Post Office Extends Fujitsu Contract Amid Scandal

The Postal Service has agreed to a further extension of its scandal-ridden software contract with Japan’s Fujitsu as the company plans to switch to a rival provider in the next few years. The post office, which is owned by the government, will pay a further £41 million to Fujitsu from next April to March 31, 2027, for the use of the Horizon system.

Background of the Scandal

The move comes as Post Office bosses prepare to end the company’s partnership with Fujitsu, which is under pressure to pay hundreds of millions of pounds for its stake in the Post Office scandal. Hundreds of subpostmasters were wrongfully imprisoned for fraud and theft because Fujitsu’s software contained flaws that, it later emerged, were suspected by executives involved in the company’s administration.

Compensation Claims

Last week, it was revealed that the leader of the effort to seek justice for victims of what has been called Britain’s biggest miscarriage of justice had completed his multi-million pound compensation claim from the government. The claimant was paid a seven-figure sum.

Post Office Statement

In a statement, a spokesperson for the Post said: "The Post has agreed a one-year bridging extension of the Horizon contract with Fujitsu for the period from April 1, 2026 to March 31, 2027." The spokesperson added: "We are committed to moving away from Fujitsu and exiting the Horizon system as quickly as possible. We are engaging another supplier to take over Horizon while a new system is developed, and that process is well underway."

Future Plans

The Post Office expects to be able to award a contract for a new supplier to manage Horizon by July 2026, based on current timelines. Fujitsu executives have acknowledged the company has a "moral obligation" to contribute financially because of the Horizon scandal, but have not yet agreed on a final figure with the government. This is unlikely to be the case until Sir Wyn Williams’ public inquiry is completed.