Select committee: Business, Innovation, Science and Trade Committee

Recommendation 29

Eighth Report - Post Office and Horizon - Compensation: interim report Published 17 Feb 2022 Paragraph 72 Addressed to Department for Business and Trade
Recommendation (the committee's words)
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.

From: Business, Innovation, Science and Trade Committee, Eighth Report - Post Office and Horizon - Compensation: interim report (HC 1129), paragraph 72, 17 February 2022

Government response

The government responded to the whole report on 27 April 2022 (deadline 17 April 2022).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government accepts several of the Committee's recommendations on transparency and the Historical Shortfall Scheme, but does not propose to set up the recommended new independent body for wrongly convicted postmasters.

  • On the 555 group litigants, the government says it "will make funding available" so they are "not financially disadvantaged" by litigating, and will announce the results of informal consultation to Parliament "in the coming weeks".
  • On an independent body, it is "concerned that setting up such a body would take significant time". It is instead working with existing bodies such as the CCRC, and has encouraged the Post Office to appoint an intermediary body.
  • It "accepts" the recommendation on monthly updates on payments, to be published on the Post Office website, with the range of final settlement amounts released only once "a critical mass of settlements has been reached" for privacy reasons.
  • On targets for Historical Shortfall Scheme offers, it accepts the recommendation but suggests BEIS updates on oversight actions "on a quarterly, rather than monthly basis".

Read the government's response ↗ Report an error