It is “completely incorrect” to say that ministers have been pushing to go slow on paying out compensation to subpostmasters, a senior civil servant has said.
Carl Creswell, director of business resilience at the Department of Business and Trade, said ministers and senior civil servants wanted to pay out money faster.
It came after former Post Office chairman Henry Staunton – who is giving evidence in Parliament later on Tuesday – claimed he had been told to delay payouts to subpostmasters affected by problems with the Horizon computer system.
It opened a row with Business Secretary Kemi Badenoch, who accused him of spreading “made-up anecdotes”.
Speaking to MPs on the Business and Trade Committee, Mr Creswell on Tuesday said that his conversations with former Department for Business, Energy and Industrial Strategy (BEIS) permanent secretary Sarah Munby had not been about slowing down payouts.
“You would have thought someone would have mentioned it to me if that were the intent. Not at all,” he said.
“I worked very closely with Sarah Munby, she and I worked with Treasury to secure the funding needed for the schemes.”
He added: “Every conversation I had with her, with ministers, with other senior civil servants in other parts of Government, have all been about how we can pay out this money more quickly, so, no, that is completely incorrect, that assertion.”
Current Post Office chief executive, Nick Read, and subpostmasters including Alan Bates will also answer questions during the hearing later on Tuesday.
The parliamentary select committee said the witnesses will update MPs on progress on redress to victims of the Post Office Horizon scandal.
The Horizon IT scandal saw more than 700 subpostmasters handed criminal convictions between 1999 and 2015 as Fujitsu’s faulty Horizon system made it appear as though money was missing at their branches.
Hundreds of subpostmasters are still awaiting compensation despite the Government announcing that those who have had convictions quashed are eligible for £600,000 payouts.
Mr Staunton, who will answer questions on Tuesday afternoon, stepped down from the Post Office amid ongoing tensions last month.
The former WH Smith executive has since been involved in a deepening row with Ms Badenoch after he claimed he had been told to delay payouts to the subpostmasters affected.
Ms Badenoch tolds MPs he had spread “made-up anecdotes” following his dismissal.
However, ministers are under pressure over allegations a senior civil servant told Mr Staunton not to focus on “long-term issues” and to protect his organisation’s finances.
Mr Staunton is said to have been told during a meeting with Sarah Munby to “hobble” into the next general election, according to notes reported by The Times newspaper.
Ms Badenoch then referred to the dispute last Thursday, tweeting: “It’s important that people have trust in all we’re doing to get them justice.
“It’s frustrating dealing with false allegations that break that trust, but we won’t be distracted.
“The law is expected to come into effect by the end of July and apply to convictions in England & Wales.”
On Tuesday, MPs will also hear from legal representatives from the Department of Business and Trade administering the group litigation order (GLO) scheme designed to compensate 555 subpostmasters, and lawyers for claimants of this and all other schemes, the Commons said.
