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IN STRICTEST CONFIDENCE AND SUBJECT TO LEGAL PRIVILEGE
Horizon Issues Judgment
Draft Communications Plan
CONTENTS
Introduction 5
Purpose of this document 5
Context 5
Risks 6
Worst case scenario hostile narrative 6
Strategic objectives 7
Core script 8
Topline 8
Tone of voice 8
Core messages 8
Overarching handling approach 9
Handling timeline 10
Handling different stakeholders 15
Media 16
Context 16
Handling approach 16
Collateral 19
Draft media statement 19
Core media Q&A 22
Reactive lines in case of network disruption 33
Political audiences 34
Context 34
Handling approach 34
Collateral 36
Letter to relevant former MPs 36
Postmasters
Context
Handling approach
Collateral
Postmaster Q&A
Speaking brief for colleagues speaking to Postmasters (pre-judgment)
Speaking brief for colleagues speaking to Postmasters (post-judgment)
Branch closures: Asking a Postmaster to re-open
We will contact you again in the next few days to agree next steps with you.
Memoview
Branch hub message
IVR message
ONE update email
ONE story
Branch support guide
ONE business update special (worst case scenario)
Corporate clients
Context
Handling approach
Collateral
Email to clients
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38
38
39
39
58
61
63
65
66
67
68
70
71
73
75
78
78
78
78
79
Speaking brief for colleagues engaging with clients/commercial partners/colleagues (pre-
judgment)
Speaking brief for colleagues engaging with clients/commercial partners etc (post-
judgment)
Client Q&A
Customers
Context
Handling approach
Collateral
Customer Service team brief
Customer Q&A
Post Office colleagues
Context
81
86
88
90
90
90
90
91
92
93
93
Handling approach
Collateral
PO fact sheet
Horizon factsheet
GLO factsheet
NR email to colleagues
Email invite to L300 call
L300 call script
Postmaster onboarding team - email & call script in case of PM queries
Branch Support Centre/IT helpline brief
Customer Service team brief
Email to Grapevine, King Security, Telco helpdesk
HR Service Centre email brief
Unions
Context
Handling approach
Collateral
NFSP - Core verbal script
CWU/Unite core verbal script
Suppliers
Context
Handling approach
Fujitsu
Other Suppliers
Collateral
Supplier email (excluding Fujitsu)
Commercial Partners
Context
Handling approach
Collateral
Payzone employees and agents email
Retail partners email
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94
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97
99
101
102
105
106
108
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Introduction
Purpose of this document
This document sets out the Post Office’s strategy for communicating the result of the Horizon
Issues Trial.
The document sets out the context of the judgment, and the risks it presents to the Post Office,
before going on to map out an approach to communicating the judgment to all of the
organisation’s different stakeholders, geared towards meeting a number of strategic objectives.
For each stakeholder, the document sets out the context in which any engagement will take
place, a handling strategy, and the accompanying collateral material.
Context
The subject matter of the Horizon Issues Trial is the complex technical architecture and
functionality of the Horizon system an 18 year period. This is one part of a wider set of Group
Litigation Order proceedings arising from a long running dispute between the Post Office and a
group of mostly former postmasters who have made serious allegations about technical,
operational and contractual matters. The first substantive part of that litigation (the Common
Issues Trial [CIT], looking at the contractual relationship between the PO and postmasters)
finished on 5 December 2018. The judgment was handed down on 15 March 2019 and
included strong criticisms of Post Office behaviours. It received little media or political attention,
and had no measurable impact on consumer sentiment.
Judgment in the Horizon Issues Trial is expected in the first half of November. As the PO's
legal advisers note, this is a stepping-stone to other decisions. The reliability and functionality
of Horizon is not, in the context of the litigation, an end result in itself. It will however set a
foundation on which decisions in relation to specific postmasters, both historically by Post
Office and in the future by the Court, will be determined. It may tip the scales for or against
Post Office but it will not be determinative of any individual claim. The full implications of the
outcome of the Horizon Issues Trial will not been known until at least the end of the Further
Issues Trial, scheduled to begin in March 2020. In that further trial, the Court will consider, in
abstract but by reference to some real examples, questions around the recoverability of certain
claimed losses and what damages might apply in such circumstances should causation and
liability, in fact, be established at a later date.. However, the judgment could have immediate
reputational consequences for the PO if it includes harsh criticism of the Horizon IT system on
which PO transactions depend, and/or again of the Post Office’s behaviour towards
postmasters more generally.
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Across the network of 11,500 Post Office branches, Horizon processes around 47 million
transactions a week through Horizon, worth more than £60 billion a year.
Risks
The HIT clearly poses significant a significant reputational risk to the PO. In a worst case
scenario, where the judgment heavily criticises the operation of the Horizon system, there is
the potential for widespread loss of confidence — amongst postmasters, customers and
commercial partners — which, at the extreme end of the spectrum, could undermine the PO’s
ability to operate. Additional criticism about the culture and behaviour of the Post Office would
have the potential to ratchet up the impact of any criticism of Horizon itself. Given the risk to
operations that this would present, the communications response to the judgment will be vital.
However, in planning the communications response it would be a mistake to see the short term
risks purely through the prism of Horizon. The wider reputation of the Post Office and the
people running it will be at the heart of any external focus this receives. The HIT is part of a
wider litigation which has not, to date, attracted as much attention as it might have done. But
the fact that the CIT was so underreported could pose a risk, as sections of that judgment
could be dredged up by journalists and presented as previously undisclosed facts. Therefore,
in preparing the communications response to the HIT we must bear in mind broader points
raised in the previous judgment about the culture at the PO.
Worst case scenario hostile narrative
In the worst case scenario, a general hostile narrative that we could expect campaigners and
journalists to adopt is set out below. We have categorised each limb (text in brackets) and set
out some topline messaging later in this document:
e the Horizon IT system has been found to be fundamentally flawed and those flaws
have clearly led to postmasters being wrongly accused of theft (Horizon flawed)
e the Post Office was aware of these flaws and risks but attempted to cover them up -
even during the trial (PO culture, PO trial conduct)
e this forms part of PO's historic and ongoing vindictive attitude towards postmasters (PO
culture)
e@ the company providing technical support on Horizon - Fujitsu - is also guilty of failure
and incompetence (Fujitsu relationship)
e the deficiencies of the Horizon system call into question its continued usage and
suggest there could be thousands more victims (Future of Horizon)
e@ senior executives need to take responsibility for this major failure (Accountability)
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Below we set out some of the specific questions and further lines of attack that we would
expect to flow from these core points, set within some broad themes. These themes require
strong lines of defence, which will form the basis of a core script.
Strategic objectives
Our communications response will be framed by five core objectives to:
1. Avoid direct criticism of the court and its judgment, given that the litigation is ongoing
and the judge remains in situ
2. Protect the overall reputation of the Post Office and the integrity of its relationship with
postmasters
3. Reassure, and maintain the confidence of, key stakeholder groups in the overall
reliability of Horizon, the PO network, products and services
4. Proactively make clear that the Post Office is addressing the concerns of key
stakeholders and the Court
5. Minimise any media and political fallout arising from the Judgment
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Core script
Topline
The Post Office takes the concerns of the court extremely seriously and is examining the
judgment carefully. We are confident that the overall Horizon system is robust, comparing well
with similarly large and complex IT systems used by other retail and financial services
companies. Independent experts on both sides of the litigation confirmed this in the course of
the court proceedings.
The shortcomings identified in the judgment date cover events stretching back over two
decades, and the systems involved are either no longer in use or have been repeatedly
updated over this period. However, no system is perfect and we acknowledge the criticisms
that have been made. We will be working very closely with our IT partner, Fujitsu, to ensure
that any specific technical concerns that remain are fully addressed. We are also focusing our
efforts on ensuring that postmasters receive all the necessary support and training that they
require.
Tone of voice
The judgment is very likely to contain some difficult conclusions for the Post Office. However,
no matter how light or severe the criticism it will be important to maintain a balanced and
measured tone that avoids emotional or confrontational rhetoric.
The Post Office should welcome, insofar as it can, the careful scrutiny that this issue is
receiving and acknowledge and accept that changes are needed in certain places. These
changes can be presented as part of an ongoing effort to constantly improve processes in
tandem with key partners.
However, this is only one stage in an ongoing litigation and so whilst making clear that lessons
will be learned, there will be a need to maintain core positions and to avoid any signal that the
Post Office is “caving in” in the face of a negative judgment.
Most significantly, whatever the judgement says, the Post Office will need to maintain that the
Horizon system is fundamentally robust and reference facts that support that position.
Core messages
1. Horizon processes around 47 million transactions a week, more than £60 billion
worth a year.
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2. Transactions are successfully reconciled every day with the systems of major
organisations - including high street banks, utility companies and Government
departments.
3. But the judgment underlines to us very strongly the importance of how we need
to do more to help our postmasters operate their Post Offices.
4. We are therefore continuing to take firm action to improve that support,
alongside further investment in our technology.
5. Over the last 12 to 18 months we have had a particular focus on providing our
postmasters with recruitment, training and operational support, as well as
changes which further reduce the risk of human errors in branches.
Overarching handling approach
There are a multitude of stakeholders - both internal and external - to be considered in relation
to the judgment, and to meet the objectives set out above it will be important for the Post
Office to adopt a tailored handling approach for each group.
Broadly speaking, this will mean trying to de-dramatise media coverage and reassure political
stakeholders, while providing strong messages to internal audiences in relation to the
robustness of Horizon and the new support structures in place for postmasters.
The following section of the document sets out a tailored communications approach for each
stakeholder group, as well as setting out the collateral materials that have been prepared in
order to facilitate the relevant approach.
It will be important for the Post Office to maintain an agile approach in the hours and days
immediately following the judgment, so that any emerging issues can be quickly managed.
Therefore, the organisation's crisis management group should operate under protocols that
allow for swift sign-off of any proposed activity.
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Handling timeline
Judgment embargo period
When Audience Delivered by Channel Key messages/activity ( tbc) Document
number*
Time tbe Board, CEO,GE Ben Foat Email Confirm timing & Communication approach I n/a
Time tbc L40 Nick Read Email Confirm timing & communication approach _I n/a
Time tbc UKGI Patrick Bourke call Confirm timing n/a
Time tbe BEIS Policy Patrick Bourke call Confirm timing n/a
Time tbe BEIS Comms Mel Corfield Call/email Confirm timing n/a
Time tbe Social Media & Ruth Barker/Darren Email Confirm timing n/a
Press Team Jones
TBC Area Managers Marketing/Simon Post Posters for use in closed branches (36)
Philips
Day before Judgment is made public
When Audience Delivered by Channel Key messages /activity Document
number*
Time tbc L300 Jonathan Knox n/a Set up conference call for next day n/a
End ofday I n/a Legal tbe n/a All collateral signed off n/a
Day 1 - Judgment is made public
When Audience Delivered by Channel Key messages/activity Document
number*
Morning POL witnesses Angela VDB Call Likely comment on their appearance in n/a
court, OH support
Morning L300 Jonathan Knox One Email Invitation to L300 call - signed by Nick Read I (4)
Time tbe L300 Nick Read L300 Call Post Office response to judgment call script. I (5)
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Call hosted by Patek B/
As L300 call I POL colleagues Jonathan Knox POL intranet I Live with information documents - Internal I (6) (7) (8) (10)
underway Q&A, Post Office fact sheet, GLO fact sheet,
media statement
As L300 call I POL Colleagues, I Nick Read One email Post Office response to judgment plus link (9)
underway including DMBS, to intranet with documents
& Supply Chain
As L300 call I Postmasters Jonathan Knox Memoview Direct branches to One website for (11) (12) (13)
underway message important update and more information
Jonathan Knox Branch Hub
message (tbc)
Kim Abbott IVR
As L300 call I Postmasters Jonathan Knox One website Live with information - One story, Internal (6) (15)
underway Q&A
As L300 call I Postmasters Debbie Smith One email Post Office response to judgment, directing I (14)
underway branches to One website for more
information
As L300 call I Media Mel Corfield Media Reactive/proactive tbc (7)
underway statement
tbe
As L300 call I Social Media Darren Jones Social media Pre prepared tweets and messages for (7)
underway Team channels reactive response using media statement
Time tbc Commercial Mark Siviter, Owen Call & Email Post Office response to judgment (16) (18)
partners CEO’s Woodley, Shikha
RMG,BOLFujitsu_ I Hornsey
Time tbe BEIS/UKGI Patrick Bourke Face to face Post Office response to judgment (30)
ministers/policy meeting
Possibly include (Brief tbc)
Ministerial &
Perm Sec
Time tbe BEIS Comms Mel Corfield Email Media statement (7)
Time tbe Press office & Ruth Barker/Press I Email Media statement (7)
public affairs
teams -RMG, BOI,
Team
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Fujitsu
Time tbe DMB Managers Steve Blampied Email Post Office response to judgment (39)
Time tbe Paula Vennells/ I the Call/email Post Office response to judgment (31)
Ex-chairman/
NEDs.
