Post Office has signed a one-year contract extension with Japanese tech giant Fujitsu to run Horizon until March 2026, dumping its replacement after setbacks caused costs to skyrocket to as much as £2 billion.
The in-house New Branch IT system (NBIT) was supposed to be finished by March 2024 at an initial cost of £200m over three years. However, difficulties in its development led to expensive delays.
According to recent reports, staff has been told that the government has refused to fund the system’s £1million-a-week running costs.
Meanwhile, oldest victim of Post Office Horizon has slammed the government, stating that she has been offered less than a third of what she had claimed in compensation.
Brown’s lawyers, with the help of forensic accountants, spent nearly three years preparing her claim for compensation. When her offer came through, it was for 29 per cent of what she had claimed
“We’re just treated like dung,” Brown told the BBC. “I’m totally disgusted. It simply adds insult to injury. You talk about the Christmas and goodwill. Where’s the goodwill towards the sub-postmasters here."
She said with the help of her government-paid advisors, multiple reports were prepared to back up her detailed claim. More information was then requested by lawyers acting on behalf of the government which oversees the GLO scheme.
In her compensation offer letter, she wasn’t awarded anything for loss of future earnings and was offered only a third of the amount she claimed for past loss of earnings. She was also not awarded the full amount she claimed for harassment, even though the Department for Business and Trade acknowledged she had suffered harassment linked to issues with Horizon.
Rejecting the offer, Brown has declared that she will take her case to an independent panel for assessment.
91-year-old former sub-postmistress Betty Brown and her husband spent more than £50,000 of their savings to cover the unexpected losses which started as soon as the Horizon computer system was installed in her branch. She was hounded out of her job and forced to sell her post office at a knockdown price in 2003.
Brown was one of the original 555 victims who took part in the landmark group legal action led by Alan Bates against the Post Office. They won their battle five years ago this month but never received proper compensation because the money they received was largely swallowed up by the huge costs to fund their case.
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.”
An anonymous group consisting of current and former employees of the Post Office and Royal Mail have called on the Forfeiture Committee to remove of honours awarded to 14 individuals who are connected to the Post Office Horizon scandal.
The 14 names mentioned by the group includes former ministers, civil servants, and Post Office and Royal Mail bosses such as Vince Cable KCB, Ed Davey KCB, Jo Swinson CBE, Donald Brydon CBE, Moya Green DBE, Alan Cook CBE and Alwen Lyons OBE.
The group has written to the committee listing the names of individuals who it said “owned, oversaw, governed and ran the Post Office” during the scandal, Computer Weekly reported.
The letter, as seen by Computer Weekly, stated, “We are deeply concerned by the testimony given under or to the inquiry, particularly during phases five and seven which has revealed beyond any doubt the incompetence, negligence, restlessness, ethical corruption and wilful blindness (‘not me guv’ attitude) of certain individuals at the heart of Whitehall, all of whom have been bestowed with honours.
“There can be no better an example of rewards for failure than those who owned, oversaw, governed and ran the Post Office – a taxpayer-funded organisation – and have received honours for their public or related service.
“The Forfeiture Committee, therefore, does not need to wait to consider stripping honours from those other senior individuals responsible for the scandal who have blatantly contravened a range of governance and conduct codes, legal and fiduciary duties at the Nolan principles.
"Their abject behaviour or failure to act in accordance with these standards has brought the honours systems into disrepute.”
This comes a day after the release of a damning report by Commons MPs on the progress of compensation of Post Office Horizon scandal victims.
In the report by the Business and Trade Committee (BTC), MPs have called for the government to be fined if it fails to provide redress quickly enough to victims of the Horizon software scandal.
MPs have called on to introduce new legally enforceable time limits for each stage of claim processing.
The process of seeking compensation is "akin to a second trial for victims", the committee chair Liam Byrne said.
It is "imperative" applicants receive upfront legal advice paid for by scheme operators rather than applicants, the committee's report said, as evidence given by claimants' solicitors said when they get legal advice, their financial redress offers double.
More than 700 sub-postmasters across the UK were wrongfully prosecuted by the Post Office for theft and false accounting using the Horizon software made by Fujitsu which incorrectly generated shortfalls in branches.
Many more incurred large debts, lost homes, experienced relationship breakdown, became unwell in an effort to repay the imagined shortfalls and some took their own lives.
Commons Business and Trade Committee has called for legally binding timeframes on Government at each stage of processing claims under the Horizon Convictions Redress Scheme, backed by financial penalties awarded to the claimant if the deadlines are missed.
As mentioned in the report titled "Post Office and Horizon scandal redress: Unfinished business" released by Commons Business and Trade Committee on Wednesday (1), just £499 million of the £1.8 billion set aside for financial redress has been paid out across the four redress schemes, with 72 per cent of the budget for redress still not paid.
In the case of the Horizon Shortfall Scheme, 14 per cent of those who applied before the original 2020 deadline have still not settled their claims.
The Committee found that the “schemes are so poorly designed that the application process is akin to a second trial for victims” with an excessive burden placed on claimants to answer complex requests for information about their losses in the scandal, and delays processing those requests and disclosures back from the Post Office.
On the scheme administrators’ side, legal advice has been extensive and costly. To date, Post Office Ltd has spent £136 million on legal fees relating to the redress schemes, including £82 million to just one firm, Herbert Smith Freehills, for services including their legal advice on the HSS and Overturned Convictions Scheme.
Victims however have been offered no legal advice up-front in submitting their claims, despite being required to grapple complex legal concepts about the amount of redress they were owed.
