The chairman of the Post Office is being forced out of the role amid frustration in Whitehall over the state-owned company’s governance as it reels from the Horizon IT scandal.
Sky News has learnt that Henry Staunton, who only became chairman of the Post Office in December 2022 after a long career in FTSE boardrooms, was this weekend told by Kemi Badenoch, the business secretary, that he was to be replaced amid mounting tension with the government.
Sources said this weekend that Ms Badenoch had notified him of the decision in a telephone call on Saturday afternoon.
The hunt for a new chairman will come as the government tries to force through legislation that will more quickly compensate hundreds of sub-postmasters who were wrongly convicted over the faulty software which triggered Britain’s biggest miscarriage of justice.
One insider said there had been several sources of tension between the Post Office chairman and the government in recent months.
Among them, they said, was a row over the prospective appointment of a new senior independent director to replace Ben Tidswell, who is due to step down in the coming months.
Mr Staunton and a number of colleagues are said to have been keen for Andrew Darfoor, a former financial services executive who is one of the company’s existing non-executive directors, to take the position.
However, the government is understood to want to appoint a Whitehall insider to the role as it looks to strengthen the Post Office’s corporate governance.
Tensions also arose last year over the mistaken payment of bonuses to Nick Read, the chief executive, which were linked to its cooperation with the Horizon inquiry.
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Insiders said, however, that Mr Staunton’s exit was not directly related to the Horizon scandal itself.
Business and Trade Secretary Kemi Badenoch said: “The Post Office is rightfully under a heightened level of scrutiny at this time.
“With that in mind, I felt there was a need for new leadership, and we have parted ways with mutual consent.”
A government spokesperson said: “In a phone call earlier today, the secretary of state for business and trade and Henry Staunton, chair of Post Office Limited (POL), agreed to part ways by mutual consent.
“An interim will be appointed shortly and a recruitment process for a new chair will be launched in due course, in accordance with the Governance Code for Public Appointments.”
Mr Staunton could not be reached for comment on Saturday.
The government’s shareholding in Post Office Limited is managed by UK Government Investments (UKGI), which is also responsible for the public’s stakes in Channel 4, the Met Office and other state-owned companies.
The Post Office relies on government funding to operate, and has been struggling in recent years amid tougher competition across the sectors in which it operates.
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Former sub-postmaster exonerated
Mr Staunton previously chaired Phoenix Group, the insurance company, and WH Smith, the high street retailer.
His executive career included a stint at ITV, while he held other boardroom seats at companies such as BSkyB – which was the listed company that owns Sky News – and Ladbrokes.
The decision to replace him comes as the government tries to exert a firmer grip on the fallout from the Horizon crisis, with Rishi Sunak pledging new laws to “swiftly exonerate and compensate” those affected.
“People who worked hard to serve their communities had their lives and their reputations destroyed through absolutely no fault of their own,” the prime minister told MPs earlier this month.
“The victims must get justice and compensation. Sir Wyn Williams’ inquiry is undertaking crucial work to undo, to expose what went wrong, and we’ve paid almost £150m in compensation to over 2,500 victims.”
The eventual bill is expected to total in the region of £1.5bn, although more victims of the Horizon scandal have continued to come forward since the broadcasting of an ITV drama, Mr Bates vs the Post Office.
Sky News revealed earlier this month that Ms Badenoch was seeking urgent talks with Fujitsu to thrash out a compensation package for sub-postmasters affected by the scandal.
Ms Badenoch wrote to Takahito Tokita, the Japanese company’s chief executive, in the wake of an acknowledgement from Fujitsu bosses that it had a “moral obligation” to contribute to the compensation bill.
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“As you may know, my department is at the forefront of our government’s efforts to right the wrongs of the past,” Ms Badenoch wrote earlier this month.
“I am committed to ensuring that postmasters affected get the justice they deserve.
“This is why the UK government announced new legislation… to overturn wrongful convictions and a plan to ensure swifter access to compensation.”
The latest shake-up of the Post Office’s leadership comes in the same month that Paula Vennells, its former chief executive, surrendered her CBE after growing public and political pressure.
Kevin Hollinrake, the postal affairs minister, has said he would support prosecutions of those involved in the scandal and its cover-up.
Business and Trade Secretary Kemi Badenoch will appear on Sunday Morning with Trevor Phillips, which starts at 8.30am tomorrow.
Police have made 200 arrests in London after crowds turned out for a Palestine Action demonstration – despite the group being banned.
Organisers Defend Our Juries said up to 700 people were at the event in Parliament Square and claimed police were preparing for the “largest mass arrest in their history”.
The group said those arrested included former Guantanamo Bay detainee Moazzam Begg, NHS workers, quakers and a blind wheelchair user.
The Metropolitan Police said a “significant number of people” were seen “displaying placards expressing support for Palestine Action, which is a proscribed group”.
