Post Office Horizon scandal victims have slammed Post Office for paying "£40 million" to extend its contract with Fujitsu to continue using the controversial Horizon IT software, as revealed in a recent report.
At least 900 subpostmasters and subpostmistresses were wrongly prosecuted for apparent financial shortfalls caused by faults in the accounting software, in what has been described as one of the UK’s biggest miscarriages of justice.
Despite that, data revealed by inews shows the Post Office has renewed its contract with Fujitsu to continue using Horizon until March 2026 at a cost of £40.8m.
The Post Office previously said it planned to replace Horizon with “new branch technology” but would maintain the old IT software until the new technology is developed.
Christopher Head OBE, a former sub postmaster, was sued by the Post Office in the civil courts for more than £80,000 that was supposedly missing from his branch. He has not yet been compensated.
Responding to Fujitsu’s new contract, he added, “We understand that in order to transition to a new system you have to maintain the old one until you get to the point that you are satisfied.
"In this circumstance, with the Post Office, you’d be more cautious given what’s happened with the previous system.”
Janet Skinner, aformer subpostmistress from Hull, was handed a nine-month sentence for theft in 2007 after £59,000 appeared to be missing from her Post Office branch.
She served three months of that sentence before being released with an electronic tag but was hospitalised in 2008 with a stress-related illness.
Commenting on the extension of Fujitsu’s contract, Skinner told inews, “It’s an insult. It’s like they are rewarding them for their bad behaviour.
“There needs to be accountability and accountability is not awarding contracts to a company that has been at the forefront of this scandal.
“It just infuriates me. Absolutely infuriates me. God knows what the other postmasters are feeling. It’s just like being kicked in the teeth.”
A spokesperson for the Post Office said that, while it is too early to speculate about when Horizon will be replaced, it is “committed to delivering a lower-risk, better-value new branch IT for postmasters”.
A Fujitsu spokesperson said, “We are focused on supporting the Post Office in their plans for a new service delivery model, so branches can continue to deliver key services to the public.”
Post office Horizon scandal campaigners have slammed the government for extending a post-Brexit contract worth £67 million with the controversial firm Fujitsu.
A recent report by The Independent stated that His Majesty’s Revenue and Customs (HMRC) has granted a year-long extension to Fujitsu, which developed the faulty software leading to the wrongful prosecution of hundreds of subpostmasters for theft and false accounting, to run its Trader Support Service (TSS),
Fujitsu ruled itself out of bidding for government contracts in January last year due to its role in the Horizon Post Office scandal.
But the extension, worth £66.8m and detailed in documents seen by the media house, was approved because it is not a new contract.
Former sub post-mistress Seem Misra OBE has criticised the government over this move.
She stated on X, "We (SPMR) couldn't work due to wrongful convictions, yet Fujitsu—whose system destroyed lives—is expanding. What have they offered this time to stay quiet? Where's the justice?"
— (@)
Lord Arbuthnot, who campaigned for wrongly convicted sub postmasters, said it was “a worrying decision by the government on several levels”.
“First, it sends Fujitsu and other companies the message that the country doesn’t care about the unethical behaviour shown by Fujitsu in the Post Office scandal.
“Second, it weakens the government’s bargaining power in requiring Fujitsu to bear a substantial portion of the cost of that scandal.
“Third, it suggests that the government is uncomfortably dependent on Fujitsu. And fourth, it ignores the fact that Fujitsu’s capability on this contract may be no better than their Post Office capability," he told The Independent.
“Why didn’t they start work earlier on finding someone else?”
Meanwhile, HMRC said the extension was needed in order to “ensure a period of stabilisation” while new trading arrangements come into place under the Windsor Framework.
It has promised to run a procurement process in the coming months to replace Fujitsu in delivering the service.
Fujitsu in the past has won nearly £6.8bn in nearly 200 contracts from the public sector, including 11 for HMRC to the value of over £1bn, and 12 contracts with the Ministry of Defence for £582m.
Post Office’s new Consultative Council has met for the first time last week on Jan 27 to inform the strategic direction of the organisation. Its remit is to provide a representative postmaster perspective on strategy, culture, funding and governance.
Going forward, the Council agenda could include topics such as banking hubs, the Government’s Green Paper on the future of Post Office, technology strategy or new product development.
The ’New Deal for Postmasters’, announced in November 2024, sets out an ambition to deliver a quarter of a billion pounds boost to postmaster and strategic partner income by 2030.
These improvements to remuneration are subject to funding discussions with government which are positive and ongoing. Postmasters and strategic partners benefited from the first of these increased payments with a £20 million boost to their pay packets in December.
The Council, chaired by Postmaster Non-Executive Director Brian Smith, will meet regularly ahead of Post Office board meetings and a summary of discussions will be published for postmasters to access in a new regular newsletter from the postmaster non-executive directors.
