Parliamentary Committee urges independent oversight of Post Office compensation scheme
The institution is 'not fit' to administer the programme, it says
A parliamentary committee has issued scathing criticism of the Post Office's handling of the Horizon scandal compensation scheme, stating that the institution is "not fit" to administer the programme.
The Business and Trade Committee, tasked with investigating the matter, published its report on Thursday, calling for the immediate removal of the Post Office from compensation schemes associated with the Horizon scandal.
The committee said that only 20% of the allocated compensation budget has been distributed to victims so far, and an independent body is needed to oversee the redress processes.
The Horizon scandal, which unfolded between 1999 and 2015, resulted in the wrongful convictions of many sub-postmasters due to flawed evidence originating from Fujitsu's Horizon accounting system.
The malfunctioning software falsely showed discrepancies in branch finances, leading to severe consequences. Some individuals experienced imprisonment, financial devastation and public shaming. Tragically, a few lost their lives as a result.
Despite a budget of £1 billion set aside for compensation, bureaucratic hurdles have hindered the timely delivery of justice to affected individuals.
The Post Office operates two financial redress schemes for affected operators and also provides evidence to a third scheme for 555 post office operators who took legal action in 2016.
Chairman of the committee, Liam Byrne, condemned the sluggish pace of compensation delivery, highlighting that only £1 in every £5 allocated for compensation has been disbursed to subpostmasters.
"Justice delayed is justice denied. And bluntly justice has been denied to our innocent sub-postmasters for far too long. It's high time for the circus of recent weeks to end and for cheques to start landing on the doormats of innocent victims," Byrne said.
He described the situation as a "national disgrace".
The committee's call for action comes amidst revelations of internal turmoil within the Post Office, with allegations of bullying levelled against CEO Nick Read by former chairman Henry Staunton.
The report accused Read of providing misleading evidence, including false denials of using non-disclosure agreements and hiring public relations firms to manage fallout from the recent ITV drama about the scandal Mr Bates vs The Post Office.
Read, a former British army officer, denied the accusations, asserting that there were no confidentiality provisions in the settlements reached through the compensation scheme.
The report recommends lifting the cap on victims' legal expenses and introducing standardised tariffs to facilitate accurate estimations of entitlements.
Byrne stressed the necessity of enshrining legally binding timeframes for compensation delivery into law, a proposal dubbed the "Mr Bates Test" after lead campaigner Alan Bates.
"To guarantee this scandal drags on no longer, we have to enshrine into law an idea proposed by Mr Bates, of legally binding timetables for payouts. Any new Bill that the Government presents to parliament, must now pass the 'Mr Bates Test' of legally binding timeframes for settling justice," Byrne added.
In response to the committee report, Post Office expressed willingness to relinquish the organisation's role in administering compensation, acknowledging the need for swift action to provide redress to those affected.
"Post Office welcomes the direction of this report into speeding redress for one of the worst miscarriages of justice in British history, and we will study its recommendations carefully," the Post Office said.
Despite £179 million already delivered in redress, the organisation acknowledged the need for further action to address one of the worst miscarriages of justice in British history.
The report also highlighted a pervasive "toxic" culture within the Post Office and underscored the urgent need for comprehensive reform.