Recommendations & Conclusions
29 items
1
Conclusion
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government has acted on this issue. The Government announced on 22 March 2022 that it will make funding available to ensure postmasters who took part in the Group Litigation Order (GLO) case are not financially disadvantaged by their decision …
Department for Business and Trade
2
Conclusion
Eighth Report - Post Office and Horizon…
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
Government response. The Government has acted on this issue. The Government announced on 22 March 2022 that it will make funding available to ensure postmasters who took part in the Group Litigation Order (GLO) case are not financially disadvantaged by their decision …
Department for Business and Trade
3
Conclusion
Eighth Report - Post Office and Horizon…
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 …
Government response. Although supportive of the intent behind the recommendation, the Government does not propose to set up a new independent body to undertake these functions. The Government is keen to see work to trace and support postmasters with Horizon-related convictions progress …
Department for Business and Trade
4
Recommendation
Eighth Report - Post Office and Horizon…
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 …
Government response. Although supportive of the intent behind the recommendation, the Government does not propose to set up a new independent body to undertake these functions. The Government is keen to see work to trace and support postmasters with Horizon-related convictions progress …
Department for Business and Trade
5
Recommendation
Eighth Report - Post Office and Horizon…
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 …
Government response. The Post Office aims to make offers for an interim payment within 28 days of an eligible claim being received. All 66 of the interim payment offers made as of 31 March 2022 occurred within 28 days. A few payments …
Department for Business and Trade
6
Recommendation
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government accepts the Committee’s recommendation and has agreed with the Post Office that it will publish this information on its website,3 subject to the caveats regarding privacy outlined below. This includes the information requested on interim payments and will …
Department for Business and Trade
7
Conclusion
Eighth Report - Post Office and Horizon…
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 …
Government response. Further information is provided below in response to the Committee’s requests. Interim compensation payments of up to £100,000 are available to postmasters who meet the following criteria: i) their Horizon-related conviction has been overturned by the Courts; ii) they do …
Department for Business and Trade
8
Recommendation
Eighth Report - Post Office and Horizon…
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 …
Government response. Further information is provided below in response to the Committee’s requests. Interim compensation payments of up to £100,000 are available to postmasters who meet the following criteria: i) their Horizon-related conviction has been overturned by the Courts; ii) they do …
Department for Business and Trade
9
Conclusion
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government is aware that Herbert Smith Freehills was employed by Lloyds Banking Group to provide legal support in relation to the HBOS Reading compensation process. We are also aware that the All-Party Parliamentary Group on Fair Business Banking submitted …
Department for Business and Trade
10
Conclusion
Eighth Report - Post Office and Horizon…
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. The Government is aware that Herbert Smith Freehills was employed by Lloyds Banking Group to provide legal support in relation to the HBOS Reading compensation process. We are also aware that the All-Party Parliamentary Group on Fair Business Banking submitted …
Department for Business and Trade
11
Conclusion
Eighth Report - Post Office and Horizon…
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 …
Government response. No rights are waived by postmasters in joining the Scheme. Agreement on the part of the postmaster that a settlement is full and final (meaning the postmaster cannot make any further claims against the Post Office in relation to the …
Department for Business and Trade
12
Recommendation
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government accepts the Committee’s recommendation and has set out more detail on these points below. The Terms of Reference for the Historical Shortfall Scheme were developed by the Post Office in consultation with, and endorsed by, the legal representatives …
Department for Business and Trade
13
Conclusion
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government accepts the Committee’s recommendation.
Department for Business and Trade
14
Conclusion
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government accepts the Committee’s recommendation.
Department for Business and Trade
15
Recommendation
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government accepts the Committee’s recommendation.
Department for Business and Trade
16
Conclusion
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government accepts the Committee’s recommendation.
Department for Business and Trade
17
Conclusion
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government has acted on this issue. The Government announced on 22 March 2022 that it will make funding available to ensure postmasters who took part in the Group Litigation Order (GLO) case are not financially disadvantaged by their decision …
Department for Business and Trade
18
Recommendation
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government accepts the Committee’s recommendation.
Department for Business and Trade
19
Conclusion
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government accepts the Committee’s recommendation.
Department for Business and Trade
20
Conclusion
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government accepts the Committee’s recommendation.
Department for Business and Trade
21
Recommendation
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government accepts the Committee’s recommendation. The Post Office has increased the capacity of the Independent Advisory Panel to deal with this and are now making good progress. At the 11 January 2002 Select Committee evidence session, Minister Scully set …
Department for Business and Trade
22
Recommendation
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government accepts the Committee’s recommendation. There have been 2,365 eligible claims to the Historical Shortfall Scheme. Each case is complex and unique, requiring specific examination of the details of the case and the circumstances in each. To support the …
Department for Business and Trade
23
Conclusion
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government accepts the Committee’s recommendation.
Department for Business and Trade
24
Recommendation
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government accepts the Committee’s recommendation. It is recognised that, due to the absence of records and the amount of time that has passed since losses were incurred, postmasters may face challenges in evidencing their claim. The Scheme was therefore …
Department for Business and Trade
25
Conclusion
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government accepts the Committee’s recommendation. The terms of the Historical Shortfall Scheme include provisions for those who do not have access to evidence to support their claim. The guidelines for the Historical Shortfall Scheme state that “where the postmaster …
Department for Business and Trade
26
Conclusion
Eighth Report - Post Office and Horizon…
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 …
Government response. The Government accepts the Committee’s recommendation and has agreed with the Post Office that it will publish this information on its website,3 subject to the caveats regarding privacy outlined below. This includes the information requested on interim payments and will …
Department for Business and Trade
27
Recommendation
Eighth Report - Post Office and Horizon…
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 …
Government response. The Post Office is committed to ensuring that all applicants to the Historical Shortfall Scheme are provided with adequate support throughout the application process, which is, of course, a sentiment shared by Government. An independent well-being helpline was established by …
Department for Business and Trade
28
Recommendation
Eighth Report - Post Office and Horizon…
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 …
Government response. As noted in Recommendation 2, the Government is supportive of the intention behind the recommendation but is concerned that the time needed to set up such an independent body is likely to lead to additional delays and ongoing frustration for …
Department for Business and Trade
29
Recommendation
Eighth Report - Post Office and Horizon…
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 …
Government response. The information requested by the Committee is provided below. After the Committee’s 11 January hearing, on 2 February 2022, the Minister for Small Business, Consumers and Labour Markets wrote to the Committee setting out costs to date and expected final …
Department for Business and Trade