The Post Office has agreed to extend its controversial software contract with Fujitsu, committing to pay an additional £41 million to continue using the Horizon system until March 2027.
The state-owned company confirmed the one-year bridging extension as it works towards transitioning to an alternative software supplier, according to information obtained by Sky News.
Contract Extension Details
The new agreement covers the period from 1st April 2026 to 31st March 2027, maintaining the Post Office's reliance on the Fujitsu system that was at the heart of Britain's biggest miscarriage of justice.
A Post Office spokesperson stated: "We are 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 underway."
The organisation expects to award a contract for a new supplier to manage the Horizon system by July 2026, according to current timelines.
Background of the Horizon Scandal
The Horizon IT system, developed by the Japanese technology company Fujitsu, led to the wrongful prosecution of hundreds of sub-postmasters between 1999 and 2015.
Flaws in the software resulted in incorrect financial shortfalls being recorded, leading to false accusations of theft and fraud against innocent sub-postmasters. Many faced imprisonment, bankruptcy, and reputational ruin as a result of the system's errors.
Recent developments have seen progress in compensation claims, with Sir Alan Bates - who led the campaign for justice - settling his multimillion-pound claim with the government. Sources indicated he received a seven-figure sum, potentially between £4 million and £5 million.
Financial Contributions and Moral Obligations
Fujitsu executives have publicly acknowledged that the company has a "moral obligation" to contribute financially to the redress scheme for victims of the Horizon scandal.
However, the final amount Fujitsu will pay towards compensation remains undetermined, with negotiations expected to continue until the conclusion of Sir Wyn Williams' public inquiry into the scandal.
The Post Office, wholly owned by the UK government, continues to face scrutiny over its handling of the situation and its ongoing relationship with Fujitsu despite the planned transition to a new supplier.
The Department for Business and Trade has been contacted for comment regarding the latest contract extension and the broader implications for taxpayers and victims awaiting full resolution.
