I welcome my hon. Friend’s statement, particularly the reference to the discussions with Fujitsu. The Horizon software is still being used by the post office network, and I understand that the contract with Fujitsu is worth about £2.4 billion over its lifetime.

We should not lose sight of the fact that Fujitsu was heavily involved in supporting the Post Office’s prosecution of innocent sub-postmasters. Can my hon. Friend say exactly how he will ensure that Fujitsu pays the appropriate amount of money to compensate for its role in this affair?

I recognise the concern across the House. My hon. Friend has followed this issue for a long time, and I recognise his continuing interest. He will forgive me if I do not give a running commentary to the House on the negotiations that we will have with Fujitsu.

We are obviously waiting for the conclusions of Sir Wyn Williams’ inquiry and his judgment about the level of responsibility that Fujitsu must accept. As I alluded to in my answer to the Opposition spokesman, an interim payment by Fujitsu would be a significant step forward.

I call the Liberal Democrat spokesperson.

Salford precinct’s busy Crown post office is a vital lifeline for residents and businesses alike, especially for those who collect their pensions and benefits in person.

Put simply, closing it in favour of a franchise would cause local economic and social devastation, especially if services are reduced and staff are let go.

It would also put that service at the whim of the franchisee, which, as we know from the recent case of WH Smith, causes great uncertainty and insecurity.

What is the Minister doing to guarantee that Salford retains all its existing post office services and staff in this geographical location, and what alternatives has he considered or will he consider in favour of shelving franchising?

I know that my hon. Friend has always been a great champion of Salford. Like other Members, she has made it very clear to me how significant the post office is in her community. The vast majority of post office branches across the country are already franchised.

Both main and local franchises are often open longer than directly managed branches. My hon. Friend asked what guarantees there are.

As I have set out, we have made it clear to the Post Office that we want every directly managed branch to ensure that there is a main franchised operation in those communities.

I recognise that there will be concern while that change takes place, but if she or any other Members have concerns about aspects of that transition as it moves forward in their constituencies, I will obviously be very happy to meet them to discuss those.

As a member of the Business and Trade Committee, I should remind the House that in March we recommended that the Government should listen harder to our recommendations.

I am glad that that seems to have been taken on board, but I am slightly concerned that a lot of back patting seems to be going on, particularly about Fujitsu. Does the Minister not agree with me that he should be telling Fujitsu what to do, not asking it?

This Government seem overly deferential to lawyers. He is in charge of this. Can he not get the pace moving, because lawyers are getting their money—their fees—but postmasters are not getting their money at the rate they should?

I thank the Minister for his statement and for all the work he is doing to redress the injustice of the Horizon scandal. Can he confirm that the Communication Workers Union, as well as the National Federation of SubPostmasters, has been involved in decision making?

I have lobbied him very hard about my post office in Cricklewood, so he will know that we want to and must maintain those services going forward.

I think a lot of the problems stem from the separation of the Royal Mail and the Post Office following privatisation, so would he consider discussing the possibility of a joint venture again?

I know from the conversations I have had with my hon. Friend just how much she and her constituents value the post office in Cricklewood. As I have set out, our starting point is that a mains franchise offering the same services as currently enjoyed by the residents of Cricklewood will be provided.

I hope her constituents will not see any significant disruption going forward, but I am very happy to have a conversation with her about that.

I have had many conversations since coming into this role with the leadership of the Communication Workers Union, who have been very direct in their views about directly managed branches.

On the question of their having a view and a say in the future of the Post Office, as I have made clear we are determined to publish a Green Paper, which will allow all those who are interested, including the CWU, to give us their vision of the future of the Post Office and view about the various questions about its future.

Does the Minister acknowledge that among the horrific impacts of the Horizon scandal is the massive brand damage to Post Office Ltd and its management among not only the sub-postmasters who are currently employed, but the potential workforce of the future?

Our communities in the lakes in Hawkshead, Staveley and Grasmere are currently without an operating post office and have lost those services.

Will the Minister give attention to and push Post Office Ltd to provide a package that not just encourages people to remain within the Post Office, but attracts new people, acknowledging that it will take more effort than normal to attract people into the sector?

On the issue of franchise services, our post office in Kendal shares space with the Royal Mail, and any change of site for our post office could threaten both. Is he cognisant of that, and will he do something about it?

