← LEADERSHIP TERMINAL

UK PARLIAMENT · SITTING

Kevin Hollinrake

MP for Thirsk and Malton · Conservative · United Kingdom

IN THEIR OWN WORDS

That issue is one of the many things that the people who signed the petition are concerned about, Dr Huq. One of the big things that the Government promised, which I agree with them about, is the need to encourage faster growth in our economy. Of course that is right, but look at where that growth is.

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The UK economy went through many challenges, of course, some of them caused by Brexit; the reality is that a change like that was bound to have a short-term effect—but only a short-term effect. The country grew faster than Germany and France during that period of time.

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As I said before, governing is not easy; we had many challenges ourselves, and we did not get everything right, but what we did during that difficult period of time—those 14 years—was get 1.2 million more people employed in our economy. Unemployment was halved during our time in office.

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Of course, many Government Members supported his leadership challenge. We are here now, looking forward to a general election coming down the track. We are ready for a general election when the Government are, because, unlike them, we have a strong leader—against their weak leader.

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I was, absolutely. I thank my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) for his excellent opening speech. He made so many good points, not least about the level of support for this petition.

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Members on the Government side of the House also feel betrayed and angry with their own leadership, for marching them up to the top of the hill and marching them back down again on many of these issues, but they do not feel as betrayed as the businesspeople in this country in particular.

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The complete record

Every one of 3,516 lines we hold for Kevin Hollinrake, in date order, each linked to its source. Free to read, in full, without an account. Page 15 of 71.

  1. That is why we have different rates. I declare my interest—I have daughters of that age who earn the lower rates of the minimum wage and I am very happy that that is the case, because I would rather that they had a job than no job at this point in time. The minimum wage and the national living wage are floors, not ceilings. If good employers pay more, and many do, clearly we welcome that. I will just conclude—

    DRAFT NATIONAL MINIMUM WAGE (AMENDMENT) (NO. 2) REGULATIONS 2024 · 2024-03-18 · READ IN HANSARD

  2. I would never do that; as a former employer myself, I would never do that. However, I do not accept the picture that the hon. Member paints. The hospitality sector is a fantastic sector in this country, with many good businesses and many good employers. For him to trash the reputation of the sector in that way, saying that zero-hours contracts are “rampant” in the sector—I think that he should just check his language. That sector does a fine job under very difficult circumstances, and the circumstances are far more difficult in Scotland. Regarding the Low Pay Commission, the hon. Member made the point about younger workers on lower pay. That is a very fair point; he raises it time and again. It is our position and the position of the Low Pay Commission that younger people are more susceptible to a weaker labour market.

    DRAFT NATIONAL MINIMUM WAGE (AMENDMENT) (NO. 2) REGULATIONS 2024 · 2024-03-18 · READ IN HANSARD

  3. As I said before, I do not know the answer to that question; if the hon. Gentleman wants to put down a written question on the subject, we can give him an answer to it by separate means. This debate is an important reminder of the good that Government can achieve—a sentiment that I am sure will be echoed by Committee members. I thank the Low Pay Commission once again for its advice this year, which has been as expert as ever, and I commend the regulations to the House. Question put and agreed to. Resolved, That the Committee has considered the draft National Minimum Wage (Amendment) (No. 2) Regulations 2024.

    DRAFT NATIONAL MINIMUM WAGE (AMENDMENT) (NO. 2) REGULATIONS 2024 · 2024-03-18 · READ IN HANSARD

  4. I beg to move, That the Committee has considered the draft Economic Crime and Corporate Transparency Act 2023 (Consequential, Supplementary and Incidental Provisions) Regulations 2024.

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  5. In conclusion, I emphasise that the regulations are a further step towards effective implementation of the 2023 Act. I hope that Members will support them. I commend both sets of draft regulations to the Committee.

