Post Office (Horizon System) Offences Act 2024

Policy background

Context

3. From 1996, the Post Office piloted new Horizon software in some of its branches. This software was introduced across the network of branches in 2000. The software had faults which meant that some postmasters’ accounts showed false shortfalls. The Post Office obliged postmasters to "repay" these false shortfalls. Some postmasters and others were suspended (generally without pay) and/or dismissed. Others were prosecuted for dishonesty offences (by the Post Office itself or by the Crown Prosecution Service (CPS)); some were convicted and imprisoned. Some were made bankrupt (in some cases on the petition of the Post Office: there are allegations that this was done maliciously). Some lost their homes. Some suffered mental or physical health problems as a result of their treatment or of the financial consequences. Some were harried as thieves by their local communities. Some suffered breakdowns in relationships with their partners, children or other families and friends. Several died by suicide.
4. Following various failed attempts to expose the scandal, in 2016 a group of 555 people (mostly postmasters (individuals or companies) but also some managers, post office staff and employees of postmasters) took the Post Office to the High Court in a case managed pursuant to a Group Litigation Order made in March 2017. This legal action culminated in two major judgments (on Common Issues 1 and Horizon Issues 2 ) which were very critical of the Post Office’s software, its contracts with postmasters and its general behaviour.
5. The Government subsequently announced the launch of a judicial inquiry into the scandal, which was upgraded to a statutory inquiry in June 2021. This is being chaired by Sir Wyn Williams. The Inquiry’s scope is defined by the Terms of Reference 3 set by the Secretary of State. Within that, the Inquiry has published a List of Issues 4 on which it is focusing.
6. In April 2021 the Court of Appeal in England and Wales overturned 5 the convictions of 39 postmasters whose cases had been referred by the Criminal Cases Review Commission (CCRC). Further convictions have since been overturned.
7. The scandal has had profound impacts on those affected by it. The Horizon Compensation Advisory Board has produced a paper 6 describing some of these impacts. A number of the cases are over 20 years old, with some of the victims having passed away. Many others are in declining health or have lost faith in the system and do not wish to engage further with it. Currently, some cases are being reviewed on an individual basis by the Court of Appeal. This relies on postmasters choosing to lodge an appeal, which we know many will not want to do given their lack of trust in the system. It also relies on there being sufficient evidence that the conviction is unsafe and in many cases that evidence no longer exists. Continuing in this way therefore would not achieve the objective of ensuring all wrongful convictions are quashed.
8. On 10 January 2024, the Prime Minister announced that the Government would introduce new primary legislation to make sure that those convicted as a result of the Horizon scandal, widely described as the biggest miscarriage of justice in our history, have their convictions swiftly quashed and can be compensated. This Act gives effect to that commitment.
9. Under the Overturned Convictions scheme anyone who was wrongfully convicted as a result of Horizon evidence is eligible to receive compensation of at least £600,000, but only once their conviction has been overturned. This means that many postmasters and others who were wrongfully convicted but have not appealed through the courts are unable to access the compensation that they deserve. The Act will remove this barrier to access for those who are entitled to financial redress.

Outline of the Act

10. Section 1 provides that convictions for "relevant offences" were quashed when the Act came into force, provided that the convictions:
    • were made in England, Wales, or Northern Ireland;
    • were prosecuted by the Post Office, CPS, Police Service of Northern Ireland, the Director of Public Prosecutions for Northern Ireland or the Public Prosecution Service for Northern Ireland;
    • have not been considered by the Court of Appeal in England, Wales, or Northern Ireland; and
    • took place before the Act came into force.

11. Section 2 defines what is meant by "relevant offence". It sets out five conditions that must be met for the conviction to be quashed by the Act:
    • Condition A - the offence must have been committed between 23 September 1996 and 31 December 2018, covering the period of the Horizon scandal, including the Horizon pilot.
    • Condition B – the offence was false accounting, fraud, handling stolen goods, money laundering, theft, or an ancillary offence.
    • Condition C - at the time the offence occurred, the convicted person was carrying on a post office business or working for the purposes of such a business.
    • Condition D – the person was alleged to have committed the offence in connection with carrying on or working for the purposes of that post office business.
    • Condition E – either the Horizon system was being used for the purposes of that post office business at the time of the alleged offence, or the offence was alleged to have been committed over a period of time and the Horizon system was being used for the purposes of the post office business for all or part of that period.

12. Section 3 provides for how to determine when a conviction has been considered by the Court of Appeal. It specifies that where permission to appeal has been refused in respect of a conviction or where an appeal has been dismissed, it will not be quashed. Nothing in the Act prevents a further appeal against a conviction that has been considered by the Court of Appeal.
13. Section 4 explains the process for identifying those convictions quashed by the Act, amending the records of those convictions and notifying relevant individuals. The convicting court must update records of a relevant conviction to record that the conviction was quashed by this Act.
14. Section 5 sets out a process for deletion of cautions for relevant offences in England and Wales from the official record, where the Secretary of State becomes aware of them. It also provides for notification of affected individuals.
15. Section 6 sets out a process for deletion of cautions for relevant offences in Northern Ireland from the official record, where the Department of Justice becomes aware of them. It also provides for notification of affected individuals.
16. Section 7 makes consequential provision.
17. Section 8 provides a power to the Secretary of State to make further consequential provision.
18. Section 9 provides a power to the Department of Justice to make further consequential provision for transferred Northern Ireland provision.
19. Section 10 includes definitions and clarifications to support interpretation of the Act.
20. Section 11 provides that the Act came into force on Royal Assent. It also sets out the territorial extent of the Act. The Act extends to England Wales and Northern Ireland only.
21. Section 12 establishes the Act’s short title.