Recommendations & Conclusions
14 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 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 …
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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 that the prolonged legal proceedings and the resulting delay to POL’s decision to settle have reduced the compensation the 555 were entitled to. Both the Post Office Ltd. and the Minister accept that this is unjust. We agree with the POL CEO, Nick Read, that it will be impossible for the POL to move forward until this issue is fully addressed. Our view is that the responsibility for addressing this injustice lies with the Government. Consideration should be given to recompense the legal fees of the 555 as an initial payment whilst full determination is considered.
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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 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
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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
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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
6
Recommendation
Eighth Report - Post Office and Horizon…
Accepted
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 …
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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 Horizon scandal, transparency on these issues is crucial to restoring trust.
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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 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 …
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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 a large extent on a lack of transparency and trust. It is imperative that POL decisions on compensation are scrutinised by BEIS and are open and transparent.
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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
9
Conclusion
Eighth Report - Post Office and Horizon…
Accepted
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 …
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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 are not reassured by the Minister or the POL CEO’s arguments that the issues associated with the HBOS scheme do not necessarily question their role in the Historical Shortfall Scheme.
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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 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 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 …
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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 offers are made, in particular whether claimants were aware before agreeing to take part in the Scheme of its terms of reference and methodology and what rights, if any, were waived.
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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
17
Conclusion
Eighth Report - Post Office and Horizon…
Accepted
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 …
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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 convictions of sub-postmasters.
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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.
Read full response →
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 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 …
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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 are agreed and met.
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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 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 …
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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 of average claims paid out so far with a commitment to sharing such details going forward to ensure transparency and trust in the Scheme. We also recommend that the Government is explicit about how BEIS and UKGI are providing oversight of the appropriateness of offers made to claimants.
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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
24
Recommendation
Eighth Report - Post Office and Horizon…
Accepted
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 …
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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 Scheme or rejected by claimants, where an absence of information has been relevant. We also recommend that BEIS and UKGI confirm what safeguards it agreed when signing off the Scheme for cases were there was a lack of records.
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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 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 …
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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 of the Post Office during those applicable years should be sufficient to agree that claimants must be given a significant level of benefit of the doubt when compensation is being calculated.
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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 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 …
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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 accounting support. If claimants accept offers that have not fully covered their losses, this in itself is a scandal, and justice will not be done.
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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
29
Recommendation
Eighth Report - Post Office and Horizon…
Accepted
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 …
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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 fair settlement with the 555, which we have recommended. We were surprised to discover that in December 2021 BEIS had identified a £685.6 million direct grant to POL for the Post Office Historical Matters subsidy scheme and that this was not referenced in evidence to our Committee. The Government must explain whether this direct grant is to cover the whole estimated cost of the Horizon scandal and whether this includes money assigned for achieving a fair settlement with the 555. (Paragraph 72) Post Office and Horizon - Compensationn interim report 27
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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