£1bn of taxpayer money set aside for Post Office scandal compensation

Rishi Sunak, the Prime Minister, addresses the House of Commons during PMQs yesterday
Rishi Sunak, the Prime Minister, addresses the House of Commons during PMQs yesterday - Jessica Taylor /UK Parliament
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Ministers have set aside more than £1billion of taxpayers’ money to pay for Post Office scandal compensation.

Downing Street confirmed the figure today and said it would ensure wrongly convicted subpostmasters are “compensated fairly”.

The Prime Minister’s official spokesman said: “The Department [for Business and Trade] has committed just over £1billion to ensure postmasters are compensated fairly.”

Rishi Sunak yesterday announced plans for a new law to exonerate subpostmasters caught up in the Horizon IT scandal.

Those whose convictions are quashed are eligible for a £600,000 compensation payment, or potentially more if they go through a process of having their claim individually assessed.

Between 1999 and 2015, more than 700 subpostmasters were prosecuted after faulty accounting software made it look like money was missing from their sites.

You can follow the latest updates below and join the conversation in the comments section here


04:00 PM GMT

That is all for today...

Thank you for joining me for today’s politics live blog.

I will be back tomorrow morning.


03:38 PM GMT

Starmer 'deeply saddened' by Sir Tony Lloyd news

Sir Keir Starmer has said that he was “deeply saddened” by the news that Labour MP Sir Tony Lloyd is now suffering from an “untreatable” form of leukaemia (see the post below at 14.58).

In a statement, he said: “I am deeply saddened by the update today from Sir Tony Lloyd on his illness. I know that sadness will be shared across the Labour Party and beyond.

“Tony has spent 40 years of his life in public service in many different roles. That lifelong sense of duty has seen him work tirelessly for local communities as an MP, ensure people‘s safety as Police and Crime Commissioner in Manchester, and build stronger relationships across the country and around the world as a government minister and in the shadow cabinet.

“Tony’s election as chair of the Parliamentary Labour Party in 2006 showed the esteem in which he is held by colleagues. He is renowned for his kindness, his sense of fairness, his commitment to his principles and his thoughtfulness.

“Tony is admired and respected throughout the Labour Party, and we are indebted to him for his lifetime of service. Our thoughts are with him and his family at this time.”


03:18 PM GMT

XL bullies to be banned in Scotland after influx of dogs being taken north of border

XL bully dogs are to be banned in Scotland after an influx of the dogs being taken north of border.

Humza Yousaf, the First Minister, confirmed that the Scottish Government will replicate the Dangerous Dogs Act banning the breed for those without a licence amid fears the country was becoming a “dumping ground” for the animals.

The move follows new regulations that have come into force in England and Wales following a spate of attacks in which people have died or been injured by the breed.

You can read the full story here.


02:58 PM GMT

Veteran Labour MP suffering from ‘untreatable’ leukaemia

Veteran Labour MP Sir Tony Lloyd, who has been receiving treatment for blood cancer, has said that it has transformed into an “untreatable” form of leukaemia

In a statement, the Rochdale MP said: “I have been receiving treatment for some time for a form of blood cancer which has been controlled by chemotherapy. Unfortunately this has now transformed into an aggressive and untreatable form of leukaemia and I will be leaving hospital today to spend the time I have left with my family.

“I ask for privacy for both myself and my family at this time. My office will remain open to continue to support my constituents.”


02:41 PM GMT

Date for Wellingborough by-election set

The date for the Wellingborough by-election has been formally set for February 15.

North Northamptonshire Council confirmed the date.

A second by-election in the constituency of Kingswood in South Gloucestershire is expected to take place on the same day.


02:19 PM GMT

MPs to vote on North Sea oil plans later this month

MPs are expected to begin scrutiny of measures designed to maximise North Sea oil and gas production on January 22, Penny Mordaunt said.

The Commons leader said the Offshore Petroleum Licensing Bill is provisionally expected to have its second reading that Monday, after MPs ran out of time to debate it on their first day back after the Christmas recess.


02:02 PM GMT

Rwanda Bill amendments backed by more than 40 Tory MPs

The number of Tory MPs backing amendments designed to strengthen Rishi Sunak’s Rwanda Bill continues to rise.

A number of amendments now have the backing of more than 40 Tory MPs, with signatories including Suella Braverman, Sir Iain Duncan Smith and Sir Jacob Rees-Mogg.

The amendments aim to limit virtually all legal challenges by migrants against their deportation to Rwanda and block any attempt by Strasbourg judges to halt the flights.

The Bill will return to the Commons on Tuesday and Wednesday next week.


01:35 PM GMT

Sunak: NHS waiting lists still 'far too high'

NHS waiting lists are still “far too high”, Downing Street said.