Time tbe Payzone Agents I Andrew Goddard Requirements I Post Office response to judgment (21)
tbe doesn’t impact Payzone
Time tbe Payzone Andrew Goddard Email Post Office response to judgment (21)
employees doesn’t impact Payzone
Time tbe Multiple Karl Oliver/Amanda Call / email Post Office response to judgment (16) (17)
Partners/WHS Jones (Retail partners)
Time tbc Retail Ops Team I Pam Heap/ Amanda Call & email PMR One story, Q&A, PO & GLO Fact sheets, I (6) (7) (8) (10) (15)
Branch Support I Jones Media statement, Postmaster talking brief- I (34) (35)
Change link to intranet, objection handling brief
Managers
Onboarding **
Training
Time tbe Retail Sales I Andy Call & email PMR One story, Internal Q&A, PO &GLO (6) (7) (8) (10) (15)
Team Area I Kingham/Amanda Facts sheets, Media statement, link to (34) (35)
Managers Jones intranet, reactive Postmaster talking brief,
reopen branch brief
Time tbe Loss Prevention I Tim Perkins/Julie Call & email PMR One story, Internal Q&A, PO & GLO (6) (7) (8) (10) (15)
Team Thomas Facts sheets, Media statement - link to
intranet
Time tbe Property Team Steve Norris/Julie Call & email PMR One story, Internal Q&A, PO & GLO (6) (7) (8) (10) (15)
Thomas Facts sheets, Media statement - link to
intranet
Time tbe HRSC David Higham Email Talking brief & Internal Q&A (6) (37)
Time tbe BSC Kim Abbotts Email Talking brief & Internal Q&A (6) (29)
Time tbc ECT Laura Tarling Email Customer and Postmaster brief, Internal (6) (29) (28) (7)
Q&A, media statement
Time tbe Onboarding Laura Tarling Email Talking brief & Internal Q&A (6) (38)
Team
Time tbe National Peter Johnson Email Customer Service brief & Internal Q&A (6) (28)
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Consultation
Team
Time tbe Horizon Helpline I Ben Cook Email Talking brief & Q&A (6) (29)
(IT service desk)
Time tbe GrapeVine/King I Julie Thomas Email Redirect enquiries to BSC (22)
Security
Telco helpline
Time tbe Customer Kim Abbotts Email Post Office response to judgment (6) (28)
Services (External), Q&A
Time tbe IT Supplier Shikha Hornsey Call & email Post Office response to judgment (16) (19)
Management (External)
(exc Fujitsu)
Time tbc Procurement Barbara Brannon Email Post Office response to judgment (19)
contacts (External)
Time tbe Regulators Jonathan Hill Email Post Office response to judgment (16) (18)
(External)
Time tbe Clients Owen Woodley (BOI) Call &letter/ I Post Office response to judgment (16) (18)
Martin Edwards email (External)
(IDP,HO,DVLA)
Chrysanthy Pispinis
(FRES,Moneygram)
Meredith Sharples
(Telecoms),
Ed Dutton (Insurance),
Mark Siviter (One4all,
Camelot, Royal Mail),
Martin Kearsley
(Banking, POCA),
Russell Hancock (Bank
of England)
Andrew Goddard/Paul
Wordsworth ( Bill
Payment)
Time tbe McKinsey Lisa Cherry Email Post Office response to judgment (19)
(External)
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Time tbe NFSP. Amanda Jones /Nick Call/F2F Post Office response to judgment (23) (7)
Beal briefing tbc speaking brief, media statement
Time tbe CWU & Unite Lee Kelly tbe Post Office response to judgment (24) (7)
(tbc) speaking brief, media statement
Time tbe MPs Patrick Bourke/Alice Letter by Parliament will be dissolved 6/11- (26) (7)
Cookson email 12/12/19, media statement
Time tbe Citizens Advice Patrick Bourke Call/email Post Office response to judgment, media (26) (7)
statement
Post Judgment Days 2-14
When Audience Delivered by Channel Key messages/activity Document
number*
Day 2-14 Postmasters Rina Patel OBU posted POL response, how we supports PMRs, One I (20)
to website link to video
Postmasters
(excl Mults)??
Day 2-14 Postmasters Communication Team I TBC - f2f Reactive responses tbe
tbc/Legal Teams events??
Day 2 -14 POL Colleagues Communication Team I Update Reactive responses tbe
/Legal Teams Intranet page,
f2f events??
Day 2-14 Client Communication Team I Email via Reactive responses tbe
Teams/Suppliers I /Legal Teams Client/suppli
er teams
Day 2-14 UNITE,CWU Communication Team I Email viaLee I Reactive responses tbe
tbc/Legal Teams Kelly
Day 2-14 NFSP. Communication Team I Email via Reactive responses tbe
tbc/Legal Teams Amanda Jones
Day 2-14 Media/Social Communication Team I Media/Social I Reactive responses tbe
Media tbc/Legal Teams channels
Day 2-14 Political ext Communication Team I Email via Reactive responses tbe
stakeholders tbc/Legal Teams relevant team
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Handling different stakeholders
This section sets out all of the Post Office’s key stakeholder groups, and includes for each
group:
41. The context in which the Post Office will be communicating with them
2. An engagement approach
3. Relevant collateral materials
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Media
Context
Other than Nick Wallis, no journalists are following the litigation on a detailed, day-to-day
basis. However, the Daily Mail is running an ongoing campaign to save local Post Offices, and
has dipped into the trial at times, with coverage usually written by Sam Greenhill, the paper’s
highly experienced chief reporter. At the same time, the recent coverage of Barclays’ move to
stop customers withdrawing cash at Post Office counters has — in the short term — increased
media focus on the Post Office.
Broadly speaking, therefore, given that there is not a wide pool of journalists who have
followed the trial in detail; those penning the coverage of the judgment are likely to have little
detailed knowledge of the issues at hand. Likewise, the Post Office is unlikely to have an
ongoing relationship with the majority of journalists assigned to cover the judgment.
The judgment is likely to be extremely long and detailed; too long for a journalist at a
broadcaster or daily paper to read, digest and report on within the necessary timeframe.
Journalists are therefore going to be particularly reliant on the parties (who are likely to have
advanced sight of the document) pointing out key parts of the judgment that support their
case.
Depending on the approach taken by the court in providing advance public warning about the
timing of the judgment, and subject to the claimants’ approach to tipping off journalists, many
newsdesks may learn about the judgment for the first time when it breaks on another outlet’s
website (or, most likely, on the news wires). Given the time constraints set out above, this initial
coverage is likely to frame the coverage of other outlets.
The claimants will be well advised to ensure that they catalogue the most damning parts of the
judgment and put them in front of the media at the earliest possible opportunity, to try to frame
the coverage. Therefore it is vital that the Post Office considers carefully whether it should act
proactively or reactively in responding to the judgment.
Handling approach
It will not be possible to formulate a precise handling strategy until the embargoed judgment
has been received and reviewed. However, the nature of the Post Office’s approach is likely to
be conditioned by three key factors:
1. The judgment: How bad/good it is for the Post Office, and the volume and content of
key quotes that are likely to make headlines
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Given the Post Office expects to have the chance to review the judgment ahead of publication,
it will have time to come to a view as to how bad the judgment is for its position. Subject to the
other criteria set out below, we would suggest that in general terms the worse the judgment,
the more proactive the Post Office will want to be. This is because there is likely to be a
significant coverage of an extremely bad judgment — whatever approach the Post Office
adopts — and therefore the need to try to control the story takes precedence over hanging back
and hoping it passes unnoticed.
We understand that WBD will scope out the document during the embargo process to
establish the key findings and legal ramifications.
2. The extent to which media are aware that the judgment is coming, and are tee’d up to
cover it
The extent to which the media are primed and prepared for a judgment will have a bearing on
how proactive the Post Office should be. If it is clear that the media are fully aware of the
publication date of the judgment, and are primed and ready to cover it as soon as it lands, it
will clearly be in the Post Office’s interests to be as proactive as possible, to try to shape the
story in the key first hours in which the tone of the coverage will be set
If it is clear that media are totally unaware of the judgment, and depending on the other factors
identified here, there may be some merit in taking a more reactive approach.
In advance of the judgment, the Post Office should take care to monitor media for any
coverage foreshadowing the judgment, as well as any social media comment referencing a
forthcoming judgment, and the tone of these.
The Post Office should also take care to monitor the Press Association planning diary, as well
as subscription planning services such as Foresight, for any advance flagging of the judgment,
as well as the tone of these notices.
3. Any knowledge the Post Office has of how the claimants - and other stakeholders -
are likely to react
Any intelligence on how key stakeholders such as NFSP, as well as the claimants themselves,
are likely to react will help the Post Office finalise its planned approach.
It will be important for the Post Office to keep open channels of communication with key
stakeholders during the embargo period, to try to understand their likely approach. While the
Post Office will obviously not be able to share details of the judgment, it is possible that some
stakeholders, if they are aware of a forthcoming judgment, may draw up statements that will be
essentially the same, regardless of the content of the judgment, and so any intelligence the
Post Office can glean as to how these stakeholders are likely to react will help it finesse its
own approach.
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Collateral
Draft media statement
DOCUMENT -- 7
NOTE: TONE/MESSAGING/POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
POST OFFICE RESPONSE TO JUDGMENT IN THE SECOND TRIAL OF GROUP
LITIGATION ORDER
The Honourable Mr Justice Fraser has delivered his judgment in the second trial of Group
Litigation brought against Post Office by a small proportion of former postmasters. The
purpose of this second trial was to determine a number of technical matters about Post
Office’s Horizon computer system (the electronic point of sale system in branches). This trial
forms part of the stages in the litigation which are designed to establish the context in which
the facts and circumstances of the individual claims can properly be determined. Further
hearings to determine other legal matters ahead of examination of individual cases, are
currently scheduled through to 2020.
Post Office Chairman Tim Parker said:
“We take this judgment, and the litigation of which it forms part, extremely seriously.
[WORDING SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST JUDGMENT :
“As both the independent experts for the Claimants and the Post Office, on opposite sides of
the litigation confirm, we can be confident that overall Horizon is robust, comparing well with
systems used by other retail and financial services companies every day.]
“But clearly no system can ever be said to be perfect. That is why Horizon’s performance is
continually monitored and why we’re working as hard as ever to make improvements wherever
we can.
“Horizon processes around 47 million transactions a week, more than £60 billion worth a year.
There is reconciliation every day, every, month, every year, which includes the systems of
major organisations we work with - high street banks, utility companies and Government
departments, giving confidence in the many products and services we provide.
“As the judgment underlines, the way in which we help our postmasters operate their Post
Offices to deliver those services is absolutely central to our joint success. We're taking/ we’ve
taken firm action to improve that support, alongside further investment in our technology.
“Over the last 12 to 18 months, we have had a particular focus on making changes at every
level of the business to build a better partnership with our postmasters to help them better
serve their customers, earn more money, for less effort, and with better support from us.
