Recommendation 8

HM Government Not Addressed

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 not belong to the group of postmasters whose convictions were overturned but were not opposed by the company on public interest grounds (more information on this below); and iii) they have submitted a claim to the Post Office. If these three grounds are met, then interim compensation will be provided.4 To date, three claims for interim compensation payments have been declined for the reason given in point ii) above. In each case, the Post Office did not consider Horizon evidence to be essential to the prosecution in accordance with the Court of Appeal’s 2021 judgement in Hamilton and others; however, the Post Office did not oppose the quashing of these convictions, as it would not have been in the public interest to hold a retrial (which is the procedure in Crown Court appeals). Although these postmasters are not eligible for an interim payment, they may still submit a claim to the Post Office for compensation, which will be considered on its merits. The Settlement Process Each settlement requires an individual negotiation between the legal representatives of the postmaster and of the Post Office. The representatives will need to discuss all the matters in the claim to work out where agreement can be reached. Where it is not possible to reach agreement, the parties may jointly agree to a mediation. Mediation is a flexible, voluntary and confidential form of Alternative Dispute Resolution (ADR), in which a neutral third party assists parties to work towards a negotiated settlement of their dispute. Should it be necessary to move into mediation, the parties will agree on the appointment of a mediator to examine the areas of dispute and work towards a resolution. Independence is achieved by both parties agreeing on the mediator and the process to be followed. The parties retain control of the decision whether or not to settle and on what terms. To date, no negotiations have reached a stage where the parties jointly consider it to be beneficial to have a mediation. Government’s Role The Government has responsibility for providing the funding for settlement payments, agreeing significant decisions in relation to the settlement strategy and monitoring the Post Office’s progress towards reaching final settlements. BEIS, supported by UKGI, has been involved in the design of the compensation programme and holds regular monitoring,