But No 10 said today’s statistics (see the post below at 11.31) showed what can be achieved when the health service is not disrupted by strike action.

The Prime Minister’s official spokesman said: “Waiting lists are still far too high. They must come down further.

“What we have seen from the statistics published today, that November, the first month without industrial action for over a year, saw the waiting list decrease by more than 95,000.

“That is the biggest decrease since December 2010… so that is an illustration, I think, of the progress NHS staff can make when they don’t have to contend with industrial action.”


01:12 PM GMT

No10: Any Rwanda Bill amendments must come with ‘respectable legal argument’

Any potential amendments to the Rwanda Bill must be underpinned by a “respectable legal argument”, Downing Street said.

No 10 was asked if Rishi Sunak wanted his Bill to make it through the House of Commons unamended or if he was open to making changes.

The Prime Minister’s official spokesman said: “When it comes to amendments, as I said yesterday, we will be carefully considering those amendments that are being put forward.

“Obviously we don’t know which will be selected. We need a Bill which has a respectable legal argument and one which does not collapse the scheme.

“That is the best way to get flights off the ground quickly so we will continue to talk to parliamentarians and consider amendments on that basis.”


12:48 PM GMT

Just over £1bn committed by Government for Post Office scandal compensation

Just over £1billion of taxpayers’ money has been committed by the Department for Business and Trade to pay for Post Office scandal compensation.

The Prime Minister’s official spokesman told reporters today: “The department has committed just over £1billion to ensure postmasters are compensated fairly.”


12:37 PM GMT

No10 'fully intends' to make Fujitsu pay for Post Office scandal if firm is found culpable

Downing Street said it “fully intends” to make Fujitsu pay for the Post Office scandal if the firm is found culpable.

Pressure is mounting on the company behind the faulty Horizon software and No 10 said it will wait for the conclusion of an ongoing statutory inquiry before deciding on its next steps.

Asked about the prospect of clawing back money from the Post Office, Post Office bosses’ bonuses or Fujitsu, the Prime Minister’s official spokesman said: “You heard ministers talk about this both in terms of questions about individuals receiving bonuses or companies who were involved in this.

“There is the inquiry underway that is seeking to establish the facts on that point in terms of culpability. I think for our part all we can say at the moment is that we will use the facts established by the inquiry to hold those individuals and businesses, should they be found culpable, to account.”

Asked what was meant by holding to account, the spokesman said: “Whether it be financially, legally or otherwise. But I can’t pre-judge the work that is literally going on right now in the inquiry to establish the facts.”

The spokesman said they did not want to “cut across” the inquiry but added: “But as I say, we fully intend, should culpability be found with individuals or businesses, to hold them to account.”

Between 1999 and 2015, more than 700 postmasters were prosecuted after faulty accounting software made it look like money was missing from their sites. The Government yesterday announced a plan to quash all of the convictions.


12:31 PM GMT

Truss: Rwanda Bill must be made ‘watertight’

Liz Truss said the Rwanda Bill must be made “watertight” as she confirmed she will back amendments to the legislation.

The former prime minister tweeted this morning: “We need to crack down on illegal migration and remove the loopholes being exploited by activist lawyers. It’s essential the legislation we are passing is watertight. That’s why I am backing amendments to the Bill.”

The Telegraph revealed last night that Ms Truss was joining Tory rebels in demanding Rishi Sunak toughen up the Bill.


12:01 PM GMT

Pictured: Starmer and Streeting visit Alder Hey Children's Hospital in Liverpool

Sir Keir Starmer and Wes Streeting are pictured today during a visit to Alder Hey Children's Hospital in Liverpool
Sir Keir Starmer and Wes Streeting are pictured today during a visit to Alder Hey Children's Hospital in Liverpool - Peter Byrne /PA

11:46 AM GMT

Health Secretary welcomes ‘biggest decrease’ in NHS waiting list since 2010

Victoria Atkins, the Health and Social Care Secretary, said the latest NHS waiting list statistics showed what progress can be made when the health service is not disrupted by strike action.

She said: “November was the first month without industrial action for over a year and we reduced the total waiting list by more than 95,000– the biggest decrease since December 2010, outside of the pandemic.

“This shows the progress our fantastic NHS staff can make towards bringing waiting lists down when they don’t have to contend with industrial action.

“We want to put an end to damaging strikes once and for all, and if the BMA Junior Doctors Committee can demonstrate they have reasonable expectations, I will still sit down with them.”


11:31 AM GMT

NHS waiting list falls for second month in a row

The waiting list for routine hospital treatment in England has fallen for the second month in a row, official figures published this morning have shown.