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  6. The other of the two instruments before us today is the Economic Crime and Corporate Transparency Act 2023 (Consequential, Supplementary and Incidental Provisions) Regulations 2024, which make minor consequential amendments to the 2006 Act and the Economic Crime (Transparency and Enforcement) Act 2022. They also introduce minor technical changes to eight pieces of secondary legislation. These regulations ensure that the changes made to the 2006 Act will also apply consistently to the law governing other business entities registered in the UK where that is possible. For example, this lifts restrictions on the use and disclosure of certain data by the registrar, allowing her to share that data more widely, and particularly with public authorities for purposes connected with the exercise of their functions.

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  7. Many of these entities are in the process of being restored to their respective register, and Companies House has been working with overseas jurisdictions to ensure compliance with the requirements. Companies House has taken robust action against the entities that have failed to comply with the requirements. As of 11 March, more than 400 penalty notices had been issued, with penalties totalling more than £20 million. That includes cases in which Companies House has received representations and appeals that are ongoing. The next phase in the compliance process is imposing charges against land held by overseas entities where penalties remain unpaid. I will provide a progress update when we debate the next set of regulations relating to the register of overseas entities, which we will lay in Parliament in the coming months.

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  8. That will ensure that evidence of organised crime can be pursued by the most appropriate agency. This instrument makes minor changes to the Register of Overseas Entities (Penalties and Northern Ireland Dispositions) Regulations 2023. These technical changes ensure consistency between the two financial penalty regimes. As of 11 March 2024, 30,614 overseas entities had registered with Companies House. A further 857 overseas entities had notified Companies House that they had disposed of all their interests in land before the register opened. That is a very good rate of compliance, as Companies House estimates that 10% of the entities originally in scope are dissolved or struck off.

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  9. It means that the registrar will now have the discretion to choose to pursue a financial penalty or to pass over to law enforcement to consider criminal sanction. It is important to note that the 2023 Act allows that, where a civil financial penalty is imposed on a person, it can contribute to that person being disqualified from acting as a UK director. All of this means that we are striking the right balance between deterring non-compliance and not unduly burdening small business. Companies House’s new intelligence hub will also strengthen the registrar’s role in fighting organised crime. The hub will use data science to identify patterns and threats of economic crime on the register. Via new data-sharing powers, Companies House will proactively share its analysis and intelligence with law enforcement partners and supervisory bodies.

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  10. The instrument sets out that financial penalties imposed by the registrar may be fixed, a daily rate or a combination of both. The penalties will be based on the severity of the offence, up to a maximum total of £10,000. In certain cases, more than one penalty can be imposed. This flexibility allows proportionate and effective targeting of those who commit an offence. The instrument gives the registrar the power to vary or revoke financial penalties on a case-by-case basis —for example, if new information comes to light that aggravates or mitigates any offence. The instrument also sets out the grounds for appeal and the court’s powers in relation to the appeal. This adds to the tools available to the registrar to promote compliance and maintain the integrity of the UK companies register.

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  11. The 2023 Act sets out that the registrar may impose a financial penalty as an alternative to criminal prosecution where the registrar is satisfied beyond reasonable doubt that a person has engaged in conduct amounting to a relevant offence under the 2006 Act. In turn, this instrument sets out the procedure for the imposition and enforcement of financial penalties. If the registrar suspects that a person has committed a relevant offence, she may issue a written warning giving them at least 28 days to make representations about their conduct. If the registrar is satisfied beyond reasonable doubt that the person has committed a relevant offence, she may issue a penalty notice in writing to that person, giving them 28 days’ notice to pay the penalty.

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  12. That is why we are here today to debate the next set of regulations in the reform programme. I will first address the financial penalty regulations. Currently, obligations in the Companies Act 2006, which I will refer to as “the 2006 Act”, relating to the functions of the registrar are enforced primarily through the criminal justice system. The only civil penalty regime that Companies House currently operates under the 2006 Act is the accounts late filing penalty regime, where a company automatically incurs a penalty for failing to file its accounts on time. That regime will remain unaffected by these regulations.

