Post Office Horizon IT scandal: “serious structural failings persist”

‘Fujitsu has yet to contribute a penny to the nearly £2 billion redress bill’

Classic old fashioned post office sign

One year on from Westminster’s Business and Trade Committee’s last report on the Post Office Horizon scandal, progress has been made delivering redress for victims of the Fujitsu-supplied Horizon IT scandal. More than 11,300 claimants have received payments with £1.44 billion distributed. 

But thousands of sub‑postmasters are still waiting for the redress they are owed, and in a report today the Committee says “serious structural failings persist” in the redress system. Many victims still face unacceptable delays, inadequate offers, and administrative processes that “re‑traumatise” those who have already been seriously wronged.

Fujitsu, with a central role in one of the greatest miscarriages of justice in British history, has contributed nothing to the bill for redress and is still expanding its public sector revenues. A few days after UK CEO Paul Patterson gave evidence in Parliament, Fujitsu announced that he would move this month to a non-executive role “managing the company’s response” to the public inquiry into the Horizon scandal.

There is a serious risk of an unknown number of unsafe convictions – potentially including wrongful imprisonment – that are yet to be uncovered or have any access to justice. The Committee found evidence that the MoJ is wrongly judging eligibility of sub postmasters who should have had their convictions quashed, and there is no route for appeal in these cases. 

And there is now emerging evidence that pre-Horizon IT systems, especially Capture, had similar flaws to the Horizon system that may have contributed to unsafe convictions. Incomplete records mean that the current confirmed number of Capture cases may represent just “the tip of another iceberg”, with the Committee calling for urgent legislation to quash Capture-related convictions.

The Horizon Shortfall Scheme (HSS), still managed by Post Office, routinely sees its offers overturned and significantly increased after a DBT-administered appeal. The stark disparities between initial offers and eventual awards reinforces that the HSS is no longer fit for purpose. Fully assessed claims continue to take far beyond target timelines with thousands of late claims still awaiting final offer.

The Horizon Convictions Redress Scheme (HCRS) is performing better, but claimants are still being forced to jump through administrative hoops to secure what is now effectively a guaranteed minimum £600k redress payment. That should simply be paid in full to all eligible claimants now.

Fujitsu has acknowledged its moral obligation to contribute to the cost of redress, yet it has made no interim payment and has agreed no figure. The total cost of redress payments now stands around £2 billion.  But despite its “self-imposed moratorium” on bidding for new public contracts, Fujitsu continues to benefit from substantial Government contracts. The failure to even offer an interim amount is “unacceptable”.

Rt Hon Liam Byrne MP, Chair of the Business and Trade Committee, said: “For hundreds of sub-postmasters, justice has come far too slowly. Many have waited years for the truth to be recognised and for the compensation they are owed. Yet today we find serious structural failings still blocking the road to justice.

“Thousands of victims are still waiting for fair redress, while the processes designed to help them are too often slow, bureaucratic and re-traumatising. That is simply unacceptable after one of the greatest miscarriages of justice in British history.

Worse, Fujitsu has yet to contribute a penny to the nearly £2 billion redress bill, even as it continues to benefit from public contracts. That cannot continue. It is simply wrong that taxpayers are covering the costs for Fujitsu’s sins while Fujitsu is still profiting from taxpayers funded contracts.

“We were also concerned to hear new evidence that suggests unsafe convictions linked to earlier systems such as Capture may be only the tip of another iceberg. Parliament must act quickly to quash these convictions and ensure that every victim finally gets the justice they deserve.

“The victims of this scandal have shown extraordinary courage. The country owes them more than apologies — it owes them justice, accountability, and full and fair redress without further delay.”

Remove Post Office from Horizon scandal compensation schemes, urges Westminster committee

The cross-party Business and Trade Committee has today published its recommendations for delivering faster and fuller payments to Horizon scandal victims following an “abject failure” of delivering redress to date.

The report recommends ending the Post Office’s involvement in any redress programmes, labelling it as “not fit for purpose to administer any of the schemes required to make amends”. It cites both victims’ lack of confidence in the firm that “ruined the lives of innocent sub-postmasters” and its chaotic leadership.

The Committee calls on the Government to create a “properly resourced” independent intermediary that would offer legal and forensic accounting services to victims to ensure victims are equipped with all the facts and figures they need to secure fair redress and compensation.

Committee Chair Liam Byrne said: “Justice delayed is justice denied. And bluntly justice has been denied to our innocent sub postmasters for far too long. It’s high time for the circus of recent weeks to end and for cheques to start landing on the doormats of innocent victims. 

“We now know the Post Office knew of problems twenty years ago. Yet at best, only £1 in £5 of the budget for compensation has been issued. That is a national disgrace”.

The spectacle of the battle between the Post Office chief executive and its former chairman light up a simple truth; that the top of the Post Office is in utter disarray and not fit for purpose to run the payouts to former sub-postmasters.

It’s involvement in running Post Office redress schemes has to end and ministers must create a new, independent body set up that will genuinely help victims through their every stage of their compensation claims.”

Five years on from the landmark court case victory by former sub-postmasters led by Alan Bates over the Post Office, only 20% of funds set aside for redress have been spent. Many cases have been stalled by the Post Office’s sluggish disclosure mechanisms.

To stop “unacceptable delays”, the report says strict deadlines by which each stage of the redress process will be delivered for each case should be legally-binding. Fines for delays should be paid to claimants, it adds.

Mr Byrne added, “To guarantee this scandal drags on no longer, we have to enshrine into law an idea proposed by Mr Bates, of legally binding timetables for payouts. Any new Bill that the Government presents to parliament, must now pass the ‘Mr Bates Test’ of legally binding timeframes for settling justice.

“Finally, we have to make sure that fast compensation is fair compensation. Otherwise, we risk innocent sub-postmasters to face a new prison of poverty. We cannot and must not let that happen.”

Other measures recommended by the report include removing a cap on legal expenses for sub-postmasters and a standardised set of tariffs to help victims to better estimate what they are entitled to.