Post Office Commits £41 Million to Extended Horizon IT Contract

The Post Office has agreed to extend its deal to use the controversial Horizon IT system for another year, committing to pay a further £41 million to the Japanese-owned company Fujitsu. The extension, which will see the system used until March 2027, has been met with criticism from those who have been affected by the system's faults, which led to the wrongful prosecution of over 900 sub-postmasters. According to a Post Office spokesperson, the company is committed to moving away from Fujitsu and off the Horizon system as soon as possible. "We are bringing in a different supplier to take over Horizon whilst a new system is developed, and this process is well under way," they said. "We expect to award a contract for a new supplier to manage Horizon by July 2026, according to current timelines." The Horizon system has been at the centre of a major scandal, with sub-postmasters wrongly accused of theft and other crimes due to errors in the system. The system, which is used by sub-postmasters at branches across the UK, has been the subject of numerous complaints and lawsuits. The Post Office had been working on a project to replace the Horizon system, but the process has been slow to progress. Sources have told the BBC that the contract could be extended until 2028 while the new supplier takes over the running of Horizon. The decision to extend the contract has been met with disappointment from some quarters, with critics arguing that it is a further example of the Post Office's failure to address the issues with the Horizon system. However, a Post Office spokesperson said that the company is committed to finding a solution and is making progress on the replacement project. The Post Office has been working to address the issues with the Horizon system since the scandal came to light, and has set aside millions of pounds to compensate sub-postmasters who were wrongly prosecuted. The company has also faced criticism for its handling of the scandal, with some accusing it of failing to take adequate action to address the issues with the system. The extension of the contract is likely to be seen as a setback for those who have been affected by the Horizon system's faults, but it is also a reminder of the complexity and difficulty of replacing a major IT system. The Post Office has said that it is committed to finding a solution and is making progress on the replacement project, but it remains to be seen how long it will take to complete the process.