The Post Office’s shift in behavior following the introduction of computerized branch accounting software in 1993 corresponds with a surge in prosecutions six years later, coinciding with the rollout of the contentious Horizon system.
The lives of subpostmasters were irrevocably altered as the Post Office attributed unexplained accounting discrepancies solely to them, while these discrepancies stemmed from the flawed Horizon accounting system used in the branches. Former users of Horizon’s predecessor, Capture, have been campaigning for justice since January, spurred by ITV’s dramatization of the scandal which highlighted their own experiences of similar issues.
Analysis of Post Office prosecution data shows troubling parallels in how the Post Office dealt with users of both Horizon and Capture who reported unexplained financial losses. According to a Freedom of Information (FOI) request, in the six years preceding the launch of the Capture system, investigations into subpostmasters regarding account shortfalls rarely exceeded five per year. In 1992, there were seven investigations, and this number increased to 11 in 1993. However, in the subsequent six years, investigations skyrocketed to an average of 191 each year, peaking at 378 in 1998.
This trend mirrors the spike in the number of subpostmasters convicted for financial offenses following the Horizon system’s inception in 1999. Data from a separate FOI request in 2020 revealed that, on average, only six subpostmasters were convicted annually in the seven years leading up to Horizon’s introduction. In stark contrast, this figure jumped to an average of 52 per year over the following 13 years, until prosecutions ceased in 2013.
While the introduction of Capture did lead to an increase in prosecutions, this was marginal compared to the significant rise in investigations. Yet, the obligations imposed by the Post Office dictated that subpostmasters with unexplained shortfalls had to cover the losses personally, or risk losing their contracts or facing prosecution.
The scandal came to light in 2009 through a report by Computer Weekly, which detailed the experiences of seven subpostmasters and the catastrophic impacts of Horizon software—marking it as one of the most significant miscarriages of justice in British history.
Horizon is a complex networked system integrated with centralized Post Office services that all subpostmasters are mandated to use. In contrast, the Capture system was a desktop application developed by the Post Office, requiring subpostmasters to upload it to their own computers for accounting. Many users referred to Capture as a “glorified spreadsheet,” and over 1,500 subpostmasters utilized it.
In January, Computer Weekly reported that several former Capture users had come forward, claiming they were prosecuted for financial shortfalls directly linked to the software. Former MP Kevan Jones, now a member of the House of Lords, has championed the cause of those affected by the Horizon scandal, as well as advocating for subpostmasters who experienced losses and subsequent criminal charges due to Capture errors.
Amid mounting pressure, the government has ordered a forensic investigation into Capture by specialists Kroll. The report is currently with the government, and its imminent release is highly anticipated.
Neil Hudgell, a solicitor representing approximately 40 former Capture users, expressed optimism that the report will bolster his clients’ claims.
Steve Marston, who in 1996 faced prosecution for theft and false accounting due to an unexplained shortfall nearing £80,000 in his Bury, Lancashire branch, shared his experience. Having successfully run his branch since 1973 with a paper-based system, complications arose only after transitioning to Capture. Despite covering losses himself, the situation deteriorated, leading to an audit where he was unable to fully reconcile the losses. He was advised to plead guilty to theft and fraud to avert imprisonment. Ultimately, a judge considered his previous bravery awards, allowing him to avoid jail time, but he nonetheless lost his home, business, and faced bankruptcy.
“Are we truly expected to believe that all of a sudden, honest and diligent subpostmasters, who have invested significantly in their businesses, became dishonest simultaneously?” Marston questioned, citing the alarming increase in investigations after Capture’s introduction.
He believes that the data presented in the latest FOI response is a clear indictment of Capture’s disastrous impact. Marston, who is set to meet with government officials next week to discuss the Capture issue, remains focused on attaining justice as the government prepares to release the Kroll report.
In June, Computer Weekly revealed another similarity between Capture and Horizon: inadequate training. Subpostmasters who operated the Capture software reported a lack of training from the Post Office, an issue echoing the failures associated with the Horizon scandal. Although a Post Office document from 1995 mentioned training protocols, many former subpostmasters indicated they received no instructional support while grappling with the issues related to Capture. The Horizon system also suffered from similar training deficiencies.
Computer Weekly has reached out to the Post Office for a response regarding these matters.
The Post Office scandal was initially uncovered by Computer Weekly in 2009, prompting investigations into the experiences of seven subpostmasters affected by the Horizon accounting software, which has since been recognized as one of the most profound miscarriages of justice in British history.
• Also read: What you need to know about the Horizon scandal
• Also watch: ITV’s documentary – Mr Bates vs The Post Office: The real story
• Also read: Post Office and Fujitsu malevolence and incompetence leads to substantial taxpayer costs