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  13. Companies House has started to cleanse the register and quickly remove names and addresses that have been used without consent. Going forward, Companies House is turning its attention to register entries that it knows to be problematic and is beginning to remove what it has already identified as manifestly fraudulent filings. For example, last week there were media reports of hundreds of rogue filings at Companies House, totalling approximately 800 “satisfaction of security” forms. I am pleased to say that, thanks to the registrar’s new powers, all of these fraudulent filings have been taken down swiftly by Companies House. That would not have been possible prior to 4 March. Although that is already a major improvement, there is much more work to be done.

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  14. As I have stressed on many occasions, it will bear down on kleptocrats, criminals and terrorists who abuse our open economy, will significantly strengthen the UK’s reputation as a place where legitimate business can thrive, and will drive dirty money out of the UK. Passing the 2023 Act was of course only the first step on the journey to make these reforms a reality. We now face the task of designing and implementing the many new processes and procedures at Companies House, underpinned by a substantial programme of secondary legislation that consists of some 50 statutory instruments. The first of those instruments has been approved by both Houses, which means that I am glad to announce that the first of the 2023 Act’s reforms has already taken effect.

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  15. It is a pleasure to serve with you in the Chair, Ms Vaz. The first set of regulations were laid before the House on 30 January 2024, the second on 19 February 2024. These regulations form part of a series of secondary legislation needed to effectively implement the Economic Crime and Corporate Transparency Act 2023, which I will refer to as “the 2023 Act”. The measures effectively form the basis of a civil penalty regime and offer data- sharing help to ensure that we can fight economic crime. The 2023 Act is a landmark piece of legislation, which demonstrates the Government’s commitment to tackling economic crime.

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  16. We think that provides Companies House and the Insolvency Service, which is the enforcement body for such matters, with the extra resources needed, and hundreds more people will come as a result. It will also fund things such as the intelligence hub, which is hugely important. The hon. Member for Glenrothes might want to alert Companies House about the address that has been used improperly. Companies House should then deal with that, and can do so much more quickly as a result of the new powers.

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  17. I thank Committee members for their valuable contributions to the debate. The shadow Minister asked about resources; the Government provided £63 million to start the work at Companies House on the change from having a dumb register to having a proactive registrar who maintains the integrity of the register. Also, £20 million was provided last year through the economic crime levy, which will be one of the future sources of funding. The key area for funding is the uplift in the registration fees and annual filing fees at Companies House. It used to be £12 to register a company; it is now £50. It used to be £13 to lodge an annual return; it is now £34.

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  18. The debate has highlighted the need for a robust financial penalty regime at Companies House, as well as consistency in the law that governs business entities. I commend both sets of draft regulations to the Committee. Question put and agreed to. Draft Economic Crime and Corporate Transparency Act 2023 (Financial Penalty) Regulations 2024 Resolved, That the Committee has considered the draft Economic Crime and Corporate Transparency Act 2023 (Financial Penalty) Regulations 2024. —(Kevin Hollinrake.)

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  19. Gentleman raised Blackmore Bond again, and has done a fantastic job of raising that on so many occasions. We have finally seen the FCA actually do something about it, as a result of much work. I remind the hon. Gentleman that what underpins the whole regime is the recognition that it is impossible, given the number of records, for Companies House to be a policeman of every single record and everything that happens. Five million companies are on the register, and 800,000 were registered last year alone, so it is not practical to look at every single one, but there are serious consequences if people improperly or falsely file information, particularly if they do so maliciously. They can be sentenced to up to two years in prison. That underpins the regime as well. I thank you, Ms Vaz.

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  20. I am happy to talk to the hon. Gentleman offline about that particular case, but any Member of this House or member of the public can alert Companies House about incorrect filings. As I say, as a result of what we have already done, that can be acted on much more quickly. The hon. Gentleman talked about disqualification, and yes, absolutely, penalties can, as I said in my opening speech, contribute to a decision on disqualification. The penalties are civil penalties, but where the registrar feels that the conduct or offences are sufficiently serious, they can pass that on to the relevant prosecution body —the Insolvency Service, the police, the National Crime Agency or others. That is the kind of approach that Companies House typically takes. The hon.

    DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (CONSEQUENTIAL, SUPPLEMENTARY AND INCIDENTAL PROVISIONS) REGULATIONS 2024 DRAFT ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023 (FINANCIAL PENALTY) REGULATIONS 2024 · 2024-03-14 · READ IN HANSARD

  21. We will provide fair financial redress as promptly as we can, and we will exonerate those who were so unjustly convicted of crimes that they did not commit. I commend this statement to the House.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  22. Those who have already settled their claim below £75,000 will be offered a top-up to bring their total redress to that amount; over 2,000 postmasters will benefit quickly from this announcement. We are mindful that claims are not being submitted to the GLO scheme as swiftly as we would like. We have already announced the optional fixed-sum award of £75,000, but to ensure that we get help to claimants more quickly, I can announce today that anyone who chooses not to take that offer, and instead submits a full claim for individual assessment, will have their interim payment topped up to £50,000 straight away. Many postmasters’ lives have been ruined by the Horizon scandal, and we are working hard to deliver redress. We have set up the Williams inquiry, which will discover the truth.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  23. As of 5 March, 110 offers have been accepted, and over 100 people have taken the £75,000 fixed payment. Of those who have accepted the fixed payment, three quarters are new claimants, so the fixed offer has already meant that over 100 claims have been resolved promptly. In some cases, those people will have got more than they would have asked for. The fixed offer has also had a helpful effect on other claims, because it substantially reduces work on small claims by claimants’ lawyers, making more resource available to progress larger claims more quickly. I am pleased to announce today that the £75,000 fixed-sum award offer will now be extended to the Horizon shortfall scheme, to ensure that everyone is treated fairly across all the schemes.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  24. First, we are working with claimants’ lawyers to reduce the number of cases that require expert evidence—for example, from forensic accountants—or medical evidence, which delays claims. We will pilot that approach and, assuming that the pilot succeeds, we hope to expand it rapidly. Secondly, the advisory board and I have asked for monthly reports on each scheme. They will come from schemes’ independent case managers, where such managers are in place. We will publish the reports, which will give us the best basis on which to assess measures for speeding up redress. Finally, we are introducing optional fixed-sum awards. In January, the Government announced that they would offer an optional fixed-sum award of £75,000 to those in the group litigation order scheme.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  25. It would potentially mean imposing penalties on forensic accountants or others who are helping postmasters to prepare their claims. Doing that would probably cause some of them to withdraw from this work, which would slow down the delivery of redress. Furthermore, we do not want to be in the position of rushing postmasters into major decisions about their claims and the offers they receive, which would possibly mean that some are timed out of redress altogether. The advisory board has said that its “strong view” is that “this would be a backward step”, which is why we passed legislation less than two months ago to remove the arbitrary deadline from the group litigation order scheme. We do not want to reverse that change. However, the Government are acting to ensure that redress is delivered as quickly as possible.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  26. With your permission, Mr Speaker, I shall return to the House at a later date to provide details on how we intend to deliver redress for those who have their convictions overturned by the Bill or via subsequent measures taken in Scotland and Northern Ireland. We are discussing the details with the advisory board. The Financial Secretary to the Treasury, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston), will introduce legislation to make any payments made via the new scheme exempt from tax. Secondly, the Select Committee recommended that the Government introduce legally binding timeframes to deliver redress for sub-postmasters, with financial penalties for non-compliance. I strongly support the Committee’s desire to speed up redress, but we feel that its proposed regime would have the opposite impact.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  27. I thank the Business and Trade Committee, which recently published a report that includes some recommendations for the Government regarding Horizon redress. We will respond to them in the usual way, but today I would like to address two of the Committee’s recommendations. The first is that responsibility for redress should not lie with the Post Office, as it should be subject to independent oversight—something that has also been recommended to us by the Horizon compensation advisory board. I can announce today that the Department for Business and Trade, rather than the Post Office, will be responsible for the delivery of redress for overturned convictions. Final decisions on redress will be made by independent panels or independent individuals.