Post Office agrees fresh extension to scandal-hit Fujitsu Horizon deal

The Post Office has agreed a further extension to its scandal-hit software deal with the Japanese company Fujitsu as it plots a move to a rival supplier in the next couple of years.

Sky News has learnt that the Post Office, which is owned by the government, is to pay another £41m to Fujitsu for the use of the Horizon system from next April until 31 March 2027. The move comes as Post Office bosses prepare to sever the company's partnership with Fujitsu, which is under pressure to pay hundreds of millions of pounds for its part in the scandal.

Money latest: BA partnership with Musk's Starlink Hundreds of sub-postmasters were wrongfully imprisoned for fraud and theft because of flaws with Fujitsu's software, which it subsequently emerged were suspected by executives involved in its management. Last week, Sky News revealed that Sir Alan Bates, who led efforts to seek justice for the victims of what has been dubbed Britain's biggest miscarriage of justice, had settled his multimillion pound compensation claim with the government.

Sir Alan received a seven-figure sum, which one source said may have amounted to between £4m and £5m. In a statement issued in response to an enquiry from Sky News, a Post Office spokesperson said: "The Post Office has agreed with Fujitsu a one-year bridging extension to the Horizon contract for the period 1 April 2026 to 31 March 2027.

"We are committed to moving away from Fujitsu and off the Horizon system as soon as possible. "We are bringing in a different supplier to take over Horizon whilst a new system is developed, and this process is well underway.

"We expect to award a contract for a new supplier to manage Horizon by July 2026, according to current timelines." Fujitsu executives have acknowledged that the company has a "moral obligation" to contribute financially as a result of the Horizon scandal, but has yet to agree a final figure with the government. It is said to be unlikely to do so until the conclusion of Sir Wyn Williams' public inquiry.

The Department for Business and Trade has been contacted for comment..