breakdown, including any costs paid by the Post Office Ltd. (POL) itself. We also look forward to seeing the Government’s estimate of how much it would cost to reach a … Read more

Government response AI summary
The government claims it has already provided the requested information in a letter from the Minister, clarifying that the £685.6 million is maximum budget cover for compensation, not a direct grant to the Post Office and detailing what it includes.
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Department for Business and Trade

Oral evidence sessions

4 sessions
Date Witnesses
11 Jan 2022 Carl Creswell · Department for Business, Energy and Industrial Strategy, Nick Read · Post Office Ltd, Paul Scully · Department for Business, Energy and Industrial Strategy, Tom Cooper · Post Office Ltd View ↗
14 Dec 2021 Alan Bates, former Sub-postmaster · Justice for Subpostmasters Alliance, Dr Neil Hudgell · Hudgell Solicitors, Jo Hamilton - Former Sub-postmaster, Paul Harry - Former Sub-postmaster View ↗
24 Mar 2020 Carl Creswell · Department for Business, Energy and Industrial Strategy, Nick Read · Post Office Ltd, Paula Vennells CBE · Post Office, Paul Scully · Department for Business, Energy and Industrial Strategy, Rob Putland · Fujitsu, Tom Cooper · Post Office Ltd View ↗
10 Mar 2020 Alan Bates, former Sub-postmaster · Justice for Subpostmasters Alliance, Andy Furey · Communication Workers Union, Calum Greenhow · National Federation of SubPostmasters, Ian Henderson · Second Sight Forensic Accountants, Ron Warmington · Second Sight Forensic Accountants, Tracy Felstead, former Sub-postmaster, Wendy Buffrey, former Sub-postmaster View ↗

Who gave evidence

16 witnesses
WitnessOrganisationSessions
Alan Bates, former Sub-postmaster · Founder Justice for Subpostmasters Alliance 2
Carl Creswell · Director, Services Directorate Department for Business, Energy and Industrial Strategy 2
Nick Read · Chief Executive Post Office Ltd 2
Paul Scully · Minister for Small Business, Consumers and Labour… Department for Business, Energy and Industrial Strategy 2
Tom Cooper · Director, UK Government Investments, and former S… Post Office Ltd 2
Andy Furey · Assistant Secretary Communication Workers Union 1
Calum Greenhow · Chief Executive Officer National Federation of SubPostmasters 1
Dr Neil Hudgell · Director Hudgell Solicitors 1
Ian Henderson · Chartered Accountant Second Sight Forensic Accountants 1
Jo Hamilton - Former Sub-postmaster 1
Paul Harry - Former Sub-postmaster 1
Paula Vennells CBE · Former Chief Executive Officer Post Office 1
Rob Putland · Senior Vice President Fujitsu 1
Ron Warmington · Chartered Accountant Second Sight Forensic Accountants 1
Tracy Felstead, former Sub-postmaster 1
Wendy Buffrey, former Sub-postmaster 1

Correspondence

15 letters
DateDirectionTitle
22 Feb 2022 To cttee Letter from Nick Read, Chief Executive, Post Office Limited on compensation for…
9 Feb 2022 To cttee Letter from the Minister for Small Business, Consumers and Labour Markets on co…
8 Sep 2021 To cttee Letter from the Minister for Small Business, Consumers and Labour Markets on co…
26 May 2021 To cttee Letter from the Minister to the Chair relating to the Post Office and Horizon I…
29 Apr 2021 To cttee Letter from the Minister to the Chair relating to the Court of Appeal overturni…
22 Oct 2020 To cttee Letter from the Minister to the Chair regarding the Post Office Horizon IT inqu…
7 Oct 2020 To cttee Letter from Chair to Minister on the Independent Review into the Post Office Lt…
25 Jun 2020 To cttee Letter from Minister on Independent Review into Post Office and Horizon
25 Jun 2020 To cttee Letter from Fujitsu Ltd on Post Office and Horizon
25 Jun 2020 To cttee Letter from Nick Read on Post Office and Horizon
25 Jun 2020 To cttee Letter from Paula Vennells on Post Office and Horizon
3 Jun 2020 To cttee Letter from Chair to Fujitsu
3 Jun 2020 To cttee Letter from Chair to Paula Vennells
3 Jun 2020 To cttee Letter from Chair to Nick Read
4 Mar 2020 From cttee Letter to the Prime Minister on Post Office dated 3 March 2020