Response from Blair McDougall MP, Minister for Small Business and Economic Transformation to the Victims’ Commissioner – Victims of the Post Office Scandal

The letter acknowledges the gravity of the issue and details significant progress, including increasing the total compensation. The Minister also notes the development of a restorative justice programme and assures that accountability is being pursued through the statutory Inquiry and Metropolitan Police investigation.

• The full response can be read in the PDF above
• It can also be found on the GOV.UK website

Letter from Blair McDougall MP, Minister for Small Business and Economic Transformation

Dear Baroness Newlove,

Victims of the Post Office Scandal

Thank you for your letter dated 3 October. I appreciate you taking the time to write and am sorry I have not been able to reply to your letter sooner; unfortunately, your letter was not received by my department until 24 October. I want to acknowledge the importance of the work you do in supporting victims and amplifying their voices. I would be happy to work with you more directly going forwards and my team stands ready to work with yours to make that happen.

Like you, I am deeply moved by the gravity of the Horizon scandal and the profound impact it has had on so many lives over many years. Since taking up this role in September, ensuring that Horizon victims receive the justice and support they deserve has been one of my highest priorities. This government has been committed to improving the compensation arrangements for postmasters, and I’m pleased that our efforts have led to significant progress. The total amount of compensation paid has increased fivefold to over £1.2 billion. While some of the criticisms you referenced were indeed valid in the early stages of the schemes, many have since been addressed through the changes we’ve made. However, I fully recognise that there is still more to do, and we remain focused on making further improvements. Many of the concerns you raised are familiar and already being actively addressed. For instance, we have introduced a fixed offer of £75,000 for claimants in the Horizon Shortfall Scheme (HSS), which has underpinned much of the recent acceleration of redress. We have also created a new independent route of appeal against HSS decisions.

Beyond financial compensation, we are also working to support postmasters in other meaningful ways. My Department – together with the Post Office and Fujitsu – are developing a restorative justice programme in partnership with the Restorative Justice Council which aims to address some of the non-financial hurt which postmasters are still experiencing. Several of the points you raised have been considered by the statutory Post Office Horizon IT Inquiry, chaired by Sir Wyn Williams. He has taken extensive evidence from postmasters and others. He published his report on compensation and the human impacts of the scandal in July; we published a government response in October. You may find these documents helpful in considering any further work on Horizon issues.

We have also established the independent Horizon Compensation Advisory Board, which includes respected advocates for postmasters. Their insights continue to shape and strengthen our approach to compensation. I understand your concerns about accountability. Work on individual accountability must await the Inquiry’s final report, but I can assure you that the Metropolitan Police are dedicating substantial resources to investigating potential Horizon-related offences. I attach a note which responds in turn to each of the issues which you raise. Please feel free to share it with the postmasters who have attended your sessions. I would also encourage you to continue to engage with my officials who can keep you updated on developments in this rapidly evolving area.

Thanks again for your work on this.

Yours sincerely,

BLAIR McDOUGALL MP
Minister for Small Business and Economic Transformation