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Post Office Secures £136M Grant to Maintain Flawed Horizon IT System

The government funding will support the aging system’s upkeep and aid in developing a delayed replacement after years of failed attempts.

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Overview

  • The Post Office has spent over £600 million since 2012 to keep the defective Horizon system operational, despite planning its replacement more than a decade ago.
  • A £136 million government grant has been approved to maintain Horizon and fund the Future Technology Portfolio, which includes the delayed NBIT replacement system.
  • The Post Office’s 1999 contract with Fujitsu denied it ownership of Horizon’s core code, complicating efforts to replace or switch suppliers.
  • Failed replacement projects include a £40 million IBM initiative in 2016 and an Amazon cloud plan abandoned in 2022, with the in-house NBIT system now delayed and over budget.
  • The Horizon system caused the wrongful prosecution of over 900 sub-postmasters, leading to a public inquiry, compensation schemes, and ongoing efforts to address the scandal’s fallout.