Badenoch blames civil servants for Horizon IT scandal compensation delays

The government let bureaucracy get in the way of redress for wronged sub postmasters, former business secretary Kemi Badenoch today (11) told the inquiry into the Post Office scandal.

The Tory leader said that during her time as business secretary, she and former postal affairs minister Kevin Hollinrake "wanted to get the money out there" but were constantly given reasons why they could not by officials.

During an appearance before the Horizon IT inquiry, Badenoch said, "We had briefings on the issue with officials, and it was quite clear to me that we were allowing bureaucracy to get in the way of redress too much of the time.

"Kevin (Hollinrake) and I wanted to get the money out there, and we were always given a reason why we couldn’t.

"I feel that there is often too much bureaucracy in the way of getting things done, because people are worried about the process. They are worried about: if things go wrong, they’ll be on the hook for that. So they carry out lots of checks and balances well beyond what I think is required in order to deliver the right outcome."

Questioned by counsel to the inquiry Jason Beer KC on who allowed bureaucracy to get in the way of redress, Badenoch replied: "Well, the government machine.

"I think I remember asking a question like- ‘Why can’t we just give them the money?"’

Badenoch, who was Business Secretary for 17 months, also told the inquiry that she was determined to speed up the whole process of compensation.

“What I was seeing, the way the Department [of Business and Trade] and the Post Office was going on we’d never get to the end of it. I had my own objective of making sure we did right by the sub-postmasters.”

Badenoch added that the Post Office would have “disappeared in its current form long ago” if it was a private organisation, adding that it is a “20th-century organisation that is struggling to evolve in a 21st-century world.”

Badenoch also stated that it was “extremely disappointing” that it took an ITV drama about the Post Office scandal to get the government to accelerate compensation for wrongly convicted postmasters.

“I was not expecting the documentary [Mr Bates vs the Post Office] in January, which helped speed things along. It suddenly turned it from a value-for-money question to a public perception question.”

The inquiry saw an exchange of letters between Badenoch and Chancellor Jeremy Hunt in August 2023 requesting the extension of interim payments for the Group Litigation Order (GLO) compensation. But he initially rejected the idea.

“If you look at it in the context of what’s happening in government," she told the inquiry. "There are a thousand things that are being asked, money requested for. After a while, it just becomes another line in a ledger."