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Under-pressure Post Office botches hardware procurement in project to replace error-prone system

Pressured decision-making caused mistakes in the Post Office project to replace the system at the heart of national scandal

Mistakes in the Post Office’s plan to replace the controversial Horizon system has left branches facing unplanned renovations and potential shortages of critical hardware.

The Post Office has been under public and political pressure to cut ties with long-time supplier Fujitsu and its controversial software due to the Post Office Horizon scandal, but its New Branch IT (NBIT) project is massively delayed. Despite the replacement being years away, the Post Office is planning to use hardware bought for NBIT to replace existing hardware.

It now faces problems replacing hardware used with the current Horizon system, which is set to stay for years to come.

A source with knowledge of the matter said subpostmasters could be forced to renovate their counters to fit the new hardware, which was not designed for their current setup. There could also be shortages of replacement hardware before NBIT is completed, as support deadlines for existing branch hardware approach.

In May 2022, the project that was set to replace Horizon in 2025 was revealed, but Fujitsu’s contract with the Post Office looks likely to be extended for a further five years, with the supplier set to receive another £180m of taxpayers’ money.

As revealed by Computer Weekly in May this year, the project hit major problems, and the Post Office has requested £1bn of extra public funding from HM Treasury to get the programme back on track.  

Thousands of units of point of sale (PoS) equipment from HP sit in a warehouse. This includes monitors with central processing units built in, keyboards, scanners and printers.

Compatible equipment

A Post Office spokesperson said: “The new hardware will support branches that use Horizon, ensuring they continue to have access to compatible equipment while a replacement system is being developed.”

But according to the source, the hardware is standard equipment, and there was little or no research conducted to see if it would be fit for purpose or even fit on old counters, with the Post Office now considering mounting the hardware on poles on branch counters, which could involve major work in branches.

The Post Office said: “We have procured a range of equipment that will enable us to deploy new hardware to our branch network. These devices include an integrated counter and one that can be mounted in a number of ways to ensure that they fit within the counter space.” The spokesperson added that the company is in the process of surveying branches “to ensure that the configuration we install in each branch is tailored to meet their needs”.

Although the hardware has already been acquired, the spokesperson said the Post Office is now carrying out ergonomic assessments and working with the manufacturer to provide “additional configuration options”.

The source told Computer Weekly there could be a shortage of replacement hardware, with a plan in the Post Office to reduce the number of units in branches - currently about 24,000. The Post Office said: “We have made an initial procurement to support the refresh, the branch survey activity will confirm the full requirements for the entire branch refresh programme.”

The spokesperson said there are no plans to reduce the number of PoS units in “some branches”, but added: “We do monitor the usage of counters in branches and work with branches to remove unused equipment in order to manage the cost of the estate. This is a continual process and one we undertake collaboratively with our subpostmasters.”

Deadlines blamed

The source blamed approaching deadlines on support contracts for existing hardware and software for “bad decisions”, and said political pressure is moving timelines.

The Post Office said it’s still working on a deployment plan, and may introduce the new counters as replacements for current hardware that fails as an interim step later this year.

Last month, the Post Office announced it was bringing in a new technology leader as it awaits funding for the troubled project. Former chief transformation officer Chris Brocklesby has left as his one-year contract expired, and has been succeeded on an interim basis by Andy Nice, formerly transformation director at Camelot, the company that ran the National Lottery until January 2024.

The use of Horizon and the contract with Fujitsu is expected to be extended for years. As Computer Weekly revealed, the Post Office is seeking a five-year extension with Fujitsu that would take the relationship to 2030.

The Post Office scandal was first exposed by Computer Weekly in 2009, revealing the stories of seven subpostmasters, including Alan Bates, and the problems they suffered due to accounting software. It’s one of the biggest miscarriages of justice in British history (see below timeline of Computer Weekly articles about the scandal since 2009).


• Also read: What you need to know about the Horizon scandal

• Also watch: ITV’s documentary – Mr Bates vs The Post Office: The real story

• Also read: Post Office and Fujitsu malevolence and incompetence means huge taxpayers’ bill


Timeline: Computer Weekly articles about the scandal since 2009

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