Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Between 1997 and 2000 the Post Office implemented a new IT system called Horizon.
Conclusion
Between 1997 and 2000 the Post Office implemented a new IT system called Horizon. This system is now known to be responsible for accounting discrepancies that suggested, for example, shortfalls of cash in Post Office branches.62 At the time, the Post Office considered some of these shortfalls to be caused by branch staff such as postmasters, resulting in dismissals, attempts to recover apparent losses, and in some cases prosecutions. Such actions had terrible personal and financial consequences for honest, hard-working staff, wrongly accused of misconduct and crime. In May 2020 the Post Office set up the Horizon Historical Shortfall Scheme to compensate staff who may have experienced cash shortfalls reported by the Horizon system through the normal course of their duties, and repaid shortfalls from their own funds.63
Government Response
Not Addressed
HM Government
Not Addressed
6.4 The Horizon scandal has had a devastating impact on postmasters and their families. It is right that affected postmasters are properly compensated and, without government funding, the compensation would have been unaffordable to Post Office. To form part of the going concern assessment for Post Office’s financial statements, BEIS issued letters of comfort to assist the Post Office Board in maintaining its view that the company continues to be able to meet its liabilities. The government will share letters with the Committee from BEIS to Post Office, providing assurances for the Historical Shortfall Scheme, interim and full payments for those with overturned criminal convictions. Further letters will be shared with the Committee at the earliest opportunity.