It is comprised of groups representing postmasters, including the National Federation of Sub-Postmasters, Communication Workers Union, Voice of the Postmaster, alongside Post Office's postmaster non-executive directors and Post Office leadership.
Brian Smith is the postmaster for Freefield Post Office on the Shetland Islands and has run the branch for 19 years. Brian was appointed to the Post Office board as a non-executive director in December 2024 and chairs the Consultative Council. Brian Smith said:
“The Consultative Council is an example of the changes which are being implemented at Post Office following evidence heard at the Public Inquiry about the need to embed the postmaster voice throughout the organisation – from the board to the frontline. I am looking forward to bringing almost two decades of experience running a post office to the Council.”
It is one of several changes made or in development at Post Office to ensure the postmaster voice is clearly heard, considered and responded to at every level:
A panel of postmasters will be convened to review operational policies and practice on complex issues and provides feedback and challenge on how they can be improved.
A new wellbeing initiative launched in October 2024 is the result of a collaborative project with the National Federation of Postmasters, Voice of the Postmaster and Post Office colleagues, focused on providing urgent professional care and subject matter expertise on topics ranging from branch security to customer behaviours.
Since August 2024, thirteen regional listening forums have taken place across the UK, with 318 postmasters in attendance, covering a broad range of topics.
The Postmaster Conference, taking place in March, is being co-designed and hosted by postmasters for the first time.
Fujitsu created the Horizon IT system that resulted in some 700 local Post Office managers being wrongly convicted for theft and false accounting between 1999 and 2005. (Photo by ADRIAN DENNIS/AFP via Getty Images)
A former sub post master, who was forced to remortgage his house as he lost thousands of pounds in the Post Office Horizon scandal, said more should be done to compensate the families of the sub-postmasters who also suffered.
Alun Lloyd Jones, 78, from Llanfarian, Ceredigion, has reached a settlement with the company.
Jones, who faced an 18 year battle before receiving compensation, said it was important to consider the impact the scandal has had on the families of sub-postmasters.
"Some have died, some have suffered so that their health has broken and some have had divorces because of the hellish pressure," he said.
"You can never get enough money to compensate… some have lost their businesses, their houses and so on and the experience has destroyed families. I feel very strongly that these families should also be considered," he said.
Jones' troubles began in 1998 when he decided to take over his local post office in Llanfarian, near Aberystwyth.
A year later, the Horizon computer system was introduced in all British post offices, to monitor stock and accounts digitally.
Like many other sub-postmasters, Jones started having trouble with the new system in the office in Llanfarian and another he was responsible for in Blaenplwyf.
After the Horizon system showed that nearly £20,000 had disappeared from his accounts, in 2007 he called the police and the Post Office.
Jones told BBC, "I said I need to be audited now. And they were shocked. 'It's not you who calls auditors,' they said to me, 'it's for us to come and audit you'.
"They came down, two bullies - you've never seen people like them. They came in and they immediately made up their minds that I was guilty... the boy immediately said to the woman 'suspend him'."
To avoid being prosecuted, and in accordance with the agreement with the Post Office, he had to pay back the money, borrowing from his father-in-law, remortgaging his house, before later closing the post office and shop.
"I had to use credit cards to go from day-to-day, because we didn't have any money - everything had gone back to the post office," he said, adding that he also faced reputational pressures as a county councillor for 31 years.
Jones said he watched ITV drama Mr Bates vs The Post Office from a hospital bed in Llanelli, having suffered a heart attack while on his way to see his accountant to discuss his compensation claim before the deadline passed.
A year later, in mid-January 2025, Jones reached a settlement with the Post Office under the Horizon Deficit Scheme.
However, two of Jones' children, who saw him struggle with Post Office, passed away not knowing he had received compensation for what they went through.
He said his daughter had witnessed all the anxiety, having lived at home with her parents.
"She was forty years old, and died without knowing that her father had finally received some sort of settlement," he said.
More than 900 sub-postmasters were prosecuted for stealing because of incorrect information from the Horizon computer system, in what has been described as the UK's most widespread miscarriage of justice.
The UK government said they were considering whether action was needed to recognise the suffering of families, while the Post Office said they were "working with the government to pay compensation to victims as soon as possible".
New figures released today (13 January) reveal that for the first time on record, cash withdrawals at post offices exceeded £1 billion in a single month.
Post Office branches saw £979 million worth of personal cash withdrawals over the counter in December and £35 million worth of business cash withdrawals.
The previous record high was set in December 2023 when a total of £962.8 million worth of personal and business cash withdrawals were made.
In total, £3.7 billion worth of cash deposits and withdrawals too place across the counter at post offices in December. This compares with £3.53 billion in November.
Personal cash and business cash deposits totalled £2.69 billion in December up over 11 per cent year-on-year (£2.42 billion, December 2024).
