In response to an Urgent Question in the House of Commons, James raised concerns that compensation schemes were not making adequate payments for the distress and inconvenience caused by the Post Office scandal.
Text of exchange
James Wild:
Will my hon. Friend take this opportunity to look at the Post Office’s reported practice, under the former chairman, of making payments of just £5,000 under the Horizon shortfall scheme for distress and inconvenience to people it falsely accused of theft, when a similar claim made at an employment tribunal, in the most exceptional cases, is 10 times that amount?
Kevin Hollinrake, Minister for Postal Affairs:
To be clear, those schemes are run independently of the Post Office. There are independent processes all the way through, and an independent panel assesses the loss. I think my hon. Friend is talking about the Horizon shortfall scheme, but it is clear that any tariffs that might go with payments are not a ceiling—they tend to be a floor. People should of course be fully compensated for both their financial and their non-pecuniary loss; that is a principle we have adhered to all the way through the process. We are looking at the recommendations of the advisory board on how to make sure people who have been through those schemes have received fair payments. In the group litigation order scheme, there will effectively be a minimum £75,000 fixed-sum award. We are keen to ensure not only that we get the money out of the door, but that that compensation is fair and seen to be fair.