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  28. Without Government intervention, many of these convictions could not be overturned, either because all the evidence has long been lost or because, quite simply, postmasters have lost faith in the state and the criminal justice system, and will not come forward to seek justice. The legislation will apply to England and Wales only. However, we are fully committed to working with the Scottish Government and the Northern Ireland Executive through regular, weekly official-level engagement to progress their own approaches. I have met my counterparts in the Scottish Government and the Northern Ireland Executive to offer support and address their concerns, and I will have further meetings. The financial redress scheme will be open to applicants throughout the UK, once convictions have been overturned.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  29. We accept, and have always been clear, that the legislation may overturn the convictions of some people who are guilty of genuine wrongdoing, but we believe this is a price worth paying to ensure that many innocent people are exonerated. However, the Government will seek to mitigate the risk of people receiving financial redress when they have not been wronged. The Government also accept that this legislation is unprecedented. It is an exceptional response to a factually exceptional situation. I want to be clear that this does not set a precedent, and neither is it a criticism of the judiciary or the courts, which have dealt swiftly with matters brought before them. The fact remains, however, that three years after the first convictions were overturned, only around 100 have been quashed.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  30. With permission, Mr Speaker, I shall make a statement about Post Office legislation and the Horizon redress schemes. I am very pleased to be able to announce that today we are introducing a new Bill that will quash the convictions of postmasters in England and Wales affected by the Horizon scandal. As set out in my written statement last month, this legislation will quash all convictions that meet a clear set of conditions. Those in scope will have their convictions quashed on the day that the new legislation is brought into force. Subject to parliamentary passage, our aim is for Royal Assent to be received as soon as possible before the summer recess.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  31. In the overturned conviction scheme, we have retired High Court judge Sir Gary Hickinbottom, and the £600,000 fixed-sum award; but on Mr Hickinbottom’s advice, we have also introduced the £450,000 payment as soon as a full claim has been submitted. We are doing everything we can to make sure that people are compensated as quickly as possible.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  32. That being the case, about 2,000 people will be topped up to £75,000, as I announced earlier, but it is not right to say, as I think she did, that the majority of people are waiting for compensation. The hon. Lady asked whether we wanted to deliver the compensation by the end of the year. Absolutely we do, but as I said, not everything is in our gift. We cannot compel a claimant to submit a claim, or know when that will happen. If somebody puts in a claim right towards the end of the year, for example, it may not be possible to deal with it before the end of the year. Not everything is in our gift, but we are keen to expedite anything that is. It is absolutely critical that we have independent oversight; all schemes have it.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  33. As she acknowledges, there are different legal processes in those areas, and we think it would be inappropriate for us to legislate for parts of the United Kingdom that have different legal processes and different prosecutors. Justice is devolved, although the Post Office is a UK-wide organisation, as she rightly says. That is why we think the legislation should allow devolved Administrations to legislate for themselves, if they choose to. We will work closely with them. Officials meet them weekly to assist wherever we can, so that compensation can be delivered UK-wide; that is how the scheme operates. I think the hon. Lady said that 80% of compensation was yet to be delivered. I may be wrong there, so I will check the record. Across all the schemes, in around two thirds of cases, full and final compensation has already been received.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  34. The shadow Minister’s comments are on the record, so I shall deal with them briefly. I think this is the second time she has made comments at the Dispatch Box that have been unfair or factually incorrect, and I hope that she will correct the record. If she had actually watched the interview I gave, she would know that I absolutely did condemn the words of Mr Hester. I said they were wrong. I said they were racist, and I think it is absolutely right that he has apologised. She should watch the full broadcast, and I hope that she will apologise to the House and correct the record. The points that the hon. Lady raised pertain largely to the Scottish and Northern Ireland devolved Administrations. I quite understand the concern around those issues, and I am very keen to ensure that we get this right across the United Kingdom.