Source · Select Committees · Business and Trade Committee
Recommendation 11
11
Accepted in Part
Introduce binding timeframes for Group Litigation Order claims, with financial penalties for delays.
Recommendation
The Committee welcomes that the majority of first offers for the Group Litigation Order Scheme will be complete by March 2025. This, however, does not address the time it takes between first offer and final payment. Sub-postmasters have waited long enough. The Government should aim wherever possible to complete Group Litigation Order redress claims by March 2025 as suggested to us in evidence from Sir Alan Bates. We know that this will not be possible for some claims due to the complexity of the claim or the vulnerability of claimants, so the Government must introduce binding timeframes at each stage of Group Litigation Order Scheme, with financial penalties awarded to the claimant if these timeframes are not met. As with the Horizon Shortfall Scheme, timeframes should only be imposed on the Government side, giving the sub-postmaster ample time to consider their position. (Recommendation, Paragraph 43)
Government Response Summary
The government partially accepts, committing to make redress offers for 90% of completed claims within 40 working days and aiming to pay substantial redress to the majority of GLO members by 31 March, but does not commit to binding timeframes with financial penalties.
Government Response
Accepted in Part
HM Government
Accepted in Part
• The Government partially accepts this recommendation. • The Government inherited a Group Litigation Order Scheme which has similarly been criticised for being too legalistic. The Government has undertaken to respond to the Advisory Board’s recommendations aimed to ensure that redress for any future scandal is non-adversarial. It has also been working hard with claimants’ lawyers to speed up claims and offers. • As of 21st February 2025, 425 full claims had been received by the Department. Of these 425 claims, 265 have been paid and a further 4 have accepted offers and are awaiting payment. Another 138 postmasters have received offers from the department and the remaining 18 are awaiting offers. • The Department expects to make redress offers in respect of 90% of completed claims within 40 working days. Redress will be paid in full when offers are accepted. If an offer is challenged, the claimant will receive 80% of it. • We therefore expect to pay substantial redress to the great majority of GLO members by 31 March. • The Department has set a target to issue a substantive response to 90% of challenge cases received after 1 December within 40 working days of receiving a complete challenge. Claims will be assessed in the date order in which they were submitted, so no challenge submitted before 1 December will be left behind. • The Government is pleased to note that as of 21 February 2025, 95% of claimants (18 out of 19) who submitted complete challenges after 1 December received their substantive response within 40 working days of doing so. • Claimants already receive compensation for the time taken to deal with claims, in that interest is paid on most aspects of claims in accordance with standard legal principles: the amount payable therefore increases over time. • The Department and Addleshaw Goddard have brought in additional staff to assist, and as the outstanding initial offer claims reduce, further staff will focus on settling challenged claims. ...