The Post Office has extended its contract with Fujitsu to use the Horizon IT system for an additional year. This decision comes amid ongoing efforts to replace the controversial software linked to wrongful prosecutions of sub-postmasters.

  • The Post Office will pay £41 million to Fujitsu for the extension.
  • Over 900 sub-postmasters were wrongfully prosecuted due to Horizon errors.
  • A new supplier for the Horizon system is expected to be selected by July 2026.

    • Contract Extension Details

    The Post Office has confirmed it will continue using the Horizon IT system, extending its contract with Fujitsu until March 2027. This extension will cost the organization an additional £41 million. The Horizon system has been at the center of a scandal that led to the wrongful prosecution of more than 900 sub-postmasters, who were falsely accused of financial discrepancies due to flaws in the software. A spokesperson for the Post Office stated that the organization is committed to transitioning away from Fujitsu and the Horizon system as quickly as possible. They are actively seeking a different supplier to manage the system while a new solution is developed. The spokesperson emphasized that the process is already underway.

    Plans for Replacement

    The Post Office anticipates awarding a contract for a new supplier by July 2026. However, sources indicate that the contract could potentially be extended until 2028, allowing for a smoother transition as the new supplier takes over operations. The Horizon system is currently used by sub-postmasters across the UK, making the transition critical for ongoing operations. Previously, the Post Office had been developing an in-house alternative called NBIT. However, concerns over rising costs and complexity led to the project's cancellation shortly after the appointment of new chair Nigel Railton in November 2024. The organization has since shifted its focus to procuring software from external suppliers.

    Government Response

    A government spokesperson acknowledged the urgency of replacing the Horizon system as part of the Post Office's broader transformation efforts. They noted that the continued use of Horizon reflects past under-investment, which cannot be resolved immediately. The spokesperson emphasized the need to ensure that postmasters have the necessary tools to serve their customers during this transitional period.

    Fujitsu's Acknowledgment of Issues

    Fujitsu executives have publicly apologized for their role in the Horizon scandal, admitting that the system contained bugs, errors, and defects from its inception. Paul Patterson, the head of Fujitsu's European division, recognized the company's "moral obligation" to contribute financially to the resolution of the issue. However, no specific timeline or financial commitment has been established as of yet.