TechGovernment Provides Financial Support to Post Office as Horizon Replacement Costs Soar

Government Provides Financial Support to Post Office as Horizon Replacement Costs Soar

Karl Flinders

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Published: 20 Dec 2023 16:45

Increasing costs and a lengthening timeline have forced the government to hand the Post Office an extra £103m towards its project to replace the controversial Horizon software used by thousands of subpostmasters. The Horizon system, from Fujitsu, is at the centre of what is regarded the widest miscarriage of justice in UK history when subpostmasters were blamed for unexplained accounting shortfalls, which it caused. In 2021, the Post Office extended its IT services contract with Fujitsu while it prepared to migrate from Horizon, and it’s currently working on a project to replace the system by 2025, with what is known as New Branch IT (NBIT). The department of business and trade said: “The costs associated with developing a fit-for-purpose replacement for the Horizon IT system have increased significantly. While this is a Post Office-led programme, it’s essential for the future of the company and the Government is therefore providing £103m to support the development of the replacement and to ensure the Horizon system is maintained before the replacement is rolled out.” A Post Office spokesperson said: “Transforming our technology is one of the three key priorities we are delivering for subpostmasters, and at our Postmaster Business Update on 21 November, our chief transformation officer provided an update on the Horizon replacement. This year at our two pilot branches, we’ve been testing basic mails transactions live on our New Branch IT. “In early 2024, the next pilot phase at these two branches will take place – adding core inland mails and back-office functionality to enable payment and cash counting. After we have rigorously tested and evaluated this pilot phase, this will be the version that we plan to roll out into the first Postmaster pilot branches later in 2024.” One subpostmaster said: “We don’t know much about this system, although it’s being road-tested with ‘selective subpostmasters’, we don’t know who they are. Yet again we are going to get a new system with little say whether it is going to be any good.”

New contract

He also asked when a new subpostmaster contract will be introduced, to prevent the same problems arising. Under the current contract, subpostmasters are responsible for all losses – even unexplained ones.

The Horizon contract with Fujitsu – and the retail and accounting system at its core – led to hundreds of subpostmasters being prosecuted for financial crimes, such as theft and false accounting, based on evidence from the IT system. In what has been called one of the biggest miscarriages of justice in UK history, more than 900 subpostmasters were prosecuted for crimes including theft and false accounting,

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