Post Office Horizon Scandal: Compensation Payments

Debate between Lord Touhig and Lord Offord of Garvel

Monday 19th February 2024 Lords Chamber

[Lord Touhig]

To ask His Majesty’s Government what assessment they have made of claims that the Post Office was asked to delay compensation payments to sub-postmasters who were victims of the Horizon IT scandal.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Scotland Office (Lord Offord of Garvel) (Con)]

I thank the noble Lord for that Question. I can utterly refute this allegation. This Government have sped up compensation for victims and have consistently encouraged postmasters to come forward with claims. To suggest that any actions or conversations happened to the contrary is incorrect. In fact, upon appointment, Mr Staunton was set concrete objectives in writing to focus on reaching settlements for claimants—clear evidence of the Government’s intent. My right honourable friend the Secretary of State for Business and Trade will shortly give an update to the House of Commons with a detailed rebuttal of these allegations.

[Lord Touhig (Lab)]

I thank the Minister for the point that he makes about the Statement in the other place. I am sure that this whole House will welcome it being repeated in this House later in the week. Mr Henry Staunton, the former chairman of the Post Office, said that he was told by a “fairly senior person”—his words—to stall on compensation payments to Horizon victims. The Sunday Times yesterday said that the Government utterly refuted these allegations, and the Minister has repeated that today. To make this statement with such confidence, obviously the Government will have had to fully investigate the matter, and I am sure that the Minister would want to confirm this. Can the Minister tell us who carried out this investigation and whether Mr Staunton was approached and asked for the name of the person he said had told him to stall the compensation payments? Can the Minister confirm that the Government will provide a full copy of the investigation report on the Post Office Horizon IT inquiry?

[Lord Offord of Garvel (Con)]

The sadness about this is that the Secretary of State said that she did not want to conduct HR in public, and this is now the situation that we have got ourselves into. We are very clear that no civil servant made that statement; perhaps it is up to Mr Staunton to provide a name, and we can then investigate whether that was the case. In the meantime, it does not make sense, given that the Post Office has been fully funded for compensation already—before the programme “Mr Bates vs The Post Office”, two-thirds of postmasters had had their claims met in full. Indeed, of the £160 million paid out so far to sub-postmasters, £138 million was paid out by December, before the television series. Therefore, it was fully funded, and there is no basis for the allegation.

Post Office Appointments: Ministerial Responsibility

Debate between Lord Touhig and Lord Offord of Garvel

Wednesday 7th February 2024 Lords Chamber

[Lord Touhig]

To ask His Majesty’s Government what responsibility ministers have for the appointment of the Board and Chief Executive Officer of the Post Office.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Scotland Office (Lord Offord of Garvel) (Con)]

My Lords, I thank the noble Lord for his Question. As set out in the Post Office’s articles of association and shareholder relationship framework document, the Secretary of State for Business and Trade appoints the chair and directors of the Post Office and approves the appointment of the chief executive officer. Strong and effective leadership of the Post Office is a necessity and the Government therefore take their role in making the right appointments very seriously.

[Lord Touhig (Lab)]

My Lords, I believe that the shortcomings of the Post Office board and senior executives were responsible for this unparalleled injustice. Last week, the Minister said that the Government were looking at tightening the governance of the Post Office. Can I suggest that one way of doing this would be for the Ministers making the appointments to also ensure regular appraisals of those they have appointed? After all, who among us in this Chamber has not gone through an appraisal at some time? If such an appraisal scheme already existed, perhaps sub-postmasters across Britain would not be in despair, feeling that they were—I think of the words of Toby Jones, who played Mr Bates in the TV drama—the “skint little people” who are

“fighting a war against an enemy owned by the British Government”.

[Lord Offord of Garvel (Con)]

I thank the noble Lord for that. The whole House shares the noble Lord’s sentiments that this is a deeply shameful episode, which went on for over 20 years. It is quite incredible to think back on the scale of the failure here, both of governance and of corporate life. Since the Horizon scandal came to light, the Government have taken quite a lot of steps to strengthen the governance of the Post Office. However, there are a number of ongoing reviews, including one by Simmons & Simmons, to look at exactly how the appraisal system works. Once the Wyn Williams review—a statutory inquiry—has concluded, we will be able to take steps around corporate governance going forward.