MPs might be unintentionally going straightforward on tech ‘parasite’ in Submit Workplace scandal invoice
The determine being bandied about for the price of the Submit Workplace scandal is decreasing expectations on Fujitsu, as a result of it doesn’t embrace lots of of thousands and thousands of kilos in prices past the £1.8bn invoice for compensating subpostmasters.
Described as a “parasite” on the UK authorities by Enterprise and Commerce Choose Committee chair Liam Byrne MP, Fujitsu, which rakes in lots of of thousands and thousands of kilos’ price of presidency contracts every year, faces a considerable invoice for its central position within the Submit Workplace scandal. Nonetheless, the invoice is unlikely to totally replicate the price of its actions and inaction.
Fujitsu’s inaction is evident. It failed to talk out about Horizon issues in assist of the Submit Workplace’s place that there weren’t any, however it took motion when the Submit Workplace requested it to present proof in court docket to assist its wrongful prosecutions of subpostmasters, which had been primarily based on knowledge from Horizon.
Amid all of this, Fujitsu has made billions of kilos by means of the Horizon undertaking that has run for practically 30 years. To not point out numerous different profitable authorities contracts. Byrne mentioned that by means of its refusal to pay something to this point, the IT provider is behaving like a “parasite” on the British state.
However as the federal government prepares to serve the Japanese IT large with a invoice for its contribution to the scandal, MPs’ concentrate on the £1.8bn determine for subpostmaster compensation might decrease expectations.
Throughout a Enterprise and Commerce Choose Committee listening to, this determine was referred to continuously when Fujitsu’s European boss, Paul Patterson, was questioned concerning the firm’s monetary dedication.
Byrne requested how a lot of the £1.8bn Fujitsu would pay.
Patterson and onlookers would possibly take from the assembly that the quantity Fujitsu pays might be a proportion of the £1.8bn, however general prices are a lot increased.
In March 2024, Byrne mentioned Fujitsu ought to pay half the prices. However half of what? If we’re speaking a share of prices, it’s important that every one the prices are taken into consideration and never simply the price of subpostmaster compensation.
If the Submit Workplace and Fujitsu are equally guilty and should pay half every, which, making an allowance for subpostmaster compensation solely, that’s £900m every. That’s an eyewatering determine, however not practically as eyewatering as the entire price of the scandal. Even including a number of the simply quantifiable prices, it’s clear that taxpayers have paid lots of of thousands and thousands of kilos extra.
Taxpayers on the hook for extra
The Submit Workplace’s authorized prices on account of the scandal exceed £250m. Then there are the general public inquiry prices, which add as much as about £50m, and the nationwide police investigation into the scandal prices, which additionally equate to round £50m.
The Legal Instances Overview Fee’s vital work prices the taxpayer cash. And the Submit Workplace’s restructuring meant hiring and firing – folks have been let go at a value (often excessive within the public sector), and other people have been employed at a value.
Then there are the prices related to the IT upheaval that has occurred following the choice to dump Horizon, which triggered the scandal. Alternative initiatives have come and gone, as has thousands and thousands of kilos of taxpayers’ cash, with nothing to point out for it.
For instance, the Submit Workplace’s New Department IT (NBIT) undertaking to roll out an in-house system was scrapped – after thousands and thousands of kilos had been spent on it. The undertaking was canned after a authorities report final yr discovered that budgets had ballooned from £180m to £1.1bn, with implementation delayed by as a lot as 5 years.
Prices associated to Horizon issues return a lot additional, nevertheless. Final yr, Pc Weekly revealed that the Submit Workplace paid IBM about £10m when it deserted a Horizon alternative undertaking in 2015.
As we stand right this moment, by way of the Submit Workplace’s present Horizon alternative plan, it is going to pay practically half a billion kilos in whole for continued Horizon assist, probably till 2033 (Lot 1), and a 12-year contract with a brand new system supplier (Lot 2).
Even the £1.8bn determine for monetary redress is more likely to develop. It has already. In January 2022, Pc Weekly broke information that the authorities put aside £1bn to settle monetary claims, however issues have modified for the reason that Submit Workplace scandal grew to become well-known.
Parasitic relationship
Through the current Enterprise and Commerce Choose Committee listening to, Fujitsu was described as a “parasite” on the UK state, raking in billions of kilos of taxpayers’ cash.
Fujitsu’s Patterson repeatedly acknowledged that the provider wouldn’t decide to a determine till Submit Workplace scandal inquiry chair Wyn Williams had made his ultimate report and apportioned blame.
Patterson mentioned Fujitsu will not be a parasite on the British state and steered the federal government can stroll away from contracts at any time. Other than the truth that everyone knows enormous, multi-year, even multi-decade, IT contracts, significantly within the public sector, are troublesome to interrupt away from.
Moreover, parasitic relationships in the primary see the parasite feed off and hurt the host, however there are additionally situations the place there’s some mutual profit. Might this be stopping the federal government from ditching Fujitsu or forcing it to pay extra?
Fujitsu has not precisely been squeaky clear for the reason that ITV drama put its malfeasance entrance and centre of public debate. It made a “hole gesture” in promising to not bid for public sector contracts till the Submit Workplace scandal public inquiry report, however this was so weighed down with caveats that the provider continues to empty the general public purse.
Moreover, in April 2024, simply weeks after imposing a public sector bidding ban on itself, Pc Weekly revealed {that a} senior chief at Fujitsu was instructing employees on how one can get across the self-imposed restrictions.
Then, in October 2025, Pc Weekly revealed that earlier in 2025, simply after Wyn Williams printed his first “profoundly disturbing” public inquiry report, which included a suggestion that the scandal had prompted 13 suicides, a senior Fujitsu government instructed employees the report was “not that unhealthy”.
Not that unhealthy for Fujitsu, possibly. You couldn’t make it up.
Through the Fujitsu assembly in July final yr, the senior Fujitsu government instructed colleagues it will most likely be one other yr the place Fujitsu doesn’t “aggressively” go for brand spanking new public sector enterprise. Only a yr of ache?
Time to take accountability
I’ll shut with feedback made in October by campaigning peer James Arbuthnot, who on the time demanded Fujitsu pay £700m within the interim.
He mentioned it was no shock that Fujitsu is ready till the final attainable second earlier than responding. “It ought to cease kicking the can down the highway,” he mentioned.
“Fujitsu has prompted nice hurt to hundreds of individuals, and may pay a large amount to compensate for this. It’s true that others had been additionally guilty – Submit Workplace managers, the authorized system, accountants and the federal government. However the Horizon system was Fujitsu’s, and it was Fujitsu which was altering the subpostmasters’ accounts behind everybody’s backs and saying that it was not doing so,” added Arbuthnot.
“Fujitsu then colluded with the Submit Workplace in securing miscarriages of justice,” he mentioned. “I consider that it ought to pay half of the prices of this complete dreadful matter, together with half of the redress for the subpostmasters and half of the prices of the inquiry. An interim fee now of £700m would possibly start to revive its repute, however that must be a long-term course of, not helped by its silence thus far. It’s in its pursuits to be proactive about this if it needs to be in good grace with the British folks.”
