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Kevin Hollinrake MP
he Parliamentary Under Secretary of State
ek Department for Business and Trade
Old Admiralty Building
Department for Admiralty Place
* Whitehall
Business & Trade London
SW1A 2DY
Laura Trott MBE MP 23 February 2024
Chief Secretary to the Treasury
His Majesty’s Treasury
1 Horse Guards Road
London
SW1A 2HQ
Dear Laura,
In January 2024, the Prime Minister announced that the Government would legislate to
overturn all convictions in England and Wales which were based on Horizon evidence or
Post Office Limited’s egregious prosecutorial behaviours. These individuals would then
become eligible for compensation. This could mean an additional 881 claims for
compensation.
I am proposing that my department, the Department for Business and Trade, takes on
responsibility for setting up and delivering the scheme for compensating this new cohort of
claimants and not Post Office Limited.
I am therefore writing to you for HM Treasury cover for:
Additional civil service headcount on top of the requirement for the core Department
of between 35 and 50 FTE.
Additional budget for administrative costs and contracts. We are still developing the
model and firming up costs. We expect costs of at least £25m but they could be as
much as £57m. We would welcome confirmation of £25m of funding initially to be
provided at the Main Estimate with agreement that additional funding will be provided
in the Supplementary Estimate when costs have been confirmed.
This will support the full set up of the Horizon Compensation Unit within the department and
administration of compensation related to the Horizon scandal.
There are clear reasons why there is a strong case for the department delivering the
compensation. There is a high public level of distrust in Post Office Limited especially
amongst the affected postmasters. We have heard reports from claimants that re-engaging
with Post Office Limited to access compensation is re-traumatising.
We have also seen (as in the Horizon Shortfall Scheme) mistrust of Post Office Limited
leading to calls for existing schemes to be re-run by the Department for Business and Trade.
A Department for Business and Trade run compensation is the Horizon Compensation
Advisory Board's firm preference.
There is Ministerial, Parliamentary and public appetite to grip the compensation delivery in
terms of pace, control and admin/legal spend. The multiple governance layers associated
with a process that includes Post Office Limited, UK Government Investments and the
department, has been criticised for slowing delivery of compensation to victims.
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The Prime Minister has asked that the Bill which will deliver mass exoneration of those
convicted to be fast tracked into and through Parliament. This means we would expect it to
reach Royal Assent in June or July. Given the Government's unequivocal commitments on
this issue, I want us to be ready to deliver compensation immediately at this point to avoid
negative impacts on victims of the scandal on having to wait to access redress; any delay
would represent a significant reputational risk.
I am separately in discussion with the Advisory Board about their calls for my Department
to take on responsibility for the Horizon Shortfall Scheme and compensation for those
postmasters whose convictions have already been overtumed. This is not covered within
the request so we may need to return to you on this point after we have given the ideas
more detailed consideration, working with your officials.
I would therefore be grateful for a response as soon as possible.
Yours ever,
KEVIN HOLLINRAKE MP
Minister for Enterprise, Markets and Small Business