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“These include improvements to recruitment, training and operational support, as well as
changes which further reduce the risk of human errors in branches.
“We are committed to making it easier for our postmasters to deliver vital Post Office services
our customers want and need and build thriving businesses for themselves at the same time.”
[Add in lines re potential next legal steps as appropriate]
-ends-
Notes to editors
[NOTE: MIGHT HAVE TO EXCLUDE THIS LINE, DEPENDENT ON JUDGE’S COMMENTS]
The products and services that Post Office’s provide every day to millions of customers are not
affected by the litigation.]
The litigation is part of a long-running dispute between Post Office and a group of mostly
former postmasters who have made allegations about technical, operational and contractual
matters. A High Court claim was issued in April 2016 and in March 2017 the Court issues a
Group Litigation Order (GLO), a procedural tool to enable the Court to manage litigation
affecting multiple parties.
The case is complex and the Judge ordered that it will be heard as a series of trials. Two trials
have been held to date: the first on contractual matters between Post Office and postmasters
and the second on technical matters regarding Post Office’s computer system, Horizon.
Neither of these trials have or will determine liability or the individual claimants cases. Further
Court hearings are scheduled through into 2020.
The Horizon system
Horizon is the electronic point of sale system used across all 11,500 Post Office branches to
record and reconcile each transaction.
Horizon supports approximately 30,000 terminals in branches, with currently around 60,000
users. The system processes 47 million transactions a week.
Horizon was first introduced in 1995 on a pilot basis in a small number of Post Office branches,
before being rolled out more widely. The current version — Horizon Online — was introduced in
2010 and has been continually improved and updated. Investing in technology remains a
priority and in 2018/19 Post Office rolled out new equipment to all branches and transformed
its back office systems.
Transactions in Post Office branches are undertaken on behalf of other large-scale
organisations including high street banks, utility companies and Government departments.
Around £60 billion worth of transactions are processed through Horizons and reconciled every
year.
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[Horizon, which is supplied by Fujitsu, is subject to regular comprehensive and independent
reviews, testing and audit procedures — top line details XXXXX]
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Core media Q&A
DOCUMENT 2
CORE QUESTIONS AND ANSWERS - REACTIVE ONLY (FOR MEDIA AND EXTERNAL
AUDIENCES)
TO BE REVIEWED AGAINST JUDGMENT
Horizon flawed
Topline
We are confident that the overall Horizon system is robust, successfully reconciling 47 million
transactions a week with the systems of our commercial partners. While no system is perfect,
independent experts on both sides of the litigation confirmed during the trial that Horizon is
robust and compares well with IT systems used by other retail and financial services
companies.
Key Q&A
Q. The Judge has ruled that the Horizon system is fundamentally flawed and not fit for
purpose. Do you agree with this ruling?
A. The Judgment is very detailed and we are studying it carefully. We are working with Fujitsu
to make improvements and we take the comments made very seriously.
But it is important to underline that, whilst no large-scale IT system is perfect, independent
experts on both sides of the litigation confirmed during the trial that Horizon is robust and
compares well with similar complex IT systems used by other retail and financial services
companies.
Context is also important: Horizon processes around 47 million transactions a week, more than
£60 billion worth a year. There is reconciliation every day, every month, every year, with the
systems of major organisations including high street banks, utility companies and Government
departments.
NB For example, banking transactions are correlated back to banks’ individual systems and
have done so for years. It is the banks’ own systems that issue authorisation to Post Office via
an external company called VocaLink for each and every transaction. VocaLink issues a report
each day called an LREC (Link Reconciliation) which tells Post Office and every bank who
owes what to whom for settlement the next day. This is an industry-wide mechanism that
mirrors the standard ATM networks, covering some 3-4 billion transactions a year.
Q. How many bugs have you identified?
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A. It is important to understand that bugs exist in any large and complex IT system, and the
management of any system like Horizon involves a programme of continuous improvement.
We have well established processes in place with our IT partner, Fujitsu, to identify and
remedy any issues with the system, and all of the bugs identified in the trial have been
resolved.
Q. Do you accept that the IT failures identified in the trial could have been responsible for
financial discrepancies at branch level?
A. The purpose of the Horizon Issues Trial was to establish the facts about technical matters
concerning the Horizon computer system, and this judgment does not determine the outcome
of any individual claims. Independent experts on both sides of the litigation confirmed during
the trial that Horizon is robust and compares well with similarly large and complex IT systems
used by other retail and financial services companies.
[NB: Post Office’s position — as outlined in its closing submission at trial — is that whilst no large-
scale IT system can be perfect, it is overwhelmingly unlikely that any significant amount of the
overall shortfall claimed was caused by the matters the claimants complain of regarding the
system.]
Q. How can you continue to use a system that has been exposed as containing
numerous bugs and subject to other flaws?
A. It is important to understand that bugs exist in any large and complex IT system, and the
management of any system like Horizon involves a programme of continuous counter-
measures and improvement. We have complete confidence in the system.
Independent experts on both sides of the litigation confirmed during the trial that Horizon is
robust and compares well with IT systems used by other retail and financial services
companies.
Context is important: Horizon processes around 47 million transactions a week, more than £60
billion worth a year. There is reconciliation every day, every month, every year, with the
systems of major organisations including high street banks, utility companies and Government
departments.
NB For example, banking transactions are correlated back to banks’ individual systems and
have done so for years. It is the banks’ own systems that issue authorisation to Post Office via
an external company called VocaLink for each and every transaction. VocaLink issues a report
each day called an LREC (Link Reconciliation) which tells Post Office and every bank who
owes what to whom for settlement the next day. This is an industry-wide mechanism that
mirrors the standard ATM networks, covering some 3-4 billion transactions a year.
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Q. The PO highlights the large number of transactions it completes every day - but in the
context of this judgment doesn't that underline the scale of risk posed by Horizon?
Not at all. Horizon processes 47 million transactions a week, and records generated by these
transactions are validated and there is reconciliation every day with the systems of our
commercial partners — including high street banks, utility companies and Government
departments. That gives the Post Office and our partners confidence that the system is
fundamentally robust.
Post Office trial conduct
Topline
This was an incredibly complex trial, examining highly technical questions spanning a period of
around twenty years. The Post Office provided extensive disclosure of information throughout
the trial, often in response to late disclosure requests made by the claimants. However, we
respect the views of the Court and will ensure that we take this criticism on board as we
prepare for the next stage of the litigation.
Key Q&A
Q. Why did the PO resist disclosure of so much material and/or provide it so late?
A. The Post Office provided extensive disclosure of information throughout the trial — often in
response to late disclosure requests by the claimants. A lot of this material related to incredibly
complex technical data, some stretching back 20 years into the past, which had to be extracted
from systems.
At every stage of the disclosure process, we have sought to ensure that the claimants are
provided with access to the documents required by the Court. The volume of disclosure is very
significant, with searches through 17 million documents to date. Horizon documents are held
and supplied by Fujitsu and we have worked with a specialist disclosure consultancy to assist
with this major disclosure exercise which involves more than 80 classes of documents. In
excess of 500,000 documents have been provided by Post Office to date, with around half of
these directly related to Horizon.
{If asked about recent disclosure issue re Fujitsu: We take our continuing duty of disclosure
very seriously. We were extremely disappointed recently to learn from our supplier, Fujitsu,
that the information they had provided earlier in the litigation regarding the availability of older
versions of some specific technical documents was inaccurate. We immediately notified the
claimants and the Court of this and we are, of course, now making the appropriate further
disclosure. We are very sorry about this development and have apologised both to the Court
and the Claimants, through their solicitors.]
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Q. Why did the PO witnesses refuse to acknowledge the clear and obvious problems with
Horizon?
A. While the experts from both sides of the litigation agreed on the fundamental issue that the
Horizon system is robust, there were some areas in which they were unable to reach
agreement. But this was an incredibly complex trial, examining highly technical questions
spanning a period of around twenty years, and it is not surprising that different witnesses on
both sides expressed different views and perspectives.
Q. The Judge has described the PO as having a ‘culture of secrecy' and going to extreme
lengths to withhold or delay evidence. Why was that?
A. The events examined in the trial covered a period of around twenty years, and the culture
and practices of the Post Office have changed immeasurably over this period. At every stage
of the disclosure process, we have sought to ensure that the claimants are provided with
access to the documents required by the Court. The volume of disclosure is very significant,
with searches through 17 million documents to date. Horizon documents are held and supplied
by Fujitsu and we have worked with a specialist disclosure consultancy to assist with this major
disclosure exercise which involves more than 80 classes of documents. In excess of 500,000
documents have been provided by Post Office to date, with around half of these directly
related to Horizon.
Q. The Judge criticised Dr Worden as careless, saying that he was acting to a pre-
ordained view that favoured the PO. Why is that?
A. We are disappointed that the judge came to this view. As an independent expert witness
Dr Worden provided careful and balanced evidence and made every effort to provide
assistance to the Court and to provide full and helpful answers in response to the questions
posed to him about Horizon.
Post Office culture
Topline
There is nothing more important to our business than our relationship with our postmasters, the
people delivering our services to customers day-in, day-out, and we are committed to making it
easier for them to build thriving businesses. The events examined in the trial covered a period
of around twenty years, and the culture and practices of the Post Office have changed
immeasurably over this period. We are continuing to improve how we support postmasters —
including onboarding, better training and communications, specific new help using Horizon,
and the creation of a new field team to build closer links with branches. In addition we are
taking steps to improve subpostmaster remuneration.
Key Q&A
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Q. Was the PO engaged in an institutional attempt to cover up the failings of the Horizon
system?
A. Absolutely not. The Horizon system has been a matter of public and political debate for a
number of years and the PO has responded to numerous requests for information, including
from Parliament. We have disclosed extensive information during the course of the trial and
will continue to do so.
In this litigation, at every stage of the disclosure process, we have sought to ensure that the
claimants are provided with access to the documents required by the Court. The volume of
disclosure is very significant, with searches through 17 million documents to date. Horizon
documents are held and supplied by Fujitsu and we have worked with a specialist disclosure
consultancy to assist with this major disclosure exercise which involves more than 80 classes
of documents. In excess of 500,000 documents have been provided by Post Office to date,
with around half of these directly related to Horizon.
Q. Do you accept that the PO has failed to exercise a proper duty of care towards
subpostmasters?
A. Subpostmasters are critical to our network and we are absolutely committed to supporting
them in their work. We are working hard to improve, including taking on board criticisms made
during this litigation. We are increasing the practical support that we provide to them centrally
and in the field, as well as implementing measures that will increase their remuneration.
Q. Why did the PO deny for so long that it was possible to access the Horizon system
remotely, when it turns out that both the PO and Fujitsu could do so?
A. Post Office regrets that fuller information on this point was not made available in the past.
We have always tried to answer questions about this very technical subject honestly. We do
now have more information about it.
To be clear - Post Office has ‘read only’ access to transaction histories and reporting to
enable, for example, work in back office reconciliation. Fujitsu, as the supplier of Horizon, has
remote access capabilities for maintenance and support purposes.
Access to the Horizon system that enables changes to branch transaction data is not required
for day to day support and is restricted to a very few, authorised, specialist Fujitsu personnel.
In the rare and unlikely circumstances in which these personnel might need to undertake work
which could affect branch accounts, the relevant postmasters are contacted. A secure audit
trail is retained which shows the detail of any Fujitsu intervention and a record of the contact
with postmasters is also kept securely.
The term ‘remote access’ is often used to refer to malicious tampering by people unauthorised
to enter a system eg hackers. There is no evidence that this has ever occurred.
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{NB: During the trial Post Office defined the term ‘remote access’ as the ways in which Post
Office and/ or Fujitsu can access the Horizon system and insert, edit or delete transaction data
in branch accounts without being physically present in a branch.]
Q. Why did the PO helpline provide inadequate and inaccurate advice to Postmasters?
Does it still do this today?
A. Subpostmasters are critical to the delivery of a national post office network and we are
absolutely committed to supporting them in their work. As part of a programme of
improvements to our support for postmasters we have made changes which enable our
helplines to respond to concerns and enquiries more quickly and effectively.
