Source · Select Committees · Business and Trade Committee
Recommendation 29
29
We look forward to receiving estimates from BEIS of the total expected cost of the...
Recommendation
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
Government Response
Not Addressed
HM Government
Not Addressed
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 outturn costs relating to the Post Office and Horizon Issues. His letter was published on the Committee’s website on 9 February.19 As set out in the Minister’s letter, the £685.6 million is not a direct grant to the Post Office. It is the maximum budget cover agreed by HM Treasury to pay full and final compensation to postmasters whose Horizon-related criminal convictions are overturned as well as to those postmasters who were prosecuted but not convicted. This sum is in addition to the £94.4 million maximum budget cover made available to pay interim compensation payments of up to £100,000 to postmasters whose convictions are quashed. This funding includes compensation for members of the 555 who have their Horizon-related criminal convictions quashed. It does not include any element in respect of other Group Litigation Order claimants including those who were prosecuted but not convicted, whose cases will be addressed as part of compensation for the GLO group more generally (see response to Recommendation 1 above). Separate funding has been agreed to allow the successful completion of the Historical Shortfall Scheme.