At least 900 victims of the Post Office scandal were wrongly prosecuted over financial shortfalls caused by the faulty software, which has been used since 1999.
However, when the contract was made public last month, it included a further £21m that will be paid to Fujitsu to address Horizon’s “additional upgrades to address legacy technical debt issues”, which arise when outdated software no longer receives updates, making it susceptible to technical glitches and cyber attacks.
Last year, more than £68m was paid to Fujitsu to operate and maintain the system, while a further £11m was paid between January and 12 March 2025, according to data obtained through freedom of information laws.
“It’s been cobbled about for years, which is why it has never worked properly, but it was only the incompetence of senior management at the Post Office that kept trying to breathe life into it by throwing taxpayers money at it year after year.
While the Post Office has pledged to implement a “lower-risk, better-value new branch IT for postmasters”, it declined to comment on whether its contract with Fujitsu will be extended beyond 2026.
Sir Alan Bates, founder of Justice for Subpostmasters Alliance, was knighted last year for his campaigning work for wrongly convicted Post Office workers (Photo: Reuters/ Andrew Matthews)The Justice for Subpostmasters Alliance, led by Sir Alan, is battling for compensation for 555 former sub-postmasters who took part in pivotal group legal action against the Post Office between 2017 and 2019.
Around 70 of the workers in Sir Alan’s Group Litigation Order (GLO) scheme have died, and the campaigner fears more may not live to see justice served, with a new legal battle brewing over compensation delays.
A scene from ITV drama Mr Bates vs. The Post Office (Photo: ITV Studios)
He was prosecuted by the Post Office after more than £80,000 was missing from his branch.
“Yet, since the High Court case ended in 2019, we don’t seem to be any further forward in terms of its replacement structure than we were six years ago,” Mr Head told The i Paper.
“The longer you have to maintain the Fujitsu system, which we know is not robust, the more money is funnelled into that system, which is all Government money.”
“We are looking at Post Office’s technology and data strategically, to ensure that we reduce central costs and provide postmasters with the tools they need to serve their customers and run profitable businesses into the future.”
Mr Head was prosecuted when more than £80,000 went missing from his branch, but his case was later dropped (Photo: supplied)Under its Overturned Convictions Scheme, the Government offers an immediate £600,000 pay-out to victims of the Post Office scandal whose convictions have been overturned.
Those who seek to claim more than £600,000 are eligible to receive £450,000 in interim payments, with any further compensation they receive being conditional on an assessment of their case.
How are Post Office scandal victims compensated?
As of 31 March 2025, approximately £892 million had been paid to over 6,200 victims of the Post Office scandal through four schemes.
The Group Litigation Order (GLO) scheme
The GLO scheme was set up to ensure that the cohort involved in the Justice for Subpostmasters Alliance’s High Court proceedings received extra money to reflect the hardship they faced.
The group secured a £42.5 million settlement in 2019, but the costs of the proceedings meant each claimant was paid a relatively low level of compensation.
As of 31 March 2025, £150 million had been paid under the scheme, including interim payments.
Overturned Convictions Scheme (OCS)
This scheme is open to anyone who had their Horizon-related convictions overturned by the courts, regardless of whether they fall within the GLO group.
Through this scheme, claimants can receive a fast-tracked £600,000 settlement.
Otherwise, they can opt for a higher level of compensation, but that implies losing their automatic entitlement to the initial £600,000 pay-out.
Whether claimants are entitled to more than £600,000 will depend on an assessment of “their specific facts and individual circumstances“.
Interim payments of £200,000 are made as soon as possible following the overturning of convictions under this scheme.
For those claiming more than £600,000, an additional £250,000 interim payment is made when the Post Office receives their full claim.
As of 31 March, £67m had been paid out under this scheme, including interim payments.
Horizon Convictions Redress Scheme (HCRS)
The HCRS scheme was opened to provide redress for people whose criminal convictions are overturned by legislation passed into law by the UK and Scottish Governments in 2024.
Recipients are eligible for a fixed total sum of £600,000. This will be made up of a preliminary payment of £200,000, then a second and final payment of £400,000.
Alternatively, claimants can request more than £600,000, but will need to provide “evidence of your losses so you can receive the exact amount you lost”.
Similar to the OCS, whether claimants are entitled to more than £600,000 will depend on an assessment of their case.
A total of £221 million had been paid out through this scheme, including interim payments, as of 31 March.
Horizon Shortfall Scheme (HSS)
The HSS is open to postmasters and postmistresses who had not been part of the GLO action and who did not have a criminal conviction.
Claimants can apply for a £75,000 fixed sum award.
Otherwise, they can apply for a greater amount that would need to be approved by an independent advisory panel.
As of 31 March, £454 million had been paid out through this scheme, which includes interim payments.
Mr Head said that the “take it or leave it” nature of the scheme means that sub-postmasters and sub-postmistresses settle for the immediate £600,000 payment rather than claiming more – even if the damages they faced exceeded that amount.
“I was audited and the next thing I know the police arrived at the Post Office, took me outside and searched my car.
“Bear in mind that it was 2 weeks before Christmas, so my children’s presents were wrapped and they opened them up, presumably to look for any money that I was meant to have taken.
Before appearing in court, Julia said she dropped her children at their grandparents’ house “and told them I was going to go shopping”.
“If I didn’t have my children, I don’t think I would’ve made it out,” she added.
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“I didn’t tell a single soul. Not even my family at the time.
Julia only realised more sub-postmasters and sub-postmistress had been wrongly prosecuted after the scandal gained widespread attention through Mr Bates vs the Post Office.
Following an assessment of the damages she sustained, Julia’s solicitors informed her she was eligible for up to £800,000, including the cost of her house, which she was forced to sell after being released from prison.
“To go back down to £450,000 if my claim wasn’t successful would be a bit of a kick in the teeth after everything I’ve been through in the last 20 years.
“They are still ruining my life 20 years later.”
“At times it seems to be whatever mood the claims assessor is in as to what is offered.
“There is little doubt that the best thing the victims can now do is to ask the courts to review how they have been dealt with and review their claims.”
“We have doubled the amount of payments under this Government and are settling claims at a faster rate than ever before to provide them with full and fair redress.”
Steve Robson, The i Paper‘s Northern Correspondent, has been shortlisted for the Scoop of the Year at the annual Press Awards for his coverage of a second IT scandal, sparked by the Capture IT system used before Horizon.
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