There have been many changes over the two decades spanned by the claims in the litigation
and it is worth underlining that the claimants are a very small proportion of the people who
have worked in our network using our systems during that time.
Q. Why did the PO refuse to fix some bugs for cost reasons?
There is no evidence to suggest that the Post Office or its IT partner, Fujitsu, refused to take
appropriate action to fix bugs because it was too expensive to do so. The trial heard evidence
of Fujitsu’s dedication and professionalism in identifying and fixing bugs.
When considering how to remedy potential bugs, engineers always analyse the risks of
introducing new code and other factors including the significance of the bug itself.
(We should consider other areas covered by this trial involving the PO cultural approach to
Horizon)
Fujitsu relationship
Topline
Expert witnesses for both sides in the litigation agree that Fujitsu had good systems in place to
spot and fix problems with Horizon. We have a strong and positive relationship with Fujitsu and
today we are continuing working closely together to ensure postmasters are better supported,
and improvements made to simplify aspects of Horizon
Key Q&A
Q. The Judge reserved some of his strongest criticism for Fujitsu's witnesses. What is
the PO view on their evidence?
A. This is a detailed and lengthy judgment covering a period spanning two decades and
covering highly complex, technical matters. We will take time to examine it closely.
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Q. Given the heavy criticism of Fujitsu during the period analysed by the Judge, will you
be looking to recoup any damages awarded against you from Fujitsu?
A. The purpose of the Horizon Issues Trial was to establish the facts about technical matters
concerning the Horizon computer system, and this judgment does not determine the outcome
of any individual claims. There are further hearings, currently scheduled into 2020. This is a
detailed and lengthy judgment covering a period spanning two decades, and we will take time
to examine it closely.
Q. What action have you taken to seek redress for some of the poor performance by
Fujitsu revealed in the course of this trial?
A. This is a detailed and lengthy judgment covering a period spanning two decades, and we
will take time to examine it closely.
Q. Will you sever your relationship with Fujitsu, given the judge's damning comments
about them?
A. No. We are confident that the overall Horizon system is robust, processing 47 million
transactions a week, reconciling with the systems of commercial partners such as high street
banks. While no system is perfect, independent experts on both sides of the litigation
confirmed during the trial that Horizon is robust and compares well with IT systems used by
other retail and financial services companies.
The Judgment covers a very long period of time, during which there have been significant
changes. We are carefully considering its detail but it’s important to underline that overall we
have a strong and positive relationship with Fujitsu and we are working closely together on
making improvements.
Q. Why does the Post Office still trust Fujitsu to provide this service?
A. As we continue to use Horizon we are working with Fujitsu to strengthen the system through
further investment. While no system is perfect, independent experts on both sides of the
litigation confirmed during the trial that Horizon is robust and compares well with IT systems
used by other retail and financial services companies.
It's important to underline the context of the litigation: Horizon processes 47m transactions a
week, reconciling with the systems of commercial partners such as high street banks.
Future of Horizon
Topline
We are confident that the overall Horizon system is robust, processing 47 million transactions
a week and reconciliation with the systems of commercial partners such as High Street banks.
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While no system is perfect, independent experts on both sides of the litigation confirmed
during the trial that Horizon is robust and compares well with IT systems used by other retail
and financial services companies. As we continue to use Horizon we are strengthening the
system through further investment in new equipment and in additional training and support for
subpostmasters.
Key Q&A
Q. Will you now scrap this system?
No, we are confident that the overall Horizon system is robust, processing 47 million
transactions a week, reconciling with the systems of our commercial partners such as high
street banks. While no system is perfect, independent experts on both sides of the litigation
confirmed during the trial that Horizon is robust and compares well with IT systems used by
other retail and financial services companies.
We will be working closely with Fujitsu to continue to make improvements, alongside the
actions we’re taking to better support our postmasters with, for example, enhanced training.
Q. Could the problems identified in this trial be the tip of an iceberg?
While no system is perfect, independent experts on both sides of the litigation confirmed
during the trial that Horizon is robust and compares well with IT systems used by other retail
and financial services companies. We are continuing to make improvements and there are
numerous continuous countermeasures in place, audited on a regular basis, which are prevent
or detect technical issues.
Q. Are you expecting more victims to come forward?
The purpose of the litigation is to resolve the cases of the individual claimants included in the
Group Litigation Order.
The Group Litigation Order was advertised and promoted by the claimants’ legal team for eight
months, as specified by the Court. There are [551] claimants with complaints which span the
past two decades, representing a very small proportion of people who have worked in our
network using our systems during that time.
Q. What steps are you taking to reassure Postmasters that the system is robust?
We are confident that the overall Horizon system is robust, processing 47 million transactions
a week and reconciling with the systems of our commercial partners such as high street banks.
We continue to make improvements to the system, alongside the actions we're taking to better
support our postmasters with, for example, enhanced training.
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We have made also made changes which enable our helplines to respond to concerns and
enquiries more quickly and effectively and created a new field team to build closer links with
postmasters.
Q. What will happen to any Postmasters refusing to use the system?
We want our postmasters to feel confident about operating their branches. Independent
experts on both sides of the litigation confirmed during the trial that Horizon is robust and
compares well with IT systems used by other retail and financial services companies.
Nevertheless, we will have additional support staff on hand in the coming days, to complement
the new measures we have put in place to better support postmasters. These include
improvements to training, the creation of a new field team to build closer links with branches
and changes which enable our helplines to respond to concerns and queries more quickly and
effectively.
Q. What steps are you taking to address the problems with Horizon?
We are confident that the overall Horizon system is robust. It processes 47 million transactions
a week, reconciling with the systems of our commercial partners such as high street banks.
We are focussed on continual improvements, working closely with Fujitsu and our postmasters.
In 2018/19 we completed a roll-out of new equipment to all our branches and transformed our
back office systems. Our current plans include taking action to improve some of our
transaction processes and system design to make life simpler for our postmasters and reduce
the risk of errors. Some work is already completed or underway.
Alongside this we are improving our training and support and working hard to build a stronger
relationship with postmasters.
Q. Will Horizon need to be replaced in the longer term?
Like any business, we constantly review our systems, but we have no plans to replace Horizon.
We are focused on continual developments and improvements, working closely with Fujitsu
and our postmasters. Over the past year we have completed a roll-out of new equipment to all
our branches and transformed our back office systems.
Accountability
Topline
This is a detailed and lengthy judgment covering a period spanning two decades, and we will
take time to examine it closely. The culture and practices of the Post Office have changed
immeasurably since the period covered by the judgment. We recognise that better support
should have been provided to subpostmasters in the past, and we have devoted significant
energy and resources to provide this. This has led to better training and onboarding for new
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subpostmasters, specific new help using Horizon, and the creation of a new field team to build
closer links with branches. In addition we are taking steps to improve subpostmaster
remuneration.
Key Q&A
Q. How much has/will this trial cost taxpayers?
A. We have set out in our ARA 2018/19 the position regarding costs relating to the litigation.
Costs of £20m are included in exceptional items.
Q. Will the PO now move to settle cases with claimants to bring this saga to an end?
A. This is an incredibly complex piece of litigation, examining highly technical questions
spanning a period of around twenty years. The conclusion of the Horizon Issues Trial
represents a positive step along the pathway to resolving the claims that have been raised,
and the Post Office will continue to robustly defend its position.
[tbc if timings for mediation agreed and dependent on agreed public statement re the process:
We have been keen to engage in mediation with the claimants and we are pleased that they
have now agreed a process/ timetable for this. Mediation will begin on XXXXXX
We believe that, by entering into mediation in good faith, both parties have the opportunity to
resolve the individual cases underlying the litigation and bring it to a conclusion.
The process provides for open communications between both sides, facilitated by an impartial
mediator in a confidential environment.
Whilst we recognise the complexities of the issues involved we hope that, with the active
participation of both sides, we are able to agree solutions which avoid further prolonging the
dispute.
Both parties have agreed that the necessary confidentiality of mediation will be respected and
will not be making public comments about its details during the process.]
Q. Who should take ultimate responsibility for this debacle?
A. The conclusion of the Horizon Issues Trial represents a positive step along the pathway to
resolving the claims that have been raised but it should be underlined that there is no
determination regarding the individual cases which have not yet been examined in Court.
Given that proceedings are still live, it would not be appropriate for us to comment further.
Q. Will any senior executives of the PO be removed from their positions?
A. The conclusion of the Horizon Issues Trial represents a positive step along the pathway to
resolving the claims that have been raised but it should be underlined that there is no
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determination regarding the individual cases which have not yet been examined in Court.
Given that proceedings are still live, it would not be appropriate for us to comment further.
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Reactive lines in case of network disruption
DOCUMENT - 27
NOTE: TO BE REVIEWED AGAINST OPERATIONAL POSITION [FRAMEWORK &
COMMUNICATIONS PLAN FOR NETWORK DISRUPTION IN DEVELOPMENT]
REACTIVE MEDIA LINES TO TAKE IF DISRUPTION TO NETWORK EG SOME BRANCHES
REFUSE TO OPEN
e The vast majority of our 11,500 Post Office branches are open for business as usual.
e Weare sorry that a small minority of branches are closed but we're doing all we can to
work with those postmasters to re-open as soon as possible. Customers are advised to
use other branches in the area [contact xxxx].
e@ [NOTE - MAY HAVE TO EXCLUDE THIS LINE DEPENDENT ON JUDGE’S
COMMENTS - Customers can continue to have confidence in Post Office products and
services.] Around 47 million transactions a week are processed through Post Office
branches on behalf of other large-scale organisations including high street banks, utility
companies and Government departments.
e The litigation is part of a long-running dispute between Post Office and a small
proportion of mainly former postmasters.
e The case is complex and is being heard in stages, currently scheduled through to 2020.
The Judgment concerning the Horizon computer system covered technical matters
relating to the 20-year period spanned by individual claims, during which time there
have been significant changes, with some of the systems and processes referenced no
longer in existence.
REFER TO MEDIA STATEMENT & Qs and As
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Political audiences
Context
There is close interest in this issue within Whitehall, specifically within BEIS/UKGI. This will be
heightened by the general election and concerns that this issue could become the subject of
political controversy.
To date there has been limited parliamentary discussion of the GLO. We identified one
Westminster Hall debate, in April, that considered the matter. In that debate, the chair, Dame
Cheryl Gillan MP, introduced the debate by reminding members that the litigation was still live
and that therefore, in accordance with the House's sub judice resolution, there should be no
discussion about the GLO. As a result, while there was criticism of postmaster remuneration
and questions about the sustainability of the PO network, there was no consideration of the
issues at hand in the GLO.
We have identified 13 PQs relating to the GLO in 2019. The overwhelming majority of these
related to specific issues such as ascertaining the cost of the litigation, the number of meetings
ministers have held with the PO, and the identity of the PO's lawyers.
Of the distinct pieces of national newspaper coverage relating to the GLO in 2019, none
featured quotes from any MPs or Peers. So, overall, there has been limited parliamentary
interest in the GLO itself in recent months - perhaps as a function of the fact that proceedings
up to this point have still been live.
However, we know that there is significant broader political interest in the Post Office network
and in issues regarding postmasters. Select committees have periodically examined these
themes, most recently the BEIS committee under Rachel Reeves.
More generally, MPs across the political spectrum are highly exercised by any attempt to close
or redesignate an individual Post Office and many on the Labour side have close links to the
CWU. Many have in the past commented on the Horizon issue.
Given their general familiarity with the Post Office and their connections with third parties and
in some cases campaigners, there is the potential for any adverse judgment in the Horizon trial
to become quickly politicised in the context of the current general election.
Handling approach
The handling with government stakeholders should be proactive and it will be very important to
ensure that Whitehall networks, particularly within BEIS/UKGI, are fully aware of the Post
Office’s general handling plan and messaging in response to the judgment.
