Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, with reference to the Supplementary Estimates, published on 27 February 2024, HC 500, how she plans to spend the additional £1.09 billion requested by her Department for the Post Office; and whether this sum includes the £123 million already settled with sub-postmasters by the Post Office.

The £1.09 billion requested by the Department for Post Office related matters as part of Supplementary Estimates for 23/24 is split by £338.4 million Resource Departmental Expenditure Limit (RDEL), and £752.4 million non-cash Annually Managed Expenditure (AME).

The £338.4 million RDEL includes funding for redress to postmasters, investment costs to replace the Horizon IT system, delivery of the Horizon IT Inquiry and compensation schemes, Post Office’s corporation tax liabilities and the Group Litigation Order redress scheme.

The increase of £752.4 million AME budget is due to the expected increase in the provision for likely future costs relating to Post Office redress schemes. The forecast for the outstanding estimated liability is updated and agreed with HM Treasury on an annual basis.

This detail is shortly to be published in the Explanatory Memorandum for the Department.

Funding drawn down by the Department at the Supplementary Estimate relates only to value of expected redress settlements within this Financial Year, as well as other payments outlined above, and not to total amounts paid out to postmasters to date.