The Controversial Horizon IT System: Post Office Extends Troubling Contract Yet Again

The Post Office has made the decision to extend its controversial partnership with the Horizon IT system, managed by Fujitsu, for another year, at a cost of £41 million. This extension will allow the system, which has been embroiled in controversy and legal disputes, to remain operational until March 2027.

The Horizon system is notorious for incorrectly displaying financial discrepancies which led to the wrongful prosecution of over 900 sub-postmasters. These errors created a significant scandal that tarnished the Post Office’s reputation. Despite these issues, representatives for the Post Office stated their commitment to transitioning away from both Fujitsu and the Horizon system as swiftly as possible.

Plans are in place to secure a different supplier to manage Horizon while a new system is being developed. Post Office sources indicate that they aim to select a new supplier by July 2026; however, there are concerns that the contract with Fujitsu might be extended until 2028 as the transition takes place.

The original plan to develop an internal solution dubbed NBIT was abandoned due to escalating costs and complexity. Now, the Post Office is pivoting towards acquiring software solutions from external suppliers; the procurement process for this has already commenced.

A government spokesperson echoed the urgency of replacing Horizon, describing the need to provide postmasters with the necessary tools for effective service amidst a backdrop of past under-investment in technology. Meanwhile, Fujitsu executives have publicly acknowledged their accountability, conceding that Horizon was plagued with inherent bugs and errors from its inception. Yet, they have not defined a timeline for compensation or specific financial contributions to rectify the fallout from the scandal.