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Wider political handling will depend upon the nature of the judgment and immediate media
interest in the story, but should ideally be reactive only. In the event of a highly critical
judgment and indications that there is likely to be strong press interest, it may be necessary to
write to relevant members of the Labour and Liberal Democrat front bench teams, setting out
the Post Office’s response, as well as to communicate with other key stakeholders including
the former chair of the BEIS select committee, who may be asked for comment.
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Collateral
Letter to relevant former MPs
DOCUMENT - 26
NOTE: TONE/MESSAGING/ POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
LETTER TO RELEVANT FORMER MPs (Patrick Bourke)
Dear
You may have seen reports about a High Court Judgment in relation to the Post Office, which
was issued earlier today. I wanted to provide you with the Post Office position in relation to
this.
This is the second Judgment in complex and long-running Group Litigation to resolve a
number of individual claims by mainly former postmasters. Despite attempts to resolve this
without recourse to the courts, legal proceedings in this case have been underway since April
2016 and the case is being heard in phases through separate trials about technical,
operational and contractual matters.
The claims span a period of around two decades, during which there have been significant
changes in our business with improvements to our culture, processes and technology.
The latest Judgment in the litigation covers technical matters relating to Post Office’s computer
system, Horizon, including our legacy system which was replaced in 2010. It is another stage
in working towards resolving the individual cases, which we are of course keen to do.
[NOTE —- THIS LINE MIGHT BE EXCLUDED, DEPENDENT ON JUDGEMENT: The Judgment
is detailed and it will take time to consider it fully but I want to provide reassurance that the
Court's findings do not affect the products and services the Post Office provides for customers
through its network of 11,500 Post Offices.]
[WORDING SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST JUDGMENT: I
can also reassure you regarding our Horizon system. We are confident that overall Horizon is
robust, comparing well with systems used by other retail and financial services companies
each day. Both independent experts, for Post Office and the claimants in the case, on
opposite sides of the litigation, confirmed this.]
Horizon processes around 47 million transactions a week, more than £60 billion worth a year.
There is reconciliation every day, every, month, every year, with the systems of major
organisations including high street banks, utility companies and Government departments,
giving confidence in the many products and services we provide.
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Of course no system can ever be said to be perfect and we’re working as hard as ever to make
improvements.
What the Judgment underlines [very strongly] is that we must continue to do better in the ways
in which we support our postmasters to operate their branches. We need to make it easier for
postmasters to avoid problems and we need to resolve any issues they do have more quickly.
For the past 12-18 months we have had a particular focus at every level of the business to
build a better partnership with our postmasters. Measures we've taken include improvements
to recruitment, training and operational support, alongside enhancements to our technology.
We're working closely with postmasters in making all these improvements. They are best
placed to tell us what makes it easier for them to operate Post Office branches more
effectively.
It's of the utmost importance to us that our postmasters receive the help and support they need
from us in serving millions of customers throughout the UK every day. We’re committed to
continuing to improve.
If you would like more information please get in touch with me.
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Postmasters
Context
The vast majority of postmasters have shown little interest in the GLO to date. Proactive
communications following the Common Issues Judgment in March resulted in [x] enquiries
from postmasters (a proportion of whom are disaffected and frequent negative commentators).
In recent postmaster forums and through other engagement led by the field team issues from
the GLO are not registering as a concern and their priorities are around growing business and
remuneration.
However, the Judgment from the Horizon Issues Trial will potentially increase interest, concern
and queries, given that there will likely be greater media coverage about a judgment
concerning a large-scale computer system. Postmasters will need to be reassured about the
wider actions Post Office is taking to improve and help support the value of their businesses,
as well as in the robustness of Horizon itself.
The programme of improvements that has been continuing this year — including the new field
team structure and changes to the Branch Support Centre — provide evidence in our narrative
that Post Office is listening to its postmasters and working more collaboratively with them. The
recently announced improvements to postmaster remuneration further underline the business’s
commitment to the relationship.
Handling approach
There will be proportionate and measured communications directly to postmasters (Memoview
and One). The communications will underline the programme of improvements and signpost
to further information. Area Managers and other teams engaging with postmasters will be
equipped with briefing and a process is in place for handling queries wherever they arise,
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Collateral
Postmaster Q&A
DOCUMENT - 6
updated 21/10/2019
NOTE: TONE/MESSAGING/POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
MASTER Q&A _v9_- REACTIVE
FOR INTERNAL USE AND INTERNAL AUDIENCES
Litigation/ Trial outcome and next legal steps
Q. What is the Group Litigation about?
The litigation is part of a long-running dispute between Post Office and a group of mostly
former postmasters who have made serious allegations about technical, operational and
contractual matters. The Judge has ordered that the case is heard in a series of trials. The first
trial (Common Issues Trial) was primarily about determining the legal construction of the
contract between Post Office and postmasters and the second trial (Horizon Trial) was about
technical matters concerning Post Office’s Horizon computer system. Further hearings are
scheduled through into 2020.
Q. What is the cost of the litigation so far and where is the money coming from?
We have set out in our ARA 2018/19 the position regarding costs relating to the litigation.
Costs of £20m are included in exceptional items (2017/18: £3m),
The Court has and will continue to review costs of both Post Office and the claimants through
the litigation, which is complex.
[The Post Office Board and Group Executive continue to keep the litigation under very close
review. At the same time, the business has prioritised a programme of work to improve the
ways in which we work with current postmasters, operating around 11,000 Post Office
branches throughout the UK.]
Q. What are the main findings of the Horizon Issues Judgment?
[tbe — from found/ not found document to be agreed when Judgment received]
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Q. The Judge has ruled/ commented that the Horizon system is fundamentally flawed and
not fit for purpose. Do you agree with this?
The Judgment is very detailed and we are studying it carefully. We are working with Fujitsu to
make improvements and we take the comments made very seriously.
But it is important to underline that, whilst no large-scale IT system is perfect, independent
experts on both sides of the litigation confirmed during the trial that Horizon is robust and
compares well with similar complex IT systems used by other retail and financial services
companies.
Context is also important: Horizon processes around 47 million transactions a week, more than
£60 billion worth a year. There is reconciliation every day, every month, every year, with the
systems of major organisations including high street banks, utility companies and Government
departments.
NB For example, banking transactions are correlated back to banks’ individual systems and
have done so for years. It is the banks’ own systems that issue authorisation to Post Office via
an external company called VocaLink for each and every transaction. VocaLink issues a report
each day called an LREC (Link Reconciliation) which tells Post Office and every bank who
owes what to whom for settlement the next day. This is an industry-wide mechanism that
mirrors the standard ATM networks, covering some 3-4 billion transactions a year.
Q. Do you accept that the IT failures identified in the trial could have been responsible
for financial discrepancies at branch level?
This Judgment does not determine the outcome of any individual claims. The purpose of the
Horizon Issues trial was to establish facts about particular technical matters concerning the
Horizon computer system.
[Post Office’s position — as outlined in its closing submission at trial — is that whilst no large-
scale IT system can be perfect, it is overwhelmingly unlikely that any significant amount of the
overall shortfall claimed was caused by the matters the claimants complain of regarding the
system. Independent experts on both sides of the litigation confirmed during the trial that
Horizon is robust and compares well with similarly large and complex IT systems used by other
retail and financial services companies.]
Q. Will you appeal the Horizon Issues Judgment?
We are studying the Judgment in detail and considering next steps.
Q. Why doesn’t Post Office settle these claims now?
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[tbc if timings for mediation remain agreed and dependent on agreed public statement re the
process: We have been keen to engage in mediation with the claimants and we are pleased
that they have now agreed a process/ timetable for this. Mediation will begin on 27 November
2019.
We believe that, by entering into mediation in good faith, both parties have the opportunity to
resolve the individual cases underlying the litigation and bring them to a conclusion.
The process provides for candid dialogue between the parties, facilitated by an impartial and
experienced mediator in a confidential environment.
Whilst we recognise the complexities of the issues involved we hope that, with the positive
participation of both sides, we might be able to find a path to avoid further prolonging the
litigation.
Both parties have agreed that the necessary confidentiality of mediation will be respected and
will not be making public comments about its details during the process.]
Q. What does this mean for cases where people have been prosecuted?
The Criminal Cases Review Commission is investigating a number of cases. Post Office is of
course fully co-operating with the CCRC but it is not appropriate to comment whilst their work
continues.
Q. How will the individual cases in the Group Litigation be decided?
The case is complex and is being heard in stages, as a series of trials. The two trials held so
far (Common Issues and Horizon Issues) do not determine liability or the individual claimants’
cases, which have not yet been examined in detail. Further hearings in the litigation are
scheduled through to 2020. [If mediation dates remain agreed: At the same time we have
been keen to engage in mediation with the claimants and we are pleased that they have now
agreed a process and timetable for this. Mediation will begin on 27 November 2019.
We believe that, by entering into mediation in good faith, both parties have the opportunity to
resolve the individual cases underlying the litigation and bring them to a conclusion.
The process provides for candid dialogue between the parties, facilitated by an impartial and
experienced mediator in a confidential environment.
Whilst we recognise the complexities of the issues involved we hope that, with the positive
participation of both sides, we might be able to find a path to avoid further prolonging the
litigation.
Both parties have agreed that the necessary confidentiality of mediation will be respected and
will not be making public comments about its details during the process.]
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Q. What is the position regarding the Post Office seeking to appeal the Judgment from
the first trial (Common Issues)?
Post Office sought permission to appeal from the Court of Appeal on 18 June 2019 and the
Court will hear this application on November 12 2019.
Q. Is Post Office now anticipating many further claims?
The purpose of the litigation is to resolve the cases of the individual claimants included in the
Group Litigation Order.
The Group Litigation Order was advertised and promoted by the claimants’ legal team for eight
months, as specified by the Court. There are 555 claimants with complaints which span the
past two decades, representing a very small proportion of people who have worked in our
network using our systems during that time.
Q. If Post Office loses the litigation will all postmasters be potentially entitled to
compensation whether they are part of GLO or not?
The purpose of the litigation is to resolve the individual claims that are part of the Group
Litigation Order. It is also important to underline individual claims have not yet been examined /
many legal matters concerning individual cases not yet determined, so it is not possible to
predict the outcomes from the overall litigation.
Q. How are the costs of litigation — and potential compensation — going to affect
remuneration of current postmasters?
We're committed to improving the remuneration of our postmasters and the litigation does not
affect this. We have already announced increases, worth some £20m a year, and the findings
of a pay review will be reported in November. [Include latest information if announced ahead
of Judgment].
Q. Is Post Office likely to go out of business?
[No. We've continued to increase our trading profits (from £25m to £60m over the 2018/19)
period and we’re making steady progress. We have a particular focus on improving support
for postmasters who run our branches — all of our trading profit is invested back into
improvements for postmasters and customers.
[We have a strong foundation from which to move forward.
[Regarding financial impacts from the litigation, we have outlined the current position in
2018/19 ARA: We are currently unable to determine whether the outcome of these
proceedings would have a material adverse impact on the consolidated position of the Group
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and we're unlikely to be able to do so until the Court has made further determinations about
the value of their claims. The Directors continue to keep this under close review.]
Q. Will Government step in with financial support?
It's not appropriate to discuss/ speculate about outcomes of continuing litigation.
[We have outlined the current position in 2018/19 ARA: We are currently unable to determine
whether the outcome of these proceedings would have a material adverse impact on the
consolidated position of the Group and we're unlikely to be able to do so until the Court has
made further determinations about the value of their claims. The Directors continue to keep
this under close review.]
Postmaster Contracts
Q. What is happening to postmaster contracts, following the first (Common Issues) trial?
The Judgment from the first trial made criticisms of Post Office which we take extremely
seriously. We are making changes that focus on improving the ways in which we work together
with our postmasters.
We're working closely with postmasters as we make these changes, to ensure they respond to
their needs as well as those of the business, making branches simpler to operate and to
prevent or reduce risks.
