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Marketplace All-in-One

Britain's Post Office pays millions for a faulty system

Marketplace All-in-One

Marketplace

News, Business

4.81.3K Ratings

🗓️ 25 April 2025

⏱️ 8 minutes

🧾️ Download transcript

Summary

From the BBC World Service: The U.K.'s Post Office continues to pay millions of dollars to use the bug-ridden Horizon IT system, whose failings resulted in hundreds of wrongful fraud convictions. We'll unpack why the Post Office has failed to switch systems yet. Then, India revokes visas and Pakistan halts trade after a deadly attack in Indian-administered Kashmir. Plus, we'll examine the rise in the price of gold.

Transcript

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0:00.0

Britain's post office pays millions more to stay shackled to a faulty system. Live from the UK,

0:07.8

this is the Marketplace Morning Report from the BBC World Service. Hello, I'm Nick Qureshi in Fort Leanna

0:12.6

Burn. You might remember the UK post office scandal where hundreds of post office managers were

0:18.2

accused of fraud because they couldn't balance the books.

0:26.6

Some were even sent to jail, but they were innocent. It was all down to a faulty IT system developed by computer giant Fujitsu. Well, now the BBC's calculated the post office has spent

0:32.1

more than $800 million to continue using the faulty horizon system since attempting to end its contract

0:39.2

more than a decade ago. The BBC's Peter Ruddick has been following this for us. Hello Peter.

0:44.7

Hi Nick. Just remind us of the role this system has still has to this day.

0:49.5

Absolutely. It might be a real surprise for people that the IT system, essentially partly

0:54.0

responsible for the

0:54.9

wrongful prosecution of hundreds of sub-postmasters and many more who were pursued wrongly for

1:00.2

money they were told they owed is actually still in place in the post office. To understand this,

1:05.0

you have to rewind back a bit to the turn of the millennium when the post office in the UK started

1:10.0

doing more and more things

1:11.3

than just sending letters. You could absolutely buy stamps from the post office, but you would also

1:16.3

go there to get your welfare benefits, or you might be managing your bank account from in store. And that

1:22.2

meant that a system was needed to deal with all of these transactions to log them, a point of

1:27.4

sale and an accounting

1:28.6

system. And that's where Horizon came in. The trouble is, as soon as it was introduced, it came

1:34.7

with issues. And Fujitsu, its owners, because it just rented the system to the post office,

1:39.9

they never bought it outright. Fujitsu didn't fix the bugs or weren't quick enough in identifying issues,

1:46.3

and that's when the wrongful data was used to pursue people.

...

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