Financial Secretay (): As the House knows, the
Post Office Horizon IT scandal that began in the late 1990s has
had severe impacts on the lives of the postmasters affected.
Following the Prime Minister’s announcement on 10 January, the
Government has today introduced the Post Office (Horizon System)
Offences Bill. The Bill defines a clear set of criteria for those
convicted as a result of the Horizon scandal, and individuals in
scope will have their conviction quashed. This is to be followed
by swift financial redress delivered by the Department for
Business and Trade.
The Government also announced in January this year that it would
offer optional fixed sum payments of £75,000 to postmasters in
the Group Litigation Order. Today, the Government has announced
that it will extend this policy to the Horizon Shortfall Scheme
to ensure equal treatment across the schemes. Those who have
already settled their claim below £75,000 will be offered a
top-up to bring their total redress to this amount.
It is the Government’s priority to take swift action to ensure
affected postmasters receive full and fair financial redress with
little administrative burden. That is why the Government will
ensure that no income tax, capital gains tax, National Insurance
Contributions, corporation tax or inheritance tax is payable on
compensation to be paid to postmasters whose convictions are
overturned by the upcoming legislation or by those who benefit
from a £75,000 fixed sum payment on the Horizon Shortfall Scheme.
The Government will legislate via secondary legislation to exempt
these payments in due course.