The committee also mentioned that many years had passed and the victims no longer had access to the financial records of where Horizon’s systemic errors had occurred. The Committee says it is “imperative” now that claimants are offered legal advice up front, at no cost to themselves but paid for by the scheme administrators.
Chair of the BTC Rt Hon Liam Byrne MP said, “Years on from the biggest miscarriage of justice in British legal history, thousands of Post Office Horizon victims still don’t have the redress to which they’re entitled for the shatter and ruin of their lives.
“Ours is a nation that believes in fair play and the rule of law. Yet victims told us that seeking the redress to which they’re entitled is akin to a second trial. Payments are so slow that people are dying before they get justice. But the lawyers are walking away with millions.
“This is quite simply, wrong, wrong, wrong.
"The government has made important steps forward. Almost half a billion pounds of redress payments are now out the door, the budget has gone up to being fully funded and the Post Office was ordered to write to everyone who might be owed something for what happened to them.
“But we can’t go on like this. Justice delayed is justice denied. So today, we’re setting out a practical, common-sense plan to reboot the redress system.
“Victims should have upfront legal advice to help make sure they get what’s fair. We need hard deadlines for government lawyers to approve the claims with financial penalties for taking too long. Crucially, we need the Post Office, which caused this scandal in the first place, taken out of the picture.”
The Committee calls on Government to remove the Post Office from administering any of the redress schemes and to introduce binding timeframes for scheme administrators at each individual stage of each scheme, with financial penalties passed on to the claimant if these deadlines are not met.
The MPs have also asked the Government to appoint an independent adjudicator for each scheme and empower them to provide directions and case management to ensure claimants move through the process swiftly.
The Government is also called on to provide clear, strong instructions to taxpayer-funded lawyers to maximise the speed of redress, eliminate legal delays, enhance the benefit of doubt given to claimants, and publish the costs spent on lawyers for the public and Parliament to see.
Westcotes postmaster, Hemandra Hindocha, has been recognised by the King for services to his Leicester community and other postmasters.
Better known as “H” by customers, he has been at the heart of his Westcotes community for nearly 38 years after initially starting his postmaster career in Northampton, for five years.
The long-serving postmaster, who has served people in the Midlands for 43 years, has been awarded a British Empire Medal for the important difference he has made, including starting a support group for postmasters in the Midlands.
“H” was born in Uganda and had gone to university in India when his family had to flee Uganda in 1972 under Idi Amin’s rule. When he gained his degree in accountancy, he joined his family in the UK in 1973. His first postmaster role was at Northampton’s Regent Square Post Office until he moved to a bigger branch at Westcotes in 1988.
Soon after he set up a support group for postmasters in Midlands to help new or less experienced postmaster or those needing help to share knowledge and advice. It was also a social group for business people running Post Offices. Hemandra then also went on to Executive Office for Midlands for the National Federation of Subpostmasters.
Hemandra Hindocha and wife Kirti
“H” and his wife, Kirti, along with staff managed to keep Westcotes Post Office open throughout the pandemic to maintain vital services to the community.
He notched up 40 years’ service in 2021, and as soon as pandemic restrictions allowed he celebrate his achievement with a special Indian meal with 45 local postmasters and Post Office colleagues.
The 73-year-old has always considered the role of a being a postmaster as a “prestigious position” and maintains that it has been an honour to work for the Post Office.
“I was surprised and delighted to find out I had been named in the New Years’ Honour list. I still love coming to work every day, even on my days off,” Hindocha, said.
“I especially enjoy the rapport with my customers and understand the importance of building good relationships with them – they are like extended family. I have got to know several generations of the same family. People I served in my early days, many now have children and grandchildren.
Hemandra Hindocha and wife Kirti
Post Office area manager Ezra Nadasen said: “We want to sincerely thank “H” for running Westcotes Post Office for nearly 38 years and a branch in Northampton before that. He is a first-class postmaster who really cares about the community that he serves and also goes above and beyond for other postmasters, especially those who are new to the role or need advice. He is also held in high regards by other postmasters.”
Over £3.7 million in cash was withdrawn or deposited over the counter at 1,300 Post Office branches that were open on Christmas Day, the firm revealed on Monday.
Based on trends for this December and expectation that News Year’s Eve is not a wash-out, the Post Office predicts total cash withdrawals over the counter (personal and business) for December could exceed £1 billion for the first time ever.
Last December, a then record £963 million was withdrawn over the counter (£930 million personal cash withdrawals and £32.8 million business cash withdrawals).
On Christmas Day, just over £1 million was withdrawn and almost £1.5 million was deposited by personal customers over the counter. In addition, over £1.2 million was deposited by business customers.
In total over £3.7 million in cash was deposited and withdrawn on Christmas Day. This compares to £3 million on Christmas Day 2023.
The biggest day for personal cash withdrawals this December was Monday 23 December when £61.2 million was withdrawn over the counter. This fell just short of the all-time record which was Friday 22 December 2023 when personal customers withdrew £62.4 million.
“Millions of people rely on being able to access cash every day at their local Post Office and it’s no different on Christmas Day,” Ross Borkett, Post Office banking director, said.
“Record breaking amounts of cash being withdrawn this month will come as no surprise to postmasters and their teams who have worked flat out this month ensuring their local customers have been able do their everyday banking at this critical time of year.
“Business cash deposits being made on Christmas Day indicate just how vital it is that pub, cafe and restaurant owners have somewhere open and convenient to deposit their much-needed Christmas cash takings ahead of a quieter January.”
On Christmas Day itself, just over 1,300 branches, predominantly operated by independent postmasters and located in convenience stores, served customers. Post Office has 11,500 branches across the UK and typically has around 4,000 branches open on weekends.