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Alice Moore, Assistant Professor in Public Management and Public Policy, University of Birmingham

Post Office Horizon scandal: four reasons why the government's model for outsourcing is broken

For over a decade, the Post Office and its supplier, Fujitsu, insisted that the Horizon system used in its branches was completely “robust”. When discrepancies appeared in hundreds of branch accounts across the country, the Post Office refused to believe the system was at fault and didn’t challenge the information it got from Fujitsu. Instead, it blamed the shortfalls on sub-postmasters, made them pay the losses, and prosecuted over 700 of them.

The multimillion-pound contract between the Post Office and Fujitsu is at the heart of the scandal. The way the contract worked meant that Fujitsu was incentivised to fix bugs quickly rather than well. The Post Office didn’t have the expertise it needed to understand what was going wrong. The Post Office’s dependence on Fujitsu also meant that it protected its relationship with them at the expense of sub-postmasters and the public.

The problems with the Horizon contract underpin one of the most widespread miscarriages of justice in UK history. But they are also replicated across thousands of other government contracts, including for many essential services, from hip replacements on the NHS to school PE lessons.

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