Horizon (IT system)


Horizon is the name for a computer system used by part of the United Kingdom's postal service, Post Office Ltd. In 2013 the system was being used by at least 11,500 branches, and was processing some six million transactions every day. It has come under criticism since at least 2000 for errors in the system which, according to press reports, may have caused the loss of dozens of jobs, unwarranted prison sentences, bankruptcies, and one documented suicide.

Purpose and design

The system cost £1 billion and was designed by ICL/Fujitsu Services. According to Post Office Ltd, the name Horizon encompasses:
The system was originally introduced in 1995 on a pilot basis in a small number of Post Offices, alongside a joint work programme between the Department of Social Security's Benefits Agency and Post Office Counters Ltd. The objective of this programme was to provide an automated system for making benefits payments through Post Offices and thereby reduce fraud.
At the Conservative Party conference in October 1995, the social security minister Peter Lilley brandished a smartcard as the intended replacement for the benefit book, declaring that, with the Benefits Agency and ICL, Post Office Counters Ltd would install smartcard reading terminals at every branch, through a private finance initiative to be delivered under a commercial contract. At the time smartcards were under consideration as part of the full system, but a final choice of technologies had not been made.
After a lengthy competitive procurement exercise which began in late 1994, the contract for further development and full implementation in all Post Offices was awarded in May 1996 to ICL's Pathway division, which had been created for the purpose. ICL later became part of Fujitsu.
In 1999, four years and £700m of taxpayers' money after the pilot scheme began, the Government, by now Labour, stopped the scheme in its tracks. The Department of Social Security withdrew from the deal, leaving ICL/Fujitsu to run the system. ICL has since criticised the PFI payment criterion: it would have been paid partly on how many customers Post Offices attracted. "Looking back, I think it was over-ambitious," said Stuart Sweetman in 2001, as the then group managing director of customer and banking services for Consignia, the name used at the time for Post Office Counters Ltd. "You can't export all the risk to a supplier."

Problems

Problems with the system were first reported by Alan Bates, the sub-postmaster at Craig-y-Don, in around 2000, he reported his concerns to Computer Weekly in 2004, who finally gathered sufficient evidence to publish them in 2009. A campaign group on the issue, Justice for Sub-postmasters Alliance was formed by Bates and others in September 2009.

Initial Post Office Ltd investigation

An initial investigation failed, at first, to find the cause of the problems. As a result, an independent investigative firm Second Sight were brought in to conduct a separate, independent inquiry, in 2012. At around this time, Paula Vennells became CEO of the Post Office.

Second Sight report

In July 2013, Post Office Ltd admitted that software defects with Horizon had indeed occurred, but that the system was effective. The review discovered problems in 2011 and 2012, when Post Office Ltd discovered defects which had caused a shortfall of up to £9,000 at 76 Post Office branches. However, more than 150 sub-postmasters continued to raise issues with the system, which they claimed had, by error, put them in debt by tens of thousands of pounds, and that in some cases they lost their contracts or went to prison.
The report – which was treated as confidential – described the Horizon system as, in some cases, "not fit for purpose". The lead investigator for Second Sight claimed that there were about 12,000 communication failures every year, with software defects at 76 branches and old and unreliable hardware. The system had, according to the report, not been tracking money from lottery terminals, tax disc sales or cash machines – and the initial Post Office Ltd investigation had not looked for the cause of the errors, instead accusing the sub-postmasters of theft The report was dismissed by the Post Office. However, it was leaked to the BBC in September 2014. The BBC's article on the report also said that training on the system was not good enough, that "equipment was outdated", and that "power cuts and communication problems made things worse".
Post Office Ltd then went into mediation with the affected sub-postmasters. By December, however, MPs had criticised Post Office Ltd for how it handled the sub-postmasters' claims, and 140 of those affected had withdrawn their support for the Post Office-run mediation scheme. 144 MPs had been contacted by sub-postmasters about the issue, and James Arbuthnot, the MP leading on the matter, accused the organisation of rejecting 90% of applications for mediation. Post Office Ltd said that the claims by Arbuthnot were "regrettable and surprising". Arbuthnot further claimed that Post Office Ltd had been "duplicitous", and said that:
In February 2015, ComputerWorld UK, a UK trade magazine for IT managers, reported that Post Office Ltd were obstructing the investigation by refusing to hand over key files to Second Sight. Post Office Ltd claimed in the Business, Energy and Industrial Strategy Committee hearing of 3 February 2015 that they "have been working with Second Sight over the last few weeks on what we agreed at the outset. We have been providing the information.", but the lead investigator for Second Sight, when asked by Adrian Bailey if that were the case, said "No, it is not.", as he had not been given access to prosecution files, which he needed to back up his suspicions that Post Office Ltd had brought cases against sub-postmasters with "inadequate investigation and inadequate evidence". He said that these files were still outstanding eighteen months after they had been requested.

Investigation cancelled

In March 2015, Private Eye and other sources reported the news that Post Office Ltd had ordered Second Sight to end their investigation just one day before the report was due to be published, and to destroy all the paperwork which they had not handed over. Post Office Ltd then scrapped the independent committee set up to oversee the investigation, as well as the mediation scheme for sub-postmasters, and published a report which cleared themselves of any wrongdoing.
Of the 136 cases, 56 had been closed, and Post Office Ltd would put the rest forward for "mediation" unless a court ruling prevented them from doing so. After ending the inquiry, Post Office Ltd said that there were no widescale problems, and that:

Civil action

In 2019, class action civil litigation, Bates & Ors v Post Office Ltd, brought by 550 sub-postmasters was settled by the Post Office. Significant fees for counsel, repayment of legal financing, and payment of the legal financing "success fee" will be deducted from the £58 million settlement.
Mr Justice Fraser, the judge overseeing the civil action noted that the approach of the Post Office to the case:
Vennells subsequently apologised to workers affected by the scandal, saying:
In March 2020 the Criminal Cases Review Commission has so far decided to refer for appeal the convictions of 39 Post Office applicants. The Commission will be referring all those cases, which involve convictions for theft, fraud and false accounting, on the basis of the argument that each prosecution amounted to an abuse of process. In May 2020 the Criminal Cases Review Commission has decided to refer a further eight Post Office workers’ convictions for appeal – this brings to 47 the number of cases to be sent for appeal so far on grounds related to the Horizon computer system.

Possibility of criminal action

In December 2019, The Register reported that Mr Justice Fraser would be passing a file on to the Director of Public Prosecutions. A number of cases are under review by the Criminal Cases Review Commission raising the possibility of actions for malicious prosecution.
Arbuthnot, by now sitting in the House of Lords as Baron Arbuthnot of Edrom, said in November 2019:

Other enquiries

Evidence about the case was also heard by Parliament's 'Business, Energy and Industrial Strategy Committee' on 10 March 2020.
In February 2020, Prime Minister Boris Johnson committed to an independent inquiry.
On 19 March 2020, in a debate in the House of Commons, Kevan Jones MP criticized former Post Office CEO, Paula Vennells, for her role in the scandal.
In a written ministerial statement on 10 June 2020 Paul Scully announced the scope of the Independent Review into the Post Office Horizon IT System and Trials.

Individual cases