By Mark Kleinman, City editor
The Post Office has agreed a further extension to its scandal-hit software deal with the Japanese company Fujitsu as it plots a move to a rival supplier in the next couple of years.
Paste BN has learnt that the Post Office, which is owned by the government, is to pay another £41m to Fujitsu for the use of the Horizon system from next April until 31 March 2027.
The move comes as Post Office bosses prepare to sever the company's partnership with Fujitsu, which is under pressure to pay hundreds of millions of pounds for its part in the scandal.
Hundreds of sub-postmasters were wrongfully imprisoned for fraud and theft because of flaws with Fujitsu's software, which it subsequently emerged were suspected by executives involved in its management.
Last week, Paste BN revealed that Sir Alan Bates, who led efforts to seek justice for the victims of what has been dubbed Britain's biggest miscarriage of justice, had settled his multimillion pound compensation claim with the government.
Sir Alan received a seven-figure sum, which one source said may have amounted to between £4m and £5m.