I am very proud of the local campaign I have been involved in alongside councillors and residents to save Chester-le-Street post office. Although it is disappointing that we are losing the post office in its current form, I am relieved that the services have been saved.

I recognise that the market for traditional post office services has been in decline for some years.

Does the Minister share my disappointment that Post Office management did not have the commercial imagination to find new business streams utilising their brand and network of prominent high street locations?

I commend my hon. Friend for his campaign. I recognise just how much the Chester-le-Street post office is valued by his constituents, as he has made clear to me a number of times in his representations.

On the commercial future of the Post Office, it is absolutely true that postal services in this country—as indeed in a number of other countries—are facing significant pressures, and it is therefore imperative that Post Office management here in the UK look at what they can do to capitalise on new opportunities, particularly in terms of banking.

The Post Office chairman and chief executive, Nigel Railton and Neil Brocklehurst, completely get this point, and we are actively talking to them about what more we can do.

I very much hope we will hear positive news on banking framework 4, which I hope will be a significant step forward in this regard. However, there is more that can be done in this space.

Third-party litigation funding played a key and controversial role at the start of this crisis. Following recent Supreme Court judgments, that access to justice that postmasters had at the start is under threat.

What discussions is the Minister having with his colleagues about how third-party litigation funding worked in this situation and what needs to improve as it moves forward?

I thank the Minister for his statement and for the update on the redress scheme for victims of the Horizon scandal.

I also thank him for listening to my campaign to save the Kings Square post office in Gloucester and for maintaining so many vital services for Gloucester residents with today’s announcement that they will be franchised and continued.

Will he meet me to discuss the merits of the new franchise staying in its current location? Kings Square has a fantastic future, with the opening of the university’s new City campus later this year and the Forum, a new office, hotel and leisure facility, which will be fantastic.

It would be great for the new franchise to be an important part of that future.

I am grateful to my hon. Friend for his continued representation of his constituents’ interests.

He has made a number of very clear representations to me on the importance of the Gloucester post office, and I would be very happy to meet him to discuss its future as it transitions to a franchise-run operation.

I should make it clear that the Post Office very much wants these franchises to be in key locations that are important for our communities, because that is obviously where the commercial income will come from, so it will be keen to meet with stakeholders such as Members of this House and other local stakeholders.

If my hon. Friend would like to meet me to discuss this issue further, I would be very happy to do so.

Where a post office branch that is currently directly managed is not staying in its current premises, will there be a proper formal scheme of community engagement to give the community some control over ensuring that what is provided in its place will be at least as good?

Communities simply do not trust the Post Office at the moment to make that judgment for itself.

The right hon. Gentleman makes a completely fair point that the Post Office suffers from a significant lack of trust, for all the reasons we know.

I completely understand why he would want to press the particular point that his community should be involved in discussions about their post office services going forward. As I alluded to earlier, I would expect the Post Office to engage with local stakeholders, including the right hon.

Gentleman as the local Member of Parliament. If at any point he is concerned about those discussions, he is very welcome to get in contact with me, and I will happily meet him.

I recognise the significance that the two post offices have to my hon. Friend’s constituents, and I recognise, too, that there will be concern in her constituency about the long-term future of those post offices.

Although she is not the constituency Member of Parliament for the area, I will ensure that she is consulted about the future of those post offices.

I recognise that, particularly in urban areas such as the ones that she and I represent, people outside the immediate constituency are reliant on those post offices.

As I have said, a post office will want to ensure that, in the long term, it is located at the heart of the commercial activity in a community, because its future income depends on that.

However, given what has been said about the lack of trust in the Post Office, it is important that there are conversations with local stakeholders, including Members of this House.

Moreover, given the points that she has made, I will make sure she is included in conversations about those two particular post offices.

More than 4,000 residents have signed my cross-party petition opposing the closure of the Bexhill Crown branch.

It is fair to say that this whole situation has been made worse, because the Minister has allowed the Post Office to put the cart before the horse, with the decision taken on closures ahead of a clear guarantee on what will come next for all of our constituents.

I notice that in his answers, the Minister has talked about “should”, “expectations” and “starting points”, but those are not cast-iron guarantees.

Can he give a cast-iron guarantee that he will veto any replacement of the Crown service in Bexhill if it does not provide exactly the same services as the current branch is providing?