An estimated 7.61 million treatments were waiting to be carried out at the end of November, relating to 6.39 million patients, down from 7.71 million treatments and 6.44 million patients at the end of October, NHS England said.


11:13 AM GMT

Lib Dems on double by-election: Voters ‘crying out’ for end to Tory ‘chaos’

The Liberal Democrats said voters are “crying out for a general election and an end to this chaos” under the Conservatives as they responded to the double by-election news (see the post below at 09.44).

Daisy Cooper, the Lib Dem deputy leader, said: “Their majority is being whittled away with by-election after by-election as voters are given the opportunity to send a message to out of touch Rishi Sunak.”


10:59 AM GMT

Labour does not mind ‘nanny state’ criticism, suggests Streeting

Wes Streeting, the shadow health secretary, suggested he was not bothered by critics labelling Labour’s child reforms as the “nanny state”.

Labour has promised breakfast clubs for every primary school, supervised toothbrushing, a 9pm watershed for junk food adverts and a ban on vape adverts aimed at children.

Defending the plans this morning, Mr Streeting told the BBC Radio 4 Today programme: “If the choice is between sort of saying ‘well, it’s terrible these parents don’t brush their kids’ teeth but that’s just not the job of government to worry about despite the fact that kids are losing their teeth and the NHS is losing money to hospital admissions, we are just going to sit back and watch’. Well, that is not the Labour way.”

Asked if he minded the “nanny state” label, Mr Streeting said: “I think there is going to be worse name calling than this in the run up to the general election and if the Conservatives think they are going to win by slinging mud and people will forget 14 years of misery, failure and grotesque incompetence, they have got another thing coming.

“That is the fight we are up for.”


10:40 AM GMT

Coutinho rejects net zero criticism from Skidmore

Claire Coutinho has challenged her former Tory colleague Chris Skidmore after he quit the Commons in protest at the Government’s North Sea oil drilling plans.

The Energy Security and Net Zero Secretary told Times Radio: “I completely reject his characterisation of our work, we’re going to be the first country in the G20 to halve our emissions since 1990.

“Secondly I wish him well in his next job but he’s made it very clear that his only concern is net zero, I actually have to look at the energy security of the country, making sure energy is affordable for people as well as looking at an energy transition and I believe we’re in the right place.”

Asked if she believes Mr Skidmore is going to take a role in the green lobbying industry, she said: “I’m sure we’ll find out in due course.”


10:12 AM GMT

Fujitsu will be made to pay for Post Office scandal if found culpable, suggests minister

Fujitsu will be made to pay for the Post Office Horizon IT scandal if it is found culpable, a Cabinet minister said.

Pressure is mounting on the firm behind the faulty Horizon software and Claire Coutinho said that after a statutory inquiry concludes the Government will “make sure that whoever is at fault, pays”.

Asked if she was concerned that Fujitsu was still involved in other Government contracts despite the scandal, the Energy Security and Net Zero Secretary told ITV’s Good Morning Britain programme: “I want to understand who is at fault and then make sure that whoever is at fault, pays.”

She added: “We started an independent inquiry to establish the facts. That will report, my understanding is, later this year. Once we have those facts absolutely, whoever has contributed to the problem should pay.

“But I do think if you look at what has happened in this scandal it shows that it is really important that we go through that process of establishing what the facts are, get the evidence in place, before we act.”

Between 1999 and 2015, more than 700 postmasters were prosecuted after faulty accounting software made it look like money was missing from their sites. Fewer than 100 convictions have been overturned to date.


09:44 AM GMT

Two by-elections likely to take place on February 15

The Government has triggered the by-elections to replace Peter Bone and Chris Skidmore.

Business in the House of Commons this morning started with Government chief whip Simon Hart issuing the writs for the vacant seats of Wellingborough and Kingswood.

By-elections have to take place between 21 and 27 working days from the issuing of the writ.

That would point to the by-elections taking place on February 15.


09:41 AM GMT

Post Office culture has not improved since Horizon scandal, suggests ex-Tory MP

Former Conservative MP Lord Arbuthnot said he does not believe the culture at the Post Office has improved in the wake of the Horizon scandal.

The peer, who previously led an MPs’ campaign in support of subpostmasters affected by the Post Office scandal, told BBC Radio 4’s Today programme: “I don’t have a sense that that culture has improved.

“I think they are chastened. I think they are becoming as ashamed as they really should be.

“But those investigators were not actually investigating. They were just trying to recover money.

“When people called in the investigators for help, because the Horizon system was going so very badly wrong, they got no help, they were just told ‘where did you take the money? Where did you put it? Give us the money’, and the post offices were often closed down. It was a shocking story, really horrible.”