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  35. I thank my hon. Friend for his question, for his tireless campaigning in this area, and for his tireless work as my predecessor in this role. He did some great work to help us get where we are today. He is right to say there are some people who are not exonerated through this process—for example, people who have been before the Court of Appeal—but they will be able to appeal again in the light of our legislation. Of course, they had the right to do that anyway, but we will support them where we can in bringing forward their case to the Court of Appeal, and we very much hope that innocent people who follow that process will be exonerated.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  36. These are tough decisions, and I understand that Scottish Ministers will have to make similar decisions. They can decide to do what we are doing and, if they do, we will support them in how they legislate. Given the sensitivities, we thought that, where justice is devolved, the devolved Administrations should make the decision. I again commit to making sure that we work across the piece, wherever we can, to deliver the consistent compensation that she requires, without forgetting that the redress schemes are UK-wide. As soon as people’s convictions are overturned, they will be able to access compensation, just as they can in England and Wales.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  37. I thank the hon. Lady again for all her work in this area. She has been a tireless campaigner. We would all like to be further along, but she has made an important contribution to our work. The hon. Lady is right to say that victims should be front and centre when it comes to compensation, which must be delivered fairly and as quickly as possible. Some of the changes I have announced today, including in my statement, have been brought forward on the basis of feedback from victims and their legal representatives. We are listening to them, and we will make sure that we deliver any changes where we can. I fully understand the hon. Lady’s point about Scotland and Northern Ireland, and she will understand the constitutional sensitivity of this area.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  38. We foresee these records being marked in a similar way—“Quashed by Parliament” or something along those lines. Again, I am happy to engage with my hon. Friend to make sure we get it right.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  39. I thank my hon. Friend for his question and all his work on this subject. Our engagement with him throughout the process has been very important. He has much expertise in this area. We agree that this is unprecedented and undesirable, but we believe it is the least worst option. We want to see this delivered more quickly as, of the 790 or so sub-postmasters whom we believe this legislation will affect, only around 100 convictions have so far been overturned. We think that situation is untenable, which is why we decided to take this route. Of course, I will continue to work with him and listen to his wise advice. I think I am right in saying that, for convictions overturned by the Court of Appeal, the record is marked “Overturned by the Court of Appeal”.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  40. There are three things that we have to get right in delivering compensation: we have to be fair to the individuals and families affected; we have to be fair to all the other sub-postmasters to make sure there is consistency across the scheme; and, of course, we have to be fair to the taxpayer. There is no cap on what we will pay people, as long as it is fair.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  41. Thus far, 128 of the 490 claims have been submitted to the GLO scheme, and 110 of them have been settled. To my knowledge, only one claim has gone to independent dispute resolution before going to the independent panel, which hopefully indicates that, generally, the offers are fair and have been accepted almost straightaway. I understand what Jo Hamilton says, and I met her to discuss some of the processes she had to go through to prove her claim. We are determined to reduce those frictions and evidence requirements, certainly for things that are not essentially material.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  42. We will certainly look at the Committee’s recommendations on whether we should bring those cases back in-house or leave them with the Post Office. We will keep an open mind on that. We already have fixed timescales to respond to offers or service level agreements in the GLO scheme. We commit to responding to 90% of full claims within 40 days of submission. I am happy to look at how we might put some benchmarks in place to make sure the new scheme has a similar speed of response. I am sure the right hon. Gentleman heard what I said about our new pilots under which lawyers can submit claims without forensic accountants and medical reports. That may do something along the line he says, and I will happily have an ongoing conversation with him.