A programme of change activities is underway and this includes incorporation of lessons
learned from the litigation. With the involvement of postmasters, the business is reshaping its
support offer to them. A new support model is being created which increases face- to-face
time with relationship managers in the field; plans to reduce common causes of transaction
corrections; a new loss prevention function with new leadership focussing on an early
intervention approach to prevent losses from occurring in the first place; recruitment and
onboarding is being improved through better pre-screening questions, a more user-friendly
website and streamlined electronic business plan; a redesigned training offer for new and
existing postmasters will reduce the likelihood of operational errors; additional trainers and
classroom capacity are in place; the new field team structure provides the support of an area
manager to every Post Office branch regardless of size or location. Additionally agent
remuneration is being reviewed, with a qualitative and quantitative approach to determine
recommendations.
Q. Does my contract need to change as a result of the findings of the second trial?
[We are studying the Judgment in detail. We will continue communicating with you about
changes we're making in the business.
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[It's important to understand the context of the litigation. Its purpose is to resolve a number of
individual claims which span a period of around two decades].
Q. What has changed in the way branches are operated/ losses handled?
We're focussed on a more proactive and interventionist approach to prevent losses occurring
in the first place.
We've established our new field team to build better relationships with branches and
introduced the new Branch Support Centre (replacing NBSC) which works more closely
alongside the IT Helpline team. We've introduced a tiered support system so that issues can
be more quickly and effectively escalated, investigated and resolved. We are receiving good
feedback from branches about the changes.
A new Loss Prevention team is helping to better protect postmasters from external crime and
security threats, while also refining processes to help reduce human errors and help
postmasters to run compliant businesses. We are also making changes which improve the
quality and transparency of our audit process.
For new postmasters, we are providing a single point of contact through their application and
‘onboarding’ process and Branch Support Managers have been introduced to support new
postmasters for up to six months to help embed their training and ensure postmasters and
their teams are set up for success.
Q. As a postmaster, am I still legally liable for the accuracy of my branch accounts?
Both the Post Office and postmasters have responsibilities and obligations to each other. The
improvements we're making in the ways in which we work with postmasters are focussed on
providing better support.
Accurate information from branches is essential to help us to do this. Because we cannot be
present in every branch, it is only postmasters who can tell us how much cash and stock they
are actually holding, for example. It is therefore very important that accurate cash declarations
are made each day. This can help identify any discrepancies more easily and effectively. The
monthly branch trading accounts must similarly be completed accurately.
If you have a balancing or other issue, tell us quickly via the branch support centre [contact
XXxx].
If you have questions about your contract and/ or obligations you should contact your Area
Manager.
Q. I now want indemnity against any losses — how can I get the assurance that I will not
be held liable?
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Postmasters are not responsible for shortfalls caused by Horizon.
Both the Post Office and postmasters have responsibilities and obligations to each other. It’s
very important that if you have a shortfall you are having difficulty investigating or explaining
that you contact us as soon as possible. Contact the Branch Support Centre (formerly NBSC)
If you have technical issues contact the IT helpdesk on [xxx].
We know how worrying it can be if you have a shortfall that you don’t understand. We are
making significant improvements to better support you [point to latest communications).
If you have questions about your contract and/ or obligations you should contact your Area
Manager.
Q. I no longer trust Horizon and don’t wish to trade. Will I be in breach of contract?
We want our postmasters to feel confident about operating their branches and we’re
continuing to make changes focussing on support. If you have concerns about contractual or
other matters you can raise these with your Area Manager who will work with you to try to
resolve them.
Losses
Q. Ihave a loss which I can’t explain — is this the fault of Horizon?
It's very important that if you have a shortfall you are having difficulty investigating or
explaining that you contact us as soon as possible. Contact the Branch Support Centre
(formerly NBSC) [xxxx].
If you have technical issues contact the IT helpdesk on [xxx]
We know how worrying it can be if you have a shortfall that you don’t understand. We are
making significant improvements to better support you [point to latest Communications]
Q. Why should postmasters pay back any losses which can’t be explained?
We know how worrying it can be if you have a shortfall that you don’t understand. We are
making significant improvements to better support you [point to latest communications)
It's very important that if you have a shortfall you are having difficulty investigating or
explaining that you contact us as soon as possible. Contact the Branch Support Centre
(formerly NBSC) [xxxx] who will help in finding the reason for discrepancies.
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Both Post Office and postmasters have responsibilities and obligations to each other. If you
have questions or concerns about these please contact your Area Manager.
Q. Ihave past losses that I have not been able to explain — how can I have these
investigated?
[tbe] Contact the Branch Support Centre [Xxxxx] who will assist in helping find the reason for a
discrepancy. There is also a new team which can provide additional further support to
investigate branch discrepancies if necessary.
Discrepancies that still remain unresolved are sent to Support Services Resolution Team.
[expand]
Q. How dol claim historical losses back?
[If you are disputing losses that you repaid you should contact us in writing explaining your
issue and when it first arose. We will aim to respond as soon as possible [Insert contact
address].
Q. Will historic transaction corrections be reviewed/ what’s the process for raising
concerns?
If you have a concern about losses contact the Branch Support Centre [xxxx]. Discrepancies
that still remain unresolved are sent to Support Services Resolution Team.
If you are disputing losses that you repaid you should contact us in writing explaining your
issue and when it first arose. We will aim to respond as soon as possible [Insert contact
address].
Q. How can Post Office be confident of reconciliation with clients?
Reconciliation takes place between our back-end accounting systems and those of clients.
For example, banking transactions are correlated back to banks’ individual systems and have
done so for years. It is the banks’ own systems that issue authorisation to Post Office via an
external company called VocaLink for each and every transaction. VocaLink issues a report
each day called an LREC (Link Reconciliation) which tells Post Office and every bank who
owes what to whom for settlement the next day. This is an industry-wide mechanism that
mirrors the standard ATM networks, covering some 3-4 billion transactions a year.
Postmaster training
Q What is changing to postmaster training?
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We've created an improved training offer for new and existing postmasters to reduce the
likelihood of operational errors and improve the overall customer experience. In April we
introduced a Business Support Management Team who support newly recruited postmasters
for six months and existing postmasters as needed. Post Office has 58 trainers overall, 18
classroom locations across the UK and 40 trainers providing in-branch training. New training
modules have been developed and have been running from August 2019. These modules
address some of the bigger risk drivers such as back office and balancing.
Q. I have staff who I think need extra Horizon training, how do I request this and is there a
cost to me?
[tbc — Staff training is the responsibility of postmasters but we very much want to help you
deliver this
There is no cost to the Postmaster for training.
Training is not just available for new Postmasters and can be accessed by all postmasters and
their teams if this is needed. Pleasélcontact xxxxx to discuss the training you feel would help
with the operation of your branch ]
Postmaster engagement
What are you doing to make sure that postmasters’ views and ideas are heard and acted
upon?
Through our new field team, which provides the support of an Area Manager for every branch,
we have been introducing and trialling a range of additional ways of ensuring increased
contact with our postmasters. It’s vital they are closely involved with the improvements we're
making, so that these properly reflect their needs. Since April our field teams have been using
Whatsapp, individual email/ newsletters, networking events and business development
workshops as well as making visits to branches. In August our regional managers started
holding regular business update calls, drop-in listening sessions/ emails and in London we’ve
started a Facebook trial.
We're continuing to respond to postmaster feedback: Postmasters told us they’d like more
support on using and making the most of social media. Earlier this year we launched our new
social media guidelines which include everything they need to get started on Facebook,
Twitter, Instagram and Snapchat. The guidelines also cover best practice tips and guidance to
help them stay on brand and professional.
They also told us they would welcome toolkits of ready-made images and text to save them
time. In the coming weeks we'll be launching new product toolkits, thanks to great ideas and
feedback from postmasters.
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This is currently being piloted using an app of pre-loaded approved content that postmasters
can use.
Postmasters also wanted better retail advice to help grow their business and improve their
store. We have developed new retail basics training which we are trialling in three regions. This
will be rolled out across all regions between now and February. We have also partnered with
food and grocery industry leaders IGD, and all of our Area Managers will be completing the
online training programme.
For members of the NFSP, its Retail team is also available to provide personalised support
and the NFSP will also work with the Area Managers to identify further opportunities for retail
support.
Postmasters have said they want more opportunities to share ideas, discuss issues and also
meet other postmasters to learn about how they run their branch. We have been holding
networking events across the country. More than 80 have been held or are planned before the
end of 2019, and 41 are already planned for 2020.
There are no plans to replace Horizon - we are focussed on continual developments and
improvements, working closely with Fujitsu and our postmasters.
In 2018/19 we completed a roll-out of new equipment to all our branches and transformed our
back office systems. Our plans include taking action to improve some of our transaction
processes and system design. Examples include the new standardised approach to reversing
Parcelforce transactions that we communicated in August; additional reminder prompts to
postmasters for aspects of banking transactions; simplifying reversal process for Scottish
Power Smart Metering.
Q. What does Horizon being generally robust/ not robust actually mean?
[tbc: Robustness refers to the ability of a computer system to operate accurately and cope
effectively with errors. Both independent expert witnesses in the trial agreed that Horizon is
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robust, comparing well with similar systems across retail and financial service sectors which
have to be highly reliable.]
The term ‘remote access’ is often used to refer to malicious tampering by people unauthorised
to enter a system eg hackers. There is no evidence that this has ever occurred with Horizon.
Post Office has ‘read only’ access to transaction histories and reporting to enable, for example,
work in back office reconciliation. Fujitsu, as the supplier of Horizon, has remote access
capabilities for maintenance and support purposes.
Access to the Horizon system that enables changes to branch transaction data is not required
for day to day support and is restricted to a very few, authorised, specialist personnel. In the
rare and unlikely circumstances in which these Fujitsu personnel might need to undertake work
which could affect branch accounts, postmasters are contacted. A secure audit trail is retained
which shows the detail of any Fujitsu intervention and a record of the contact with postmasters
is also kept securely. There have been very few instances of this Fujitsu specialism over the
past 20 years. The IT expert for the claimants estimated less than 30, compared to the 3
million branch accounts in existence.
[NB: During the trial Post Office defined the term ‘remote access’ as the ways in which Post
Office and/ or Fujitsu can access the Horizon system and insert, edit or delete transaction data
in branch accounts without being physically present in a branch.]
[There’s no evidence that there has ever been malicious tampering. There are stringent
security measures in place]
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{In the rare and unlikely circumstances in which Fujitsu personnel might need to undertake
work which could affect branch accounts, postmasters are contacted. A secure audit trail is
retained which shows the detail of any Fujitsu intervention and a record of the contact with the
postmaster is also kept securely. It’s also important to stress that there have been very few
instances of remote access over the past 20 years — the IT expert for the claimants said the
number was less than 30, compared to the 3 million branch accounts in existence.]
A computer ‘bug’ is a fault in the software (computer programmes) of a computer system which
causes an unintended result. Many computer bugs do not cause significant issues or problems
and there are numerous effective ways of monitoring and fixing them — one of the reasons, for
example, we receive regular ‘software updates’ on our mobile phones and other devices. No
IT system is perfect and there is always the possibility of bugs. That is why effective
countermeasures which prevent or detect and fix them are important and form a central part of
the robustness of a system.
System problems are tracked and focussed on in priority order. Any incident that could have
the possibility of causing significant postmaster difficulty is treated as high priority. This means
a ‘technical bridge’ is set up with all relevant partners, plus the Branch Major Incident process
is invoked. This enables the technical solution to be worked through more quickly, whilst
concurrently the Branch Operations team prepare communications to branches and ensure the
Branch Support Centre team are aware and able to help.
There is a 24/7 IT service desk for postmasters to raise incidents. These are then triaged,
logged and dealt with accordingly.
Additionally, if postmasters are unsure of anything in the system the Branch Support team are
available to help ‘walk through’ transactions over the phone and additional training can also be
provided.
[Both independent experts, for the claimants and Post Office, on opposite sides of the
litigation, agreed that Horizon is robust overall, comparing well with systems used by other
retail and financial services companies each day.]