I recognise from the meetings that I had with the hon. Member and also with a Bexhill Labour councillor how strong the feeling is about the threat to the post office in Bexhill. I have made it clear that the Post Office should replace the directly managed branch with a mains franchise.

That is what I expect it to do. I also expect there to be a consultation with local stakeholders in Bexhill, including with him as the Member of Parliament. If he has concerns about that process, he is welcome to get in contact with me.

I thank the Minister for meeting me to discuss the directly managed branch on Kensington high street in my constituency of Kensington and Bayswater. More than 1,000 residents joined my campaign to save the services at the branch.

Today’s news is welcome for them, but can the Minister give us some reassurance on when the transition will take place from the current system to a franchise model, and what guarantees he has on continuing service levels?

Tony Hibberd, a former sub-postmaster from Colyton in east Devon, is 84 years old. Four years since he submitted his claim, and 14 years after his wrongful dismissal, there has still been no meaningful progress towards a fair and final settlement that reflects the loss to Tony’s reputation.

Following the statement from the Dispatch Box on 18 December, I wrote to the Minister about Tony’s case and the reply that I received referred to an offer made to Tony in December, but no such offer had been received.

The Minister refers to a new Horizon shortfall appeal scheme with a turnaround time of two months; but again, I say that Tony is 84 years old. Will the Minister urgently review Tony’s case to ensure that he finally receives the compensation that he deserves?

The hon. Member will understand that I do not have the details about Tony’s case to hand, but he has asked me to review the way that the case has been handled. I am happy to do that. I am keen that complex cases are resolved fairly and as quickly as possible.

I recognise that many sub-postmasters have been waiting a long time for compensation. We have made progress, but I recognise that there is more to do. I will happily look at Tony’s case after this and write to the hon. Member.

I thank the Minister for his update on the progress to redress the victims of the Horizon scandal as well as the commitment to invest in new technology.

In light of the sudden closure of a post office in Coalville in my constituency, what reassurance can the Minister give to current and prospective new postmasters that the Horizon system, which is still being used in post offices, is now fit for purpose?

We are clear that we need to replace the Horizon system. As the whole House would expect, the Post Office is not taking any criminal action when there are shortfalls. There are processes for resolving issues around shortfalls in the Horizon system.

Indeed, I referenced the postmaster panel and the way in which the Post Office management is working with sub-postmasters to help them to understand how shortfalls in the system are being dealt with going forward, so I hope that, slowly, we are taking the first steps to rebuild that trust.

I ask the hon. Lady to forgive me for not having the details of that particular case in front of me. As she has asked me to look again at that case, I will happily do so and write back to her.

I thank the Minister for his statement, and for giving me his time over these past few months to discuss the Morley directly managed branch with him. Over 3,300 people signed my petition to keep Morley post office open, so it is definitely welcome that the post office will be retained.

That is caveated by the fact that it will be a franchise, and there are questions about its location. I was also delighted to help secure a banking hub for our community, but the services provided by a banking hub do not overlap with those provided by a post office.

What guarantees can the Minister give my constituents that the new Morley post office will offer all the services that they enjoy from the current one?

I recognise that my hon. Friend has been campaigning hard to save Morley post office; he has certainly made clear representations to me about it.

The starting point for discussions about the future of postal services, in Morley as elsewhere, is that post offices will be replaced by a main post office offering Government services as well as traditional post office services.

If he has particular concerns about the way the transition is happening, he is welcome to get back in contact with me.

I thank the Minister for his answers and commitment to addressing these issues. The Post Office Horizon scheme was deeply flawed from the outset, and we cannot trust Horizon to provide evidence for postmasters or postmistresses when the entire scandal is based on Horizon’s unreliability.

Does the Minister not agree that we have no option other than to trust the people, not the computer, and that we must do the right thing by the people who have been vilified?

I absolutely pay tribute to the journalists and campaigners who exposed the Post Office scandal, and who continue to campaign for those who have not yet received redress.

I had the privilege of meeting a number of sub-postmasters who were very badly affected by the scandal, and those conversations will stay with me for a very long time, and I suspect that the same is true for other Members who have had similar conversations.

They are powerful, motivating conversations that will help this to get sorted out.