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  43. I thank the right hon. Gentleman for his comments and collaboration. It is important that we listen to his Committee’s recommendations and its very informative evidence sessions—I sat through all five hours. At this point, we believe the Post Office should continue its work on the 100 or so cases before it. We currently have no capacity in the Department to handle those claims, although we clearly will by the time the Bill comes into effect. We do not want to pause between the Bill coming into effect in July and compensation payments being made. We think we can get those payments to people in August using that route. There may be some people left in the first tranche of overturned convictions, for people who have been through the Court of Appeal.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  44. I thank my hon. Friend for his regular contributions in this area, as it is always good to have the views of the only former serving postmaster in this House. We are looking to try to identify the figure he refers to and we hope to come back to him at some point; it is complicated, as a lot of these records go back a long way. However, that is a body of work we are undertaking with the Post Office. The Secretary of State had a conversation yesterday with the global chief executive of Fujitsu; we are keen to make sure that Fujitsu contributes and it has already said that it will—it said it has a moral responsibility to contribute. My hon. Friend mentions a figure of £1 billion, but we do not know the final figure for compensation. However, we would expect a significant element of it to come from Fujitsu.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  45. The figure the right hon. Gentleman uses and the document he references, which I was unaware he had, are interesting. Me being me, I had not read that line, although my previous comments might indicate that I had because I mentioned that exact figure. I am not afraid to be transparent or accountable for any of the delivery of these compensation schemes.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  46. I thank my right hon. Friend for his question and can absolutely give him the assurance he seeks. A fixed-sum award is only one route; it is not right for everybody. Some people have higher levels of claims, and we will support them where we can. In my remarks, I announced new measures we are using to do that, including a pilot scheme where expert reports are not required. That should significantly abbreviate the timescale between being able to submit a claim and getting a response. As for expediting in this area, in the GLO scheme we set a target that in 90% of cases we would respond to a final claim within 40 days. Currently, we are on 87% against that measure, so we are delivering this more quickly. He makes an interesting point about a named claim manager or something along those lines, and, if I may, I will take that away with me.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  47. I have not seen the letter the hon. Gentleman mentions yet, but I look forward to it and I understand his points about the Post Office handling claims. I am responding personally to every letter I get on this matter from colleagues; we always do that, but I am doing so even more on this occasion. I am sorry to hear about his constituent and the situation she is in. If she has accepted less than £75,000, she will get an automatic uplift to £75,000. We are determined to ensure that, across every scheme, people are treated fairly and feel that they are being treated fairly, and I am keen to look at the hon. Gentleman’s letter and make sure that is the case for his constituent.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  48. Again, I thank my hon. Friend for her work on this, and I absolutely thank Mr Evans. We are here now because the victims of this scandal are supporting each other, led of course by Alan Bates. So I welcome Mr Evans’s work, and if I can assist him or his group at all to make sure that they get compensated fairly, whatever their circumstance within these schemes, I am happy to do that.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  49. I thank the hon. Gentleman for his kind words and for representing his constituent so effectively. I hope that what we have announced today will be absolutely the right route for his constituent, as it means he would not have to go through what can be a complex process of submitting a detailed claim; he can simply opt for the £75,000 fixed-sum award and walk away. There is no claim form to be filled in—a simple letter needs to be signed and that is it. If he feels he should be compensated for more than that, he can go through the Horizon shortfall scheme. That takes a little longer, but he will still end up with compensation both for the financial impact and the impact on his health. I am happy to help, wherever I can, with his case.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD

  50. I thank the hon. Gentleman for all his contributions, and for representing his constituents, and others in Northern Ireland, who have been affected by the scandal. I understand his point and am very sympathetic to it. We took a very difficult decision. Clearly, we are happy to work with the authorities in Northern Ireland. As I said in the statement, I have spoken to my counterpart in Northern Ireland. We are today introducing a 10-clause, 10-page Bill, and we hope we have put together a relatively straightforward piece of legislation. We are happy to lend our support so that Northern Ireland is able to do the same as we are doing, if that is the choice that is made. As he has outlined, that is the political consensus in Northern Ireland, which I welcome.

    POST OFFICE LEGISLATION · 2024-03-13 · READ IN HANSARD