It's important to understand that bugs exist in any large and complex IT system and the
management of a system like Horizon involves processes for continuous monitoring, counter
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measures and improvements. Many bugs do not cause significant issues or problems and
there are numerous effective ways of fixing them — one of the reasons, for example, we
receive regular software updates on our mobile phones and other devices.
All of the bugs identified in the trial have been resolved.
Any incident that could have the possibility of causing significant postmaster difficulty is treated
as high priority. This means a ‘technical bridge’ is set up with all relevant partners, plus the
Branch Major Incident process is invoked. This enables the technical solution to be worked
through more quickly, whilst concurrently the Branch Operations team prepare communications
to branches and ensure the Branch Support Centre team are aware and able to help.
If you have queries or concerns about an issue you are experiencing you should contact the
Branch Support Centre]
There are numerous continuous countermeasures in place, audited on a regular basis, which
are prevent or detect technical issues, including bugs.
Counter measures include continual detailed analysis of system performance and of reports
from branches themselves. Many bugs do not cause significant issues or problems but there is
a dedicated team at Fujitsu which investigates any suspected problems. Those investigations
are documented and appropriate fixes rolled out. Any incident that could have the possibility of
causing significant postmaster difficulty is treated as high priority. This means a ‘technical
bridge’ is set up with all relevant partners, plus the Branch Major Incident process is invoked.
This enables the technical solution to be worked through more quickly, whilst concurrently the
Branch Operations team prepare communications to branches and ensure the Branch Support
Centre team are aware and able to help.
Q. Where can I find published information about the various bugs — including the 29°
discussed in Court - so that I know what to look for in my branch?
All of the bugs identified as part of the litigation have been resolved.
If you have a technical issue please contact the helpline so that they can help you resolve it. If
you have discrepancy you do not understand please contact the branch support centre.
We are continuing to improve our communications as part of making it easier for postmasters
to operate branches and are committed to informing postmasters of issues that could have the
potential to impact their accounting.
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[[Known error logs (KELs), now called Knowledge Based Faults (KBFs), are guidance notes
for helpline staff that document known issues, with their workarounds and fixes. They are
‘living’ documents that are not designed to provide a history of a particular system or support
process but rather to provide knowledge that may be applicable to potential reported issues
(Peaks) being addressed by Fujitsu.
[Known errors’ are detected by Fujitsu, through their incident and problem management
processes and additionally through reports from Post Office branches via Post Office helplines/
support functions.
[Any incident that could have the possibility of causing significant postmaster difficulty is
treated as high priority. This means a ‘technical bridge’ is set up with all relevant partners, plus
the Branch Major Incident process is invoked. This enables the technical solution to be worked
through more quickly, whilst concurrently the Branch Operations team prepare communications
to branches and ensure the Branch Support Centre team are aware and able to help.
[Area Managers and the Branch Support Centre are kept updated with information so that can
provide relevant help and support to postmasters as needed].
Q. What are the current Known Faults that are logged?
[Issues included in Knowledge Based Faults vary and do not, of course, remain static as they
are investigated and appropriate actions taken. So it’s important to call the IT helpline if you
have a technical issue or the branch support centre for other help.
Any incident that could have the possibility of causing significant postmaster difficulty is treated
as high priority. This means a ‘technical bridge’ is set up with all relevant partners, plus the
Branch Major Incident process is invoked. This enables the technical solution to be worked
through more quickly, whilst concurrently the Branch Operations team prepare communications
to branches and ensure the Branch Support Centre team are aware and able to help.
We are confident in the overall robustness of the Horizon system and that is compares well
with systems used by other retail and financial services companies every day. Both
independent experts, for Post Office and the claimants, on opposite sides of the litigation
confirmed this.
Horizon processes around 47 million transactions a week, more than £60 billion worth a year.
There is reconciliation every day, every month, every year, with the systems of major
organisations including high street banks, giving confidence in the many products and services
we provide.
Of course no system can ever be said to be perfect and we’re working as hard as ever to make
improvements.
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ae)
We are confident in the overall robustness of the Horizon system and that is compares well
with systems used by other retail and financial services companies every day. Both
independent experts, for Post Office and the claimants, on opposite sides of the litigation
confirmed this. Effective countermeasures which prevent or detect and fix bugs are important
and form a central part of the robustness of a system.
But of course we understand that it can be very worrying if you experience an issue in your
branch. If you have a discrepancy in your branch accounts that you do not understand you
should contact the Branch Support Centre as quickly as possible so that they can assist you in
finding the reason.
No IT system is perfect and there is always the possibility of bugs, although it is worth
underlining that many cause no significant issues.
We are committed to informing postmasters of issues that could have the potential to impact
accounting.
We are continuing to improve our communications as part of making it easier for postmasters
to operate branches. We are committed to informing postmasters of issues that could have
the potential to impact their accounting.
Information on lower level issues, such as restarting a self-service machine in case of error, is
available via Branch Hub or the Branch Support Centre.
We are continuing to make improvements to reduce the risks some human errors can create.
Fujitsu are delivering these changes and further changes as appropriate. We already have a
series of initial Horizon changes that are in design and development for release to the network
in October. Following this initial release, we have scheduled further Horizon software release
windows so that we can be ready to introduce more improvements as needed.
Recent examples: the new standardised approach to reversing Parcelforce transactions that
we communicated in August; additional reminder prompts to postmasters for aspects of
banking transactions; simplifying reversal process for Scottish Power Smart Metering.
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Q. Who do I speak to if I have an idea on an improvement/ want to get involved in
improvement work?
We welcome postmasters sharing ideas and working with us to improve. You can raise this
with your Area Manager.
Q. If the media approach me what should I do?
s] / refer media directly to the
As usual, please notify the Post Office press office
press office.
Yes.
Post Office and Fujitsu have a long-standing relationship. Under their contract, Fujitsu works
closely with Post Office maintaining and continually improving Horizon, the electronic point of
sale system which is used by all 11,500 Post Office branches throughout the UK.
Since the system was introduced, two decades ago, there have been not only major
developments in technology but also significant changes in the Post Office’s business. This
includes moving into financial services, expanding our range of Government services and
expanding to cover everday banking through agreements with the UK’s High Street banks.
Post Office and Fujitsu have developed, improved and adapted Horizon throughout these
changes. The system currently processes around £60 billion worth of transactions a year.
Both Post Office and Fujitsu are very alive to the fact that no large-scale IT system is perfect,
hence the importance of our strong counter-measures to prevent, detect and fix technical
issues, as well as reducing the risk of human errors.
In 2018/19 we completed a roll-out of new equipment to all our branches and transformed our
back office systems. We are also taking action to simplify some of our transaction processes.
[tbc. We are considering the Judgment — which covers a very long period of time, during which
there have been significant changes — in detail. Overall we have a strong and positive
relationship with Fujitsu, with shared ambitions. Both Post Office and Fujitsu are working more
closely with postmasters to better support them].
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[tbc :The Judgment covers a very long period of time, during which there have been significant
changes. We are carefully considering its detail but it’s important to underline that overall we
have a strong and positive relationship with Fujitsu and we are working closely together on
making improvements.]
The contract is until [&
1S details are commercially confidential.
Business changes [‘new normal’]
Q. You’re now making changes - so how can you still defend the litigation?
We have been continually improving, recognising the need to change the ways in which we
work with our postmasters and improve our technology. Criticisms made by the Judge have
brought some of this work into sharper focus.
The purpose of the litigation is to resolve a number of individual claims which span a period of
around two decades. The case is being heard in stages and the details of the individual cases
have not yet been examined.
Q. What is the detail of all the various changes being made?
There is a programme of change activity across the business, including:
Better support for postmasters:
A new field team provides every postmaster with access to an area manager. The field teams
can, for example, help identify and provide access to additional training if needed or advise on
issues or concerns raised. Area teams are arranging face to face sessions with postmasters —
so far around XXXXxx visits have been carried out to Post Offices across the country. Regional
managers are holding regular calls (every x) and there are also networking events and
business development workshops and ‘drop-in’ listening sessions. For new postmasters, we
are providing a single point of contact through their application and ‘onboarding’ process and
Branch Support Managers have been introduced to support new postmasters for up to six
months to help embed their training and ensure postmasters and their teams are set up for
success.]
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Area Managers [have access/ willbe able t6’access] a new ‘Branch Insight’ tool which will
provide [instant information = _XXXXXX???7] enabling faster and more effective analysis of a
branch’s performance so that appropriate actions can be taken to prevent/ address problems]
New Branch Support Centre, replacing NBSC and working alongside the IT Digital Service
Desk. BCS uses a tiered support system so that postmaster concerns and queries can be
more quickly and effectively escalated, investigated and resolved. Anew team has been!
established to handle disputes relating to transaction corrections [EXPAND]
We've created an improved training offer for new and existing postmasters to reduce the
likelihood of operational errors and improve the overall customer experience. Post Office has
58 trainers overall, 18 classroom locations across the UK and 40 trainers providing in-branch
training. New training modules have been developed and have been running from August
2019. These modules address some of the bigger risk drivers such as back office and
balancing.
Loss prevention:
The new Loss Prevention function with new leadership are moving loss prevention capability
from a reactive and largely manual function to one that uses more root cause analysis and
data analytics to look ahead and make interventions that prevent losses from happening in the
first place. This provides benefits for branch operators as well as Post Office, with interventions
such as troubleshooting guides through to targeted training and support to improve compliance
and performance. Post Office will use a redesigned set of KPls, processes, risk assessment
tools and case management software to ensure a clear, robust and transparent end to end
processes.
For example, the new standardised approach to reversing Parcelforce transactions that we
communicated in August; additional reminder prompts to postmasters for aspects of banking
transactions; simplifying reversal process for Scottish Power Smart Metering.
We have a series of intitial Horizon changes that are in design and development for release to
the network in October. Following this we have scheduled further Horizon software release
windows so that we can be ready to introduce more improvements as needed.
Q. How is my branch affected by the changes?
Our aim is to make operating your branch simpler and to better support you. We're making
some of our processes faster and easier; we’re making changes to Horizon to make some
transactions more straightforward and we’re improving the support, help and training we
provide (see previous answers for details)._
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Branch customers
Q. My branch’s customers are asking if the system is safe and whether their
transactions will be accurately processed — how can I reassure them?
[NOTE — MAY NEED TO EXCLUDE THIS LINE, DEPENDENT ON JUDGE’S COMMENTS: It’s
really important to reassure our customers that the products and services we provide for them
are not affected by the Group Litigation].
[WORDING SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST JUDGMENT -
Customers can be assured they can depend on our branches and have confidence in the
system. As both the independent experts for the Claimants and the Post Office, on opposite
sides of the litigation confirm, Horizon compares well with systems used by other retail and
financial services companies every day.]
Horizon processes around 47 million transactions a week, more than £60 billion worth a year.
There is reconciliation every day, every, month, every year, with the systems of major
organisations including high street banks, giving confidence in the many products and services
we provide.
Q. What is Post Office doing do to prevent loss of business to branches as a result of
customers losing confidence?
[tbe] We are communicating widely to reassure our clients and customers. [WORDING
SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST JUDGMENT - Our statement
to the media [link] makes it clear that independent experts agree that Horizon is robust, and
compares well with systems used by other retail and financial services companies ever day.
Customers can continue to have confidence in the reliability of our branches.]
Horizon processes around 47 million transactions a week, more than £60 billionworth a year.
There is reconciliation every day, every, month, every year, with the systems of major
organisations including high street banks, giving confidence in the many products and services
we provide.
The litigation involves a small proportion of mainly former postmasters with individual
complaints spanning the past two decades so it is important to understand the context.]