“We have now made 200 arrests in Parliament Square this afternoon,” the force wrote in a post on X.
In an earlier post, it wrote: “While many of those remaining in the square are media and onlookers, there are still people holding placards supporting Palestine Action. Officers are steadily working through the crowd making further arrests.”
Image: An aerial view of Parliament Square
Image: Protesters write on placards for the Lift the Ban campaign rally on Saturday. Pic: PA
Legislation to proscribe Palestine Action came into force on 5 July, making it a criminal offence to show support for the organisation, carrying a prison sentence of up to 14 years.
Defend Our Juries announced the protest would go ahead earlier this week despite the ban, following several other similar demonstrations since the proscription last month.
On Saturday, a spokesperson for the group said that “Palestine Action and people holding cardboard signs present no danger to the public at large”.
Image: A woman is dragged away by police officers after attending the Palestine Action protest in Parliament Square. Pic: PA
Three people have been charged as a result of illegal Palestine Action activity.
Jeremy Shippam, 71, of West Sussex, Judit Murray, also 71, of Surrey, and Fiona Maclean, 53, of Hackney in east London, will appear at Westminster Magistrates’ Court on 16 September.
Another march organised by the Palestine Coalition, which is a separate group, set off from Russell Square and assembled on Whitehall.
The Met Police said one person had been arrested there for showing a placard in support of the Palestine Action.
Image: A man is detained by police officers in Parliament Square. Pic: PA
Crowds had assembled in Parliament Square by 1pm, with people seen writing “I oppose genocide, I support Palestine Action” on placards.
Many remained silent while others sang pro-Palestine chants.
A Home Office spokesperson said in a previous statement: “The Home Secretary has been clear that the proscription of Palestine Action is not about Palestine, nor does it affect the freedom to protest on Palestinian rights.
“It only applies to the specific and narrow organisation whose activities do not reflect or represent the thousands of people across the country who continue to exercise their fundamental rights to protest on different issues.”
The ban faces a legal challenge in November after the High Court granted a full judicial review to Palestine Action co-founder Huda Ammori.
The Department for Work and Pensions will launch an independent review into its handling of prosecutions against Post Office staff, Sky News has learned.
About 100 prosecutions were carried out by the DWP between 2001 and 2006 during the Horizon IT scandal.
The “independent assurance review”, however, is yet to be commissioned and will not look at individual cases.
Hundreds of subpostmasters were wrongfully convicted of stealing by the Post Office between 1999 and 2015, due to the faulty Horizon IT system.
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What did we learn from the Post Office inquiry?
The DWP told Sky News they have “committed” to commissioning the review into prosecutions led by the department, where Post Office staff were investigated for “welfare-related fraud”.
They described cases as “complex investigations” which they said were “backed by evidence including filmed surveillance, stolen benefit books and witness statements”.
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They also added that “to date no documentation has been identified showing that Horizon data was essential to these prosecutions”.
The review will look at a period of time spanning 20 years covered by the Post Office (Horizon System) Offences Act 2024, from September 1996 to December 2018.
The Horizon Act was effectively blanket exoneration legislation which automatically quashed Post Office convictions but did not include DWP or Capture-related prosecutions.
Image: Roger Allen
The family of Roger Allen, who was convicted in 2004 of stealing pension payments by the DWP and sentenced to six months in prison, are “frustrated” the review won’t look at his or other cases.
Mr Allen died in March last year, still trying to clear his name.
Keren Simpson, his daughter, describes the review as a “development” but a “fob off”.
“I think it’s just getting us off their backs,” she said, “I’ll believe it when I see it because they’re not taking any accountability.
“They’re not acknowledging anything. They’re denying everything.
“No one’s saying, look, we really need to dig in and have a look at all these cases to see if there’s the same pattern here.”
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Mr Allen pleaded guilty to spare his wife – after his lawyer told him in a letter that there had been “an indication from the Crown that they may discontinue the proceedings against Mrs Allen were you minded to plead guilty”.
Despite the Criminal Cases Review Commission deciding Mr Allen had grounds to appeal against his conviction, it was upheld by the Court of Appeal in 2021.
The independent review will look at the “methodology and processes” used by the DWP, and the “thoroughness and adequacy” of efforts to obtain case documents.
The DWP say that the review won’t be commenting on individual cases or those that have been dismissed by the Court of Appeal.
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Potential reviewers will also be approached with experience “outside of the civil service”.
They will be asked to produce a report with recommendations for any further actions within six months of starting their review.
Lawyer Neil Hudgell, instructed by some of those prosecuted, described the review as “wholly inadequate”, saying the DWP “should not be marking its own homework.”
“Any involvement in the process of appointing reviewers undermines all confidence in the independence of the process,” he added.
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2:48
‘All we want is her name cleared’
He also criticised the DWP’s statement as “strikingly defensive and closed minded”.