I recognise the point that my hon. Friend makes about Edinburgh. He will remember conversations we have had about the future of the post office, in which he made very clear to me the significance of a continued post office service for that community.

As I say, we will make sure that conversations take place between local stakeholders, including him as the constituency representative in this House and his Scottish Parliament colleagues representing his community. Colleagues in Wales such as my hon.

Friend the Member for Merthyr Tydfil and Aberdare (Gerald Jones) have made similar representations to me, and are also very concerned to make sure that they have conversations about the location of their post offices.

For some, the post office is a lifeline. I understand the changing role of the post office in this difficult and changing market, but given the closure of several banks on the high street of Cosham in my constituency, the recently proposed closure of the post office has caused huge concern.

First, I thank the Minister for constantly meeting me and listening to me. I also thank my constituents who shared and signed the petition, and who got in touch about the need to save our post office, for showing its value.

I am pleased to see that the Government and the Post Office have been listening to them. Today’s announcement of a franchise model will allow Cosham post office to remain open. What will the Minister and the Post Office do to ensure that local voices continue to be heard in the franchising process?

Can they ensure that Cosham post office retains all existing services and stays on the high street? Will he also continue to meet me to discuss this issue?

My hon. Friend makes a very good point about the number of bank branch closures. Over 9,500 bank branches closed under the Conservatives, who did next to nothing to ensure that they were replaced by any sort of alternative service.

The post office is often the last opportunity for people to access banking services on many high streets.

That is one of the reasons why we remain committed to having 11,500 post offices, and to the access criteria, which will help ensure that every community in the UK, including the people served by the Cosham post office, has access to post office services. I will of course continue to meet my hon.

Friend, if that is what she requires.

My hon. Friend has pushed me repeatedly on the future of the Leighton Buzzard post office. We are very clear that we want post offices to be located on or very close to high streets, so that they can best serve local people. I can give the commitment that my hon.

Friend will be consulted by the Post Office and other stakeholders in the Leighton Buzzard community about how it will operate going forward.

I call Dr Ben Coleman.

It is just Ben Coleman, Madam Deputy Speaker, but thank you for the honorific. I am very grateful to the Minister for his statement, and for the further measures he is taking to support the shamefully treated victims of the Horizon scandal.

I also thank him for saving our beloved post office on the King’s Road in Chelsea, after meeting me to discuss it. The news will be warmly welcomed by residents in Chelsea, 1,000 of whom signed the petition to save that post office.

Can I ask him to ensure that the King’s Road branch, when it is franchised, provides no less a service than it does now? Ideally, it would provide an even fuller service, if possible.

That is what happened to the franchise branch on the North End Road in Fulham, which I campaigned with residents to save, and which is now open seven days a week, from 7 in the morning till 9 in the evening.

My hon. Friend made clear to me the significance of the King’s Road post office to his constituents, and I am pleased that there will continue to be a post office service there.

I have experience of a directly managed post office closing and a franchise opening up—in this case, in a WHSmith—and afterwards the service was open for longer. I hope his constituents enjoy the same experience.

If he has particular concerns about the way services are to be delivered, I will happily meet him again.

I thank the Minister for his statement. I know that none of these issues are of his making, so I am grateful to him. Edinburgh South West and Edinburgh South share 18 victims of the Horizon scandal, and I am sure that they very much welcome what the Minister has said.

I want to talk about the directly managed branch in my constituency, in Wester Hailes. That is one of the most deprived parts of Scotland, so any loss in service there will be acutely felt.

I know from campaign work I have done, along with Councillor Stephen Jenkinson, that the post office is used by people well beyond Wester Hailes, so it is important that we take any threat to it really seriously.

The situation is made all the worse by the fact that the Bank of Scotland branch right across from it is closing next month. I am slightly concerned that what is described as a “new deal” for the Post Office might be a bad deal for Wester Hailes.

For it to be a good deal, the consultation has to be right. It has to be meaningful and tailored to the people of Wester Hailes. Can the Minister reassure us that this will be a meaningful consultation that will reach into Wester Hailes and understand the needs of the community?

I know from conversations I have had with my hon. Friend the significance of the post office to his community.

I very much hope that his experience, the experience of his community, and that of local stakeholders such as the councillor he has been working with, will be positive when the Post Office sits down with him and talks through the transition.

If he has concerns about how those conversations are going, I remain happy to meet him to discuss them.