🔗 British Post Office Scandal

🔗 Human rights 🔗 Computing 🔗 Finance & Investment 🔗 Law 🔗 Computing/Software 🔗 Software 🔗 Software/Computing 🔗 United Kingdom

The British Post Office scandal is a widespread and long-lasting series of individual miscarriages of justice which, between 1999 and 2015, involved over 700 subpostmasters being wrongly convicted of theft, false accounting and fraud when shortfalls at their branches were in fact due to errors of the Post Office's Horizon accounting software. In 2019, the High Court ruled that the Horizon system was faulty and in 2020 the government established a public inquiry. Courts began to quash convictions from 2010. As of January 2024, some victims are still fighting to have their convictions overturned and receive compensation, the public inquiry is ongoing, and the Metropolitan Police is investigating the Post Office for potential fraud offences.

The Horizon accounting system was developed by ICL Pathway, owned by the Japanese company Fujitsu. In 1999, the Post Office started to roll out the new software to its branch and sub-offices, the latter managed by subpostmasters on a self-employed basis under contracts with the Post Office. Almost immediately, some subpostmasters noticed the new system reporting false shortfalls, sometimes for thousands of pounds. The Post Office insisted that the system was robust and, when shortfalls occurred, prosecuted the subpostmasters or forced them to make up the amount. The impact of court cases, criminal convictions, imprisonment, loss of livelihood and homes, debt and bankruptcy took a heavy toll on victims and their families, leading to stress, illness, divorce and, in at least four cases, suicide. In May 2009, Computer Weekly broke the story about problems with Horizon software and in September 2009 subpostmaster Alan Bates set up the Justice for Subpostmasters Alliance (JFSA). In 2012, as a result of pressure from campaigners and Members of Parliament, the Post Office appointed forensic accountants Second Sight to conduct an investigation into Horizon. The investigators concluded that Horizon contained faults that could result in accounting discrepancies, but the Post Office insisted that there were no system-wide problems with the software.

In 2019 a group of 555 subpostmasters led by Bates won a group action brought in court against the Post Office, with the judge ruling that Horizon contained bugs, errors and defects. The Post Office agreed to settle out of court for £58 million. The subpostmasters' legal costs amounted to £47 million of, leaving them with only about £20,000 each. The government later agreed to supplement the settlement, as they were excluded from the compensation scheme set up by the Post Office for other victims of the scandal. The first convictions to be quashed were those of six subpostmasters who had been convicted in magistrates' courts and whose appeals were heard at Southwark Crown Court in December 2020. In allowing the appeal by 39 subpostmasters in April 2021, the Court of Appeal judges ruled that in cases that relied on Horizon data a fair trial was not possible. Further appeal cases followed.

In September 2020, the government established the Post Office Horizon IT Inquiry, chaired by retired judge Sir Wyn Williams, to look into the implementation and failings of the Horizon system that led to the prosecution of subpostmasters and termination of their contracts. Evidence was due to be heard from subpostmasters, the Post Office, UK Government Investment, the Department for Business and Trade, and others.

A four-part television drama, Mr Bates vs the Post Office, was broadcast on ITV in January 2024, after which the scandal became a major news story and political issue.

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