09:27 AM GMT

Horizon compensation advisory board chair ‘delighted’ by Post Office law

The chair of the independent Horizon compensation advisory board has welcomed the news that hundreds of subpostmasters in England and Wales could have their names cleared by the end of the year under blanket legislation.

Professor Chris Hodges told BBC Radio 4’s Today Programme: “What we are trying to do is to deliver justice quickly to people.

“The problem about delivering compensation to those who have been convicted is that the appeals system in relation to getting their convictions overturned is either taking a very long time, or may never work at all.

“I had written to the Lord Chancellor in December to say this is a real problem, the system is not working, that it may never work for these people. It will certainly take years. So I am delighted, as are my colleagues on the advisory board.”


09:15 AM GMT

Rwanda Bill risks becoming nothing more than 'parliamentary wallpaper'

Rishi Sunak must accept amendments to strengthen his flagship Rwanda Bill or risk the legislation becoming nothing more than “parliamentary wallpaper”, Sir Jacob Rees-Mogg said.

The former Cabinet minister is among a large group of Tory MPs on the right of the party who are seeking to amend the Bill to toughen it up when it returns to the Commons on Tuesday and Wednesday next week.

They want to narrow the circumstances in which individuals could legally challenge being sent to Rwanda, arguing such a move is necessary to prevent the policy being bogged down in the courts.

Sir Jacob told GB News: “In order to make sure this Bill works properly and quickly the Government must adopt these amendments, otherwise it will be parliamentary wallpaper.

“It will serve the will of the British people to do it properly but the Government needs to make good on its policy to stop the boats once and for all. It is afterall what the Prime Minister promised.”

Mr Sunak is facing a significant Tory split over the Bill, because while some Tory MPs want to strengthen it, others are adamant that they will not accept any move to toughen it up any further.


08:54 AM GMT

Sunak will look ‘hopeless’ if Rwanda Bill fails, says Sir Jacob Rees-Mogg

Sir Jacob Rees-Mogg warned Rishi Sunak he will look “hopeless” if the Government’s Rwanda Bill fails to result in migrant deportation flights finally taking off.

The former business secretary suggested the Government could not afford to fail on the issue again having seen previous efforts fall flat.

The senior Tory MP told GB News: “Passing an ineffective Bill would make the Government look hopeless. In many ways it would be better to do nothing than to fail again because this is actually the third go at trying to get people deported to Rwanda.”

Tory MPs on the right of the parliamentary Conservative Party are seeking to amend the legislation to toughen it up when it returns to the House of Commons next week.


08:37 AM GMT

Fujitsu could have to repay ‘fortune’ spent on Horizon scandal, suggests Chalk

Fujitsu should repay the “fortune” spent on the Post Office scandal if it is found culpable, the Justice Secretary suggested, as pressure mounts on the firm behind the faulty Horizon software.

If the statutory inquiry into the saga finds the “scale of the incompetence is as we might imagine”, the Government would want to “secure proper recompense on behalf of the taxpayer”, Alex Chalk said.

Mr Chalk said the Government would wait for the conclusions of the inquiry chaired by retired judge Sir Wyn Williams before it decides what action, if any, to take against the company.

“But bluntly, if the scale of the incompetence is as we might imagine, then we would want to secure proper recompense on behalf of the taxpayer,” the Cabinet minister told ITV’s Peston.

“It’s absolutely right that there should be justice across the piece, yes for the subpostmasters, which we’re talking about today, but frankly also for the taxpayer. This has cost and will cost a fortune.”

If Fujitsu is found to be at fault, it “should face the consequences”, Mr Chalk added, in a sign ministers could launch legal action against the Japanese company.


08:35 AM GMT

Minister admits risk of wrongful exonerations under new Post Office law

A Cabinet minister admitted there is a risk of subpostmasters being wrongfully exonerated and being granted compensation under the Government’s plan to quash all convictions relating to the Post Office scandal.

Claire Coutinho, the Energy Security and Net Zero Secretary, said the Government had to look at the “trade-offs” and that “overall” the mass exoneration was appropriate because of the number of innocent people who need justice.

Subpostmasters will have to sign a document saying they are innocent to get their £600,000 compensation, though any who are later found to have been guilty can be prosecuted for fraud.

Ms Coutinho was asked during an interview on Times Radio this morning if she was comfortable with the potential prospect of a small number of people who did actually commit crimes being cleared and handed compensation.

She said: “We have been very open that there is a risk that a small amount of people who did commit fraud might be wrongfully exonerated.

“But I think overall it is really important that we look at the trade-offs and see that there is a huge number of people who need to have justice and actually we have been open that there is a small risk there but actually we think that overall we need to get people justice as quickly as possible.”

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