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press notice
P/99/439 24 May 1999
GOVERNMENT CONFIRMS FUTURE OF HORIZON PROJECT
The Government today reached agreement in principle with ICL about the continuation
of the Horizon project to computerise the Post Office network and automate the
payment of benefits.
The project initiated by the last admimistration, has suffered considerable delays and
set-backs. It is now running three years late. When these delays became apparent, the
Government commissioned a major review of the project to decide the best route
forward given its huge importance to the approximately fifteen million people who
collect their benefit cash from post offices, the twenty eight million customers of the
Post Office, and more than 17,000 Sub-Post Masters and others who keep over 18,000
offices running.
Against the background of this delay all parties were concemed to review the project’s
future and find a positive way forward, We have done this and today new agreements
have been signed by ICL, Post Office Counters Ltd. and DSS/Benefits Agency.
The changes to the Horizon project are aimed to put it on a sustainable footing for the
future and allow the Post Office to move as quickly as possible to the computerisation
of post office counter services.
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Department of Trade and Industry 1 Victoria Street London SW1H OFT Fax 0171-222 4382
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The main elements of the agreement are:
* first, we will be moving forward as planned, as quickly as possible with the
automation of Post Office Counter services, For the first time ever, Post Offices will
have an up to date automation platform, helping them to provide a better service to
their customers, and representing a major investment in the future of the nationwide
network of Post Offices,
© We have agreed with ICL to remove the magnetic strip benefit payment card from
the project, Given the delays this is now an outdated concept and the Banks among
others are already moving away from magnetic strip in favour of the next generation
technology - the smart card. For the future we intend to move from the traditional
paper based methods of payment to a more modern and efficient way of paying
benefits through the Post Office network, building on banking technology. POCL
and DSS/BA will be working together on plans to introduce the new arrangements
in 2003, The Government can give an assurance that those benefit recipients who
wish to collect their benefits in cash at post offices will continue to be able to do so.
¢ in the interim, we will be-using bar-coding on order books to tackle benefit fraud.
This will provide savings of around £100m a year, a saving originally promised by
the last administration but not yet delivered:
« We and ICL believe the target of achieving the computerisation of the network of
18,000 Post Offices by the end of 2001 is more realistic. This will give customers a
better service and help to secure a viable future for the network of Post Offices.
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Commenting on the agreement, Stephen Byers, Secretary of State for Trade and
Industry said:
“This is good news, the Government has put this project back on track. It will deliver
the long overdue computerisation of the Post Office network in partership with ICL
and major reductions in benefit fraud.
“The Post Office will now be looking at how we can use state of the art technology
and the network of post offices to offer banking services for high street banks, together
with on-line Government services and information, and at opportunities for taking this
forward in partnership with the private sector.
“This represents an important part of our Modernising Government agenda, bringing
government closer to the people.
“We have moved a major step closer to our vision of a modem, thriving nationwide
network of Post Offices for the 21st Century.”
Alastair Darling, Seerétary of State for the Department of Social Security, said:
“I am very pleased that after much hard work and careful consideration by everyone
concemed, we have reached a position to which all parties can commit. For my
Department, and the customers it serves, this new approach will open up the way for
moving to a modem system of paying benefits, which will build on the latest
technology, and exploit the huge savings that this can bring.
“This Government remains firmly committed to providing a secure, safe and
convenient method of paying benefits, And in the interests of tax payers, to ensure that
the way we deliver help to those who need it is done in the most effective way.”
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Notes to Editors
I A copy of the Parliamentary Question is available from DTI Press Office.
Press Enquiries: 0171 215 5981/5965
(Out of Hours: 0171 215 $110/5600)
Public Enquiries: 0171 215 5000
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Internet address: http://www.dti.gov.ak