Personal cash deposits totalled £1.53 billion, up 5 per cent month-on-month (£1.45 billion, November 2024) and up almost 16 per cent year-on-year (£1.32 billion, December 2023).
Business cash deposits totalled £1.17 billion, up 3.8 per cent month-on-month (£1.12 billion, November 2024) and up 6 per cent year-on-year (£1.10 billion, December 2023).
On Christmas Day itself, over £3.7 million in cash was withdrawn or deposited over the counter at 1,300 Post Office branches that were open.
“Our figures demonstrate that millions of people clearly still rely on cash to manage their budget on a day-to-day basis. We saw significant amounts of cash withdrawn every day in the run up to Christmas Day, highlighting just how vital it is for people to be able to withdraw the amount of cash that they need, to the penny if they require, at our branches,” Ross Borkett, Post Office banking director, said.
“It’s testament to the hard work of postmasters and their staff that over a billion pounds was withdrawn over the counter in a single month. They keep their branches open long hours, with many open at weekends. We know that where cash is withdrawn locally it tends to be spent locally, demonstrating the vital role postmasters play in keeping local high streets going and attracting footfall which benefits other nearby retailers too.”
One of the victims of the UK’s infamous Post Office Horizon scandal, Christopher Head OBE, has called on the government to urgently address issues with the redress schemes set up to compensate those affected.
In a letter dated today (7), Head has called on to Minister Gareth Thomas and Secretary of State Jonathan Reynolds to take concrete corrective actions at the earliest, detailing the "unfairness" and inconsistencies plaguing the schemes administered by the Post Office and the Department for Business and Trade (DBT).
This marks a follow-up to a previous letter sent in November 2024, which, according to Head, remains unacknowledged. His latest correspondence highlights delays, adversarial processes, and the mental toll on victims.
In the letter shared on X, Head expressed grave concerns about the "Fixed Sum Awards" system, which offers £75,000 or £600,000 compensation, depending on the scheme. He revealed that some claimants are opting to accept these amounts despite evidence suggesting their claims could be valued much higher.
He writes, "Only yesterday I received yet another email from a claimant I have been assisting for many months in the HSS scheme, who due to anxiety, stress and mental health problems is opting to accept the Fixed Sum Award of £75,000 even though I have advised it is likely from a legal perspective her claim is valued at a much higher level."
Head also warned that the rigid nature of these awards risks undermining the government’s promise of "full and fair redress." Inquiry Chair Sir Wyn Williams had previously raised concerns that fixed awards might be "lost forever" if claimants pursued a full assessment route.
Head criticized the absence of accessible legal support for claimants, many of whom cannot afford the necessary advice. He argued that victims should not bear the financial burden of a scandal caused by institutional failings.
He writes, "Post Office may have caused the original harm, but the harm is being further exasperated by the redress processes. If someone can clearly demonstrate they have a claim that exceeds £75,000, they should be able to receive this amount immediately under the current guidance and then advance a claim for the outstanding balance, which relieves the financial worries they may have and making the remaining process more tolerable."
Head highlighted disparities in how interest calculations on losses are handled across different redress schemes, describing the process as inconsistent and unfair. Using his own case as an example, he noted a significant difference between what he was offered and what he should have received under the methodology applied in other schemes.
“The approach is not consistent, which means we have further unfairness,” he wrote, adding that an independent oversight committee could help ensure fairness and consistency.
Head proposed specific reforms, including removing the “legally binding” stipulation on second-panel assessments in the Group Litigation Order (GLO) scheme. He also urged the government to give final reviewer Sir Ross Cranston a broader remit to resolve disputes earlier in the process.
He concluded by criticizing what he described as a "damage limitation and PR exercise" by Whitehall, rather than a genuine effort to deliver full redress.
Head urged ministers to act swiftly to prevent further harm to victims and ensure the redress process meets its promises.
"The overarching aim of every scheme should be fairness, consistency and benefit of doubt towards the Sub-Postmaster, Postmistress, employees or family members," he states.
Head recently received OBE for services to justice alongside fellow Post Office scandal victims Lee Castleton, Seema Misra and Jo Hamilton. Head stated that despite the OBE being a "huge honour", it was a "double-edged sword" as he, with many others, had not received full redress.
He was falsely accused of stealing more than £80,000 from his branch in West Boldon in 2006 before the criminal case against him was dropped. Head, who became the youngest sub postmaster at the age of 18 when he took over the West Boldon Branch, was then pursued by the Post Office through the civil courts.
The Post Office Horizon scandal saw more than 900 sub postmasters being prosecuted between 1999 and 2015 after faulty Horizon accounting software made it appear that money was missing from their accounts.
Hundreds are still awaiting compensation despite the previous Conservative government announcing that those who have had convictions quashed are eligible for £600,000 payouts.