“It cannot be anything approaching rigorous or robust without a proper case by case review of all affected cases, including those dismissed by the Court of Appeal.”
He said that where hundreds of convictions were quashed “at the stroke of a pen” a proper and “targeted” review is “the least these poor victims are owed.”
“At the moment there is a widespread feeling among the group that they have been “left behind and that is both legally and morally wrong.”
A Freedom of Information request to the Department of Work and Pensions by Sky News has also found that most cases they prosecuted involved encashment of stolen benefit payment order books.
In response to questions over how many prosecutions involved guilty pleas with no trial, the DWP said the information had been destroyed “in accordance with departmental records management practices” and in line with data protection.
A 15-year-old boy has been found guilty of the murder of Sheffield schoolboy Harvey Willgoose.
Harvey, also 15, was killed by a fellow student outside their school cafeteria in February this year.
His parents, Mark and Caroline Willgoose, have told Sky News that school knife crime is “a way of life for kids”.
The defendant, who cannot be named for legal reasons, had brought a 13cm hunting knife with him into All Saints Catholic High School, Sheffield, stabbing Harvey twice in the chest just a few minutes into the lunch break.
His defence told the court the defendant had “lost control”, stabbing Harvey after years of bullying and “an intense period of fear at school”.
Moments after stabbing Harvey, he told teachers, “you know I can’t control it” and “I’m not right in the head”.
Giving evidence, the boy told the court he had no recollection of the moment he killed Harvey, something the prosecution said was “a lie”.
They told the jury the schoolboy “wanted to show he was hard” and had become “obsessed” with weapons in the lead up to Harvey’s death, with photographs of him posing with knives found on his phone.
Chris Hartley, of the Crown Prosecution Service, expressed the organisation’s “huge sympathies” for Harvey’s family and friends.
“The CPS and South Yorkshire Police were able to prove that the defendant did not lose self-control but intended to deliberately attack 15-year-old Harvey,” he said in a statement after the verdict.
“We remind teenagers that there can be horrendous and serious consequences of carrying knives. It has been proven that if you carry these weapons, you are more likely to use them or be a victim of knife crime. You are putting yourself, other people and your future at risk. Please stop carrying knives and stop putting lives in danger.”
Image: Harvey Willgoose and his mother
Speaking to Sky News ahead of today’s verdict, Harvey’s mother, Caroline Willgoose, said she felt she had “led [her son] into the lion’s den”.
She said Harvey was a “school avoider” who had “anxiety” about going to school.
“We badgered Harvey into going to school but I don’t think people realise that there is a problem in all schools with knives,” says Mrs Willgoose.
“It’s a way of life now for kids, and it needs to stop.”
During the trial, it was revealed that the defendant had had previous violent outbursts at school, and, a few months before Harvey was stabbed, the school had called the police when the defendant’s mother contacted them to say she had found a weapon in her son’s bag at home.
Harvey’s parents told Sky News’ Katerina Vittozzi they feel that the school did not take previous knife-related incidents “seriously enough” and felt “100%” the outcome might have been different if they had.
The head of St Clare Catholic Multi Academy Trust – a group of schools including All Saints – also told Sky News Harvey’s death “was an unimaginable tragedy for all”.
Steve Davies said: “We think especially of Harvey’s family, loved ones and friends today. We cannot begin to imagine the immeasurable impact the loss of Harvey has had on them.
“Harvey was a much-loved, positive and outgoing pupil whose memory will be cherished by all who knew him. As a community, we have been devastated by his death, and we continue to think of him every day.”
He added: “Harvey’s death was an unimaginable tragedy for all, and one that understandably gives rise to a number of questions from his family and others.
“Now that the trial has finished, a number of investigations aimed at addressing and answering these questions will be able to proceed.
“We will engage fully and openly with them to help ensure every angle is considered and no key questions are left unresolved.”
Describing her son as “a character” who “never stopped smiling, never stopped singing”, Mrs Willgoose said she was now campaigning for “all schools and colleges” to use knife arches.
“I want people to go into schools and talk about the devastation of what knife crime does.”
In an emotional interview with Sky News’ Katerina Vittozzi, Mrs Willgoose said she felt her son was “put here for a reason” and “I can’t let go until I put things right for him”.
“There’s no winners when it comes to knife crime,” she said.
The defendant “has ruined his life, his parent have got an empty bed”, she added. “He’s got to live with this for the rest of his life.”
Harvey’s father, Mark Willgoose, said that his son had had “a short life, but a good life”.
“He crammed everything in, and you’ve just got to try and see the positives in that,” Mr Willgoose added.
“Whatever happens in court, it’ll never be justice. It’ll never be enough.
“I think we’ve just got to make sure Harvey’s death is not going to be in vain, and if whatever we do saves one life, then it’s been worth us doing it.”
This breaking news story is being updated and more details will be published shortly.