Britain’s state-owned Post Office has agreed a new £41million contract with technology giant Fujitsu to extend the use of its Horizon software until March 2027.
The deal prolongs one of the most controversial partnerships in British public service history, as the organisation prepares to replace the system linked to the country’s worst miscarriage of justice.
The one-year extension will begin in April 2026 and serve as a temporary measure while the Post Office introduces an alternative technological platform.
Executives insist the agreement represents a final bridging period before the company fully severs ties with Fujitsu.
A Post Office spokesman said: “We are committed to moving away from Fujitsu and off the Horizon system as soon as possible.”
The organisation is now seeking a new supplier to take over operations and support the transition to a completely new digital infrastructure.
“We are bringing in a different supplier to take over Horizon whilst a new system is developed, and this process is well underway,” the spokesman added.
The extension of the deal has caused a furore on social media. One user took to X to say: "Of course it has, people wrongly jailed , taking their own lives because of a completely inadequate and inaccurate system. Just sums this country up."
Many subpostmasters are yet to be compensated for the scandal
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The postal service expects to select a replacement contractor by July 2026, with the transitional arrangement designed to maintain service continuity across its national network.
The move signals the beginning of the end for the decades-long partnership between the two organisations.
Fujitsu has operated the Horizon system since its launch, but the platform’s defects led to the wrongful prosecution of hundreds of sub-postmasters for theft and false accounting.
The software faults caused accounting shortfalls that were later proven to be inaccurate, triggering what has been recognised as Britain’s most serious judicial failure.
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Evidence presented to Parliament revealed Fujitsu executives were aware of potential flaws in the system during its operation
| PAEvidence presented to Parliament revealed Fujitsu executives were aware of potential flaws in the system during its operation.
The renewed deal follows the government’s recent settlement with campaigner Sir Alan Bates, who led efforts to secure justice for those wrongly convicted.
Sir Alan is understood to have received a compensation package valued between £4million and £5million for his role in the decades-long fight for redress.
His campaign helped expose the wrongful prosecutions that left many postal workers facing bankruptcy, imprisonment and the loss of their reputations.
Fujitsu has publicly accepted its “moral obligation” to contribute financially to the compensation scheme, but has not yet reached a formal settlement with the government.
The final amount is expected to be determined after Sir Wyn Williams concludes his public inquiry into the Horizon scandal.
Industry analysts believe the company’s eventual payment could total several hundred million pounds, reflecting the widespread harm caused by the faulty software.
The Department for Business and Trade has not commented on ongoing discussions over Fujitsu’s contribution or the timetable for reaching a final agreement.
Post Office scandal victims have been campaigning for justice for many years | PAOn April 23, 2021, the Court of Appeal overturned the convictions of 39 Subpostmasters who had been wrongly accused and prosecuted by the Post Office using evidence from a faulty software system called Horizon.
Over a period of 15 years the Post Office prosecuted more than 700 people and impacted the lives of many more, with victims living under the threat of prosecution.
Many subpostmasters have reported suffering for years of guilt, shame and financial hardship.
Fujitsu and the Horizon Scandal Fund have been contacted for comment.
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