Post Office set to sign £180m deal with Fujitsu to extend the life of Horizon system, report
Thorough testing of new in-house IT system is important before its full rollout, it says
The scandal-plagued Horizon IT system, blamed for wrongly prosecuting hundreds of Post Office workers, is expected to remain operational for another five years.
As reported by Computer Weekly, Post Office is set to sign a £180 million deal with Fujitsu, the system's developer, to continue its maintenance.
The faulty Horizon system was responsible for wrongly prosecuting over 900 sub-postmasters for financial discrepancies between 1999 and 2015. The software made it appear that money was missing from branches.
The repercussions were severe, with some individuals facing imprisonment, financial ruin, and, tragically, some even losing their lives.
The High Court ruled in 2019 that the software contained "bugs, errors, and defects," leading to wrongful prosecutions of sub-postmasters.
The Post Office had previously aimed to fully replace Horizon software with a new in-house system called New Branch IT (NBIT) by 2025. However, delays in developing NBIT have forced them to extend the deadline to 2030 and request an additional £1 billion in public funds from the Treasury.
A key factor in the delay is the underperformance of the NBIT. This has forced Post Office to seek a five-year extension with Fujitsu to keep Horizon operational beyond its original March 2025 end date.
NBIT is being developed internally by the Post Office, but its rollout is being conducted in partnership with several suppliers.
Fujitsu has indicated it is unwilling to continue supporting the outdated Horizon system without a guaranteed exit strategy from the Post Office.
The Post Office has said it is committed to delivering a robust new system but underscored the importance of thorough testing before a full rollout.
"Working in collaboration with postmasters, we are continuing to drive forward development and expand our pilots for the introduction of a new system that is fit for the future across our 11,500 branches," a Post Office spokesperson said.
"We are determined to get this right and with such a large network, careful planning and extensive testing are of overriding importance ahead of full roll-out."
NBIT, once operational, is expected to be significantly cheaper to run than Horizon, with annual costs estimated between £18 million and £25 million compared to the current £60 million to £70 million.
The news of the Post Office signing new £180 million deal with Fujitsu has been met with criticism.
Richard Trinder, who leads the victim advocacy group Voice of the Postmaster, expressed concern that the extended use of Horizon could deter potential buyers from acquiring Post Offices.
He also questioned the ethics of awarding a new contract to Fujitsu, suggesting the money would be better directed towards compensating victims.
Meanwhile, a large-scale police investigation into the scandal is underway. According to recent media reports, police forces are planning to deploy a team of 80 detectives, with resources comparable to a major murder investigation.
Another inquiry into the scandal anticipates issuing its report in 2025, followed by a year of police investigation. This means potential criminal trials will likely be further delayed.
However, there have been some positive developments. A bill is being finalised to clear the names of wrongly convicted sub-postmasters. This legislation will apply across England, Wales and Northern Ireland, erasing convictions for theft, fraud, and other related offences.
Scotland is expected to follow suit with similar legislation.