London Daily

Focus on the big picture.
Wednesday, Mar 25, 2026

Failures in scandal-hit Post Office IT system were raised to Tony Blair's government, inquiry hears

Failures in scandal-hit Post Office IT system were raised to Tony Blair's government, inquiry hears

A briefing from the Treasury to the then prime minister outlined a "list of failures" in relation to the rolling out of the system, a hearing has been told.

Senior officials in Tony Blair's government were aware of the technical issues with the Horizon post office computer system, the inquiry into the IT scandal has heard.

Between 2000 and 2014, more than 700 sub-postmasters and sub-postmistresses (SPMs) were prosecuted based on information from the accounting system.

Since then, many have had criminal convictions overturned - and millions of pounds in compensation has been awarded.

On Tuesday, Jason Beer KC, counsel to the inquiry, referred to a briefing from the Treasury in 1998 to then-prime minister Tony Blair which outlined a "list of failures" in relation to the rolling out of the system.

That briefing stated independent reviews of the Horizon project by external IT experts had concluded its accounting system, known as ICL Pathway, had failed, and that "we are failing to meet good industry practice in taking this project forward".

The list showed that out of nearly 16 million people who should have been paid by a benefit payment card, only 30,000 were actually being paid.

It also stated delays to the programme had cost the government more than £200m in savings they would otherwise have expected to make.

The opening of the inquiry's phase two was delayed after Mr Beer raised an issue about Post Office Ltd's disclosure to the hearing.

The Post Office, he said, had notified it was "undertaking a significant organisation and review of a large number of boxes of hardcopy documents and files held at various Post Office locations throughout the UK".

Mr Beer noted that having to begin the second phase of the inquiry with a discussion on problems around disclosure was "something of a paradox, if not a matter which is dripping in irony", when one of the central issues in the probe was the Post Office's "past non-disclosure to the criminal and civil courts".

Lawyers for the victims of the scandal called for an adjournment.

The "List of Failures" sent to Tony Blair’s office.


'Their lives have been dogged'


"The Post Office has denied sub-postmasters and mistresses any choice in their lives," said Sam Stein KC, representing more than 150 of the participants.

"They demanded of them investment, demanded of them application of their work, they demanded with them that they comply with a contract that effectively said that they must pay up no matter whose fault it is.

"They then, of those individuals, prosecuted them for the civil courts and criminal courts and many went to prison. Their lives have been dogged by lack of choice by the Post Office.

"It is a significant matter that we ask you to take into account, Sir, and that their choice is to adjourn."

More than 700 people were accused of fraud or theft


Kate Gallafent KC, for the Post Office, said the company "emphatically" denies any allegation it has deliberately sought to make late or partial disclosure of relevant documents.

Chair of the inquiry Sir Wyn Williams concluded it should proceed as planned, as he was "satisfied that I can manage disclosure" and having considered the "significant impact" any further delay would have on the inquiry's timetable.

Newsletter

Related Articles

0:00
0:00
Close
Trump Signals Frustration with UK Leadership Amid Diverging Approaches to Iran Conflict
UK Government Takes Control of Hunterston B as Landmark Nuclear Decommissioning Begins
UK Public Inflation Expectations Jump Sharply in March, Raising Pressure on Bank of England
UK Ministers Warn Expanded North Sea Drilling Would Deepen Exposure to Global Energy Volatility
Delayed UK Defence Investment Plan Leaves Suppliers Under Severe Financial Strain
Can Iran Strike the UK? Assessing the Real Military Threat as Conflict Escalates
Sanctioned Iranian Banker Linked to Luxury Marbella Villa Through UK Corporate Structure
Casey Bloys Navigates HBO Max UK Launch, Paramount Integration and Industry Buzz Over Netflix Meeting
Iran Conflict Sparks Sharp Turbulence in UK Mortgage Market, Reaching Pandemic-Era Disruption Levels
Major Donor Urges University of Kentucky to Reconsider Mitch Barnhart’s Post-Retirement Role
United Kingdom Moves to Lead International Effort to Reopen Strait of Hormuz
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
Senior UK Advocate Criticises Barnhart Retirement Appointment, Calls for Reconsideration
UK Finds No Evidence of Direct Iranian Threat to Britain, Says Prime Minister Starmer
Assessing Iran’s Strike Capability and the UK’s Readiness Amid Rising Tensions
NATO Unable to Confirm Iran’s Role in Strike on UK-US Base as Tehran Denies Involvement
University of Kentucky’s Youling Xiong Receives SEC Faculty Achievement Award for 2026
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
Duchess of Sussex Secures ‘As Ever’ Trademark Rights in Australia Ahead of High-Profile Visit
UK Reaffirms Security as Officials Reject Claims of Immediate Iranian Missile Threat
Rising Middle East Tensions Spark ‘Trumpflation’ Debate Over Impact on UK Households
UK Minister Says No Evidence Iran Can Strike Europe Despite Heightened Warnings
British-Iranians Voice Safety Concerns to Authorities as Regional Conflict Intensifies
Confirmed Meningitis Cases Linked to Kent Outbreak Revised Down to Twenty
UK Government Sees No Evidence Iran Can Strike London Amid Rising Regional Tensions
Debate Grows Over Recognition of Indigenous Cultural Icons in the United Kingdom
Iran Missile Launch Toward Diego Garcia Raises Questions After Failed Strike on US–UK Base
Donald Trump Amplifies Viral Satirical Clip Highlighting UK–US Political Dynamics
UK Satirical Show Draws Attention with Sketch Referencing Trump and Prince Andrew
Meghan Markle’s Possible UK Return Sparks Renewed Attention on Sussex Role
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
Northern Lights Expected Over UK Skies Tonight Amid Strong Solar Activity
UK Condemns Iran Missile Strike and Warns Against Threats to British Personnel
UK Warns of Global Flight Disruptions as Iran Conflict Escalates Under Trump’s Leadership
UK Condemns Iran After Missile Strike Targets Strategic Diego Garcia Base
Deadly Meningitis Outbreak in UK Reinforces Urgency of Vaccination Campaigns
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
UK Rules Out Cyprus Base Role in Joint US Self-Defence Framework
UK Ends Hereditary Peerage Rights in Parliament in Historic Constitutional Reform
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
×