Asked by: Lord Arbuthnot of Edrom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government on which department's accounts their commitment to fund compensation for sub-postmasters affected by issues arising from the Horizon software system appears.
Answered by Lord Offord of Garvel
Just over £1bn has been committed by Government to ensure postmasters are compensated fairly. This funding covers the three Horizon compensation schemes: the Overturned Convictions scheme, the Group Litigation Order Scheme, and the Horizon Shortfall Scheme. Funding is agreed by HM Treasury at the relevant Estimate on the basis of the Department for Business and Trade’s forecasts for compensation.
A provision was made in the 2022/23 accounts of the Department of Business, Energy & Industrial Strategy (BEIS). Provisions should not be seen as an indication of the total amount of money available for compensation or how much claimants will receive; they are an estimate based on the latest information available.
The total discounted liability as at 31 March 2023 for sub-postmasters affected by issues arising from the Horizon software system was estimated at £600 million. This provision has subsequently transferred over to the Department for Business and Trade (DBT) and an updated value will be reflected in the department’s 2023-24 annual report and accounts to reflect policy announcements and changes since last years accounts.
Provision values will not include compensation paid to date. Annual accounts are produced on an accruals basis and compensation payments are recognised on this basis.
Asked by: Lord Arbuthnot of Edrom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government whether in incurring potential liabilities on the group litigation against Alan Bates and others which concluded in 2019, the Post Office required authorisation from the Government; and if so, what authorisation was needed and from whom; and whether such authorisation was granted.
Answered by Lord Offord of Garvel
Under its Articles of Association, the Post Office is required to gain prior written consent from the Shareholder before entering into a transaction which involves the incurrence of a commitment, liability or payment of a sum in excess of £50 million. Officials have checked our records and have seen no evidence of any such written consent.