I thank the noble Earl for attending today to discuss yesterday’s important Statement in the other place concerning compensation for victims of the Post Office’s Horizon IT system failings.

What took place after the installation of Horizon accounting software started in the late 1990s has been referred to as one of the greatest scandals of modern times. The installation of the accounting software led to recorded shortfalls in cash at many branches. The truth is that, instead of questioning whether the software was working accurately, the Post Office instead believed that the shortfalls were caused by postmasters themselves, leading to dismissals, recovery of losses from the individuals concerned and, of course, in some cases criminal prosecutions.

The lives of decent, honest postmasters were ripped apart, with some cases resulting in prison sentences but, for all, a long and difficult wait for years to get justice. The consequences for some of those victims are just too awful to contemplate. The wait for resolution of compensation claims has only added to the intolerable burden so many have had to face.

We can all be grateful for the work done by Ministers and civil servants to make progress on this important matter, and I acknowledge the commitment and dedication of Members in both Houses continuing to work with victims through the Justice for Subpostmasters Alliance to sort this mess out.

We agree that there is logic in the proposals for compensation outlined in the Statement and welcome the clarification given in yesterday’s Statement by the Minister, Kevin Hollinrake. He acknowledged that 86 convictions have been overturned and that over £21 million has been paid out in compensation. However, due to the complexity of some claims, especially for personal damages, progress on full and final settlements has been slow. The proposal outlined is to offer a fixed sum of £600,00 for those who received an overturned conviction. Can the noble Earl tell us what specific methodology was used to arrive at this figure? Will he commit to publishing it for the sake of transparency?

I also seek clarification on a few factors. First, how many people does the noble Earl anticipate will take up this offer? What assurances can he give that the compensation being offered to those 86 individuals whose convictions have been overturned will be made up to a sufficient level? What can he say in response to the point that, if people go through the full scheme, the compensation will be much higher? I would be grateful if he addressed what he thinks the balance is between the figure of £600,000 and what others might expect to get. Importantly, what is the estimated timescale for compensation completion for those he considers eligible and not yet fully compensated? Finally, can the noble Earl explain why it has taken so long for evidence from key stakeholders—the Post Office, the Government and Fujitsu—to be presented to the public inquiry?

The Post Office is a national institution, but its reputation has been severely damaged by this scandal. I finally ask: what steps are being taken to ensure that this can never happen again?