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Speaking brief for colleagues speaking to Postmasters (pre-judgment)
DOCUMENT: 33
PRE JUDGMENT SPEAKING BRIEF FOR POSTMASTERS/ POL COLLEAGUES — VERBAL
ONLY — NOT FOR EMAIL
POST OFFICE GROUP LITIGATION
Background
e The Group litigation involving Post Office is part of a long running dispute between Post
Office and a group of mostly former Postmasters who have made serious allegations
about technical, operational and contractual matters. It covers a long period of time,
dating back to 2000 in some cases — much of which relates to a period before we
became an independent business.
e Itis complex and the case is being heard in stages, with a series of trials. The first trial
was about determining the legal construction of the contract between Post Office and
Postmasters and the second trial was about technical matters concerning Post Office’s
Horizon computer system. The second trial concluded on 2 July and the Judge has
retired to consider his judgment.
e Neither of these trials will determine liability or the individual claimants’ cases. Further
trials are scheduled into 2020.
First Trial (Common Issues Trial)
e@ The focus of the first phase of the legal action was to establish the correct meaning and
interpretation of the contract between the Post Office and Postmasters.
e The principal finding was that the contract between Post Office and the Postmasters is
a relational contract which includes numerous additional obligations that have been
implied into the contract.
e Beyond the legal finding, the judgment also made criticisms of Post Office behaviours,
and we've taken these extremely seriously.
e It’s really important to underline that the Court's findings do not affect the products and
services we provide for our millions of customers through our UK network of 11,500
Post Office branches
e We have also made huge improvements in the culture and practices of the business in
recent years, but the Judge’s comments remind us that we must always continue to do
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better. We have taken the criticisms on board and we’re taking action throughout our
organisation
Our first priority is to improve the management of our relationships with Postmasters.
This work is already underway with every Postmaster now being supported by an Area
Manager, further improvements are being made to training, ongoing support and a full
review of Postmaster remuneration which is expected to be completed by the autumn.
Our Postmasters are the backbone of our business, their involvement is key to the
changes we’re making. Area Managers hold regular drop in and phone in sessions to
update and share information and a forum (Branch User Forum) with postmasters and
colleagues takes place monthly to review product design and changes.
We're also making changes within the Branch Support Centre to enable faster
investigations and responses and improve prevention and resolution of any problems.
Second Trial (Horizon Trial)
The second trial, about technical matters concerning Post Office’s Horizon computer
system concluded on 2 July. The judge has retired to consider his judgment. This is not
expected to be handed down until the Autumn
We don’t know what the outcome of the judgment will be and we do not expect to be
notified by the Court of the date it will be made public until very close to that time.
It is important to underline that all the indications are that Horizon is robust, comparing
well with similar systems across retail and financial service sectors which have to be
highly reliable - this is the view of both independent expert witnesses who have given
evidence in the litigation and is further supported by the fact that the system has been
used successfully by 500,000 postmasters and colleagues since its introduction and
around 47 million transactions every week are successfully processed for customers.
These transactions are undertaken on behalf of other large-scale organisations,
including high street banks, Royal Mail, Government Depts and major utility companies.
The accuracy of transactions is subject to numerous checks, including reconciliation
with their systems
In recent years we have improved and invested in technology and this remains a
priority -we’ve installed new IT equipment in every branch and transformed our back
office systems which handle £60 billion a year in financial transactions.
But no large IT system is perfect and we accept we need to do more work with
postmasters when problems do arise. Changes we’re making include measures to
further reduce human errors in branches (such as mis-keying) and to respond more
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quickly and transparently to concerns raised by our postmasters. Our improved training
will also focus on Horizon and back office processes.
When the judgment is handed down we will contact you with our response.
You might see media coverage about the trial around this time which may cause
concern, please be assured we will have plans in place to respond.
Appeal (reactive only)
Post Office sought permission to appeal the Common Issues judgment at a hearing on
23 May 2019 where the Managing Judge refused permission. On 18 June we made
an application to the Court of Appeal for permission. We haven't yet received a
response.
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Speaking brief for colleagues speaking to Postmasters (post-judgment)
DOCUMENT - 34
NOTE: TONE/MESSAGING/POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
REACTIVE BRIEF FOR AREA MANAGERS
KEY MESSAGES
e This Judgment is another stage in working towards resolving a number of individual
claims by a group of mainly former postmasters.
e We understand the concerns that everyone working in our business might have about
some of the issues [and criticisms] the Judgment raises. But [WORDING SUBJECT TO
FURTHER DETAILED LEGAL REVIEW AGAINST JUDGMENT we can have
confidence in the overall robustness of Horizon and that it compares well with systems
used by other retail and financial services companies each day. Both independent
experts, for Post Office and the claimants in the case, on opposite sides of the
litigation, confirmed this].
e Horizon processes around 47 million transactions a week, more than £60 billion worth a
year. There is reconciliation which includes the systems of major organisations we work
with, such as the banks. So we can and should have confidence in the products and
services we're providing.
e But of course no large scale IT system can ever be said to be perfect and we're
working hard to improve. This year we’ve made some Horizon design changes - for
Parcelforce and banking online transactions for example — to make things simpler and
there’s more of this to come.
e The Judgement underlines [very strongly] that we must continue to do better in the
ways in which we support you to operate branches. We need to make it easier for
problems to be avoided in the first place but if there is an issue we need to help get it
resolved more quickly. You will already have seen, I hope, communications about
improvements underway to do this including:
I. Our new field team structure building stronger relationships with you.
Il. Changes to the NBSC, now the Branch Support Centre, working more closely
with the IT helpline team, and structured so we can investigate concerns more
quickly and escalate them if needed.
Ill. Better training — classroom, online, in branch , including refresher training
IV. Our new loss prevention team improving protection of branches from external
crime and security threats and refining some of our processes to help avoid
human errors
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e If you have any questions or want further information you can email [xxxxxx] and we
will we be happy to help.
INTERNAL REACTIVE QUESTIONS AND ANSWERS TO BE INSERTED
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Branch closures: Asking a Postmaster to re-open
DOCUMENT - 35
NOTE: TONE/MESSAGING/POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
REOPEN A CLOSED BRANCH BRIEF (FOR AREA MANAGERS TALKING TO
POSTMASTERS WHO HAVE CLOSED THEIR BRANCH)
POST OFFICE GROUP LITIGATION — HORIZON ISSUES TRIAL JUDGMENT
I'm sorry to hear that you've closed your Post Office. I want to help you and make sure that we
provide the support you need, so can you let me know the reasons for closing your branch?
(Note the Postmaster’s concerns)
If the Postmaster is concerned about losses that have occurred in the branch.
Confirm what has happened - when and how much loss has occurred, what action has the
postmaster taken to seek support from Post Office, have they contacted the Branch Support
Centre. Make sure that the Branch Support Centre has all the information they need to help
the postmaster. Make a note of the branch support reference number so you can track
progress. Reassure the Postmaster we will support them through this process. Share a copy of
the Branch Support Guide with the postmaster.
If the Postmaster has lost confidence in Horizon or is concerned about using Horizon,
bugs in the system and /or remote access to system.
Explore and note what the issue is. If appropriate refer to the IT FAQs to reassure the
postmaster. Identify any training needs — reassure that you will arrange for additional
training/support. If there are losses have they notified the Branch Support Centre and make
sure that the Branch Support Centre has all the information they need to help the postmaster.
Make a note of the branch support reference number so you can track progress. Reassure the
Postmaster we will support them through this process.
Key Messages to reassure Postmaster
The Judgment recently handed down by the court focuses on our Horizon system and it’s
another stage in working towards resolving a number of individual claims by a group of mainly
former postmasters.
I understand that everyone working in our business may have concerns about some of the
issues [and criticisms] the Judgment raises. But I want to reassure you that [WORDING
SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST JUDGMENT : we can have
confidence in the overall robustness of Horizon and that it compares well with systems used by
other retail and financial service companies each day.
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Both independent experts, for Post Office and the claimants in the case, on opposite sides of
the litigation, confirmed this.
[NOTE: THIS LINE MIGHT BE EXCLUDED DEPENDING ON JUDGE’S COMMENTS: It's also
important to know that the products and services that we provide every day to millions of
customers are not affected by the litigation].
Horizon processes around 47 million, more than £60 billion worth a year. There is also
reconciliation with the systems of major organisations that we work with, such as the banks.
So we can and should have confidence in the products and services we're providing.
But of course no system is perfect and we’re working hard to improve. This year we’ve made
some Horizon design changes - for Parcelforce and banking online transactions for example —
to make things simpler and there’s more of this to come.
The Judgement underlines [very strongly] that we must continue to do better in how we
support you to run your branch. We need to make it easier for problems to be avoided in the
first place and if there is an issue we need to help get it resolved more quickly.
You may already have seen communications about improvements underway to do this:
Our new field team structure building stronger relationships with you.
Changes to the NBSC, now the Branch Support Centre which has been restructured so
we Can investigate concerns more quickly and escalate them if needed.
Better training — classroom, online, in branch , including refresher training
Our new loss prevention team improving protection of branches from external crime and
security threats and refining some of our processes to help avoid human errors
Our relationship with you is extremely important, you deliver our services to customers day-in,
day-out, and we want to make it easier for you to build a thriving business.
Reopening the branch
It's important that your customers can continue to get the essential services they need from
your branch, understandably they will be worried about the situation.
We will provide you with the support we’ve discussed and I'll contact you (frequency) to make
sure that you're happy with the support you're receiving.
Do you feel confident and reassured enough to reopen your branch? If so when do you think
you might want to do this? If yes confirm when branch will reopen.
Postmaster is unwilling to reopen the branch
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What else can we do to help you so that you are confident and reassured enough to run your
branch? (note the issues to report back to Regional Manager)
Can we display a poster in your shop so that we can reassure customers and let them know
where the alternative Post Offices are that they can visit? And are there any other places in the
local area that we can display a poster?
Can we arrange for a temporary postmaster to run the branch until we have worked through
these concerns/issues with you? This may take some time to put in place but could be an
option for you to consider so that customers can still visit your Post Office. If yes confirm that
you will contact them again with further details and explain that the postmaster will need to
agree the arrangements directly with the temporary postmaster.
We will contact you again in the next few days to agree next steps with you.
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Memoview
DOCUMENT: 11
NOTE: TONE/MESSAGING/POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
MEMOVIEW
MBS GLO Judgment
Audience: All Post Office branches
You may see news today about a legal Judgment concerning Post Office in the High Court.
XXXXXXX OUP XXXXXXXX (GE member) provides more information on a video on One
https:/Awww.onepostoffice.co.uk/
You can also listen to an audio message from xxxxx by calling 0845 601 1022, option x and
then option x.
We take the Judgment extremely seriously and lessons being learned through the litigation are
being taken on board. There is nothing more important to our business than our relationship
with you, the people delivering our services to customers every day and we are committed to
making it easier for you to build thriving businesses.
[NOTE THIS LINE MIGHT BE EXCLUDED, DEPENDENT ON JUDGE’S COMMENTS: It's
important to underline that the Courts findings do not affect the products and services we
provide for our millions of customers everyday]
We will communicate any changes to current branch processes and procedures that are made.
Otherwise, please continue as normal.
We'll be sharing further information with you in the coming days and if you have any questions
or concerns, please email xxxxxxxxx-or contact your Area Manager.
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Branch hub message
DOCUMENT - 12
NOTE: TONE/MESSAGING/POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
BRANCH HUB MESSAGE TO POSTMASTERS AND LINK TO ONE WEBSITE/ VIDEO
Audience: All postmasters signed up to Branch Hub (approx 1200)
Email subject: Important message from xxxxx: Court findings in the second phase of Group
Litigation
You may see news today about a legal Judgment criticising Post Office in the High Court.
I want to assure you that we take the Judgment extremely seriously and lessons being learned
through the litigation are being taken on board.
There is nothing more important to our business than our relationship with you, the people
delivering our services to customers day-in, day-out and we are committed to making it easier
for you to build thriving businesses.
Please take a moment to view this short video in which I provide some background and
hopefully answer questions you may have. (link)
[NOTE — THIS LINE MIGHT BE EXCLUDED, DEPENDENT ON JUDGE’S COMMENTS - It's
important to underline that the Court’s findings do not affect the products and services we
provide for our millions of customers through our UK network of 11,500 Post Office branches]
We will continue to keep you updated on any developments and the actions we are taking
following this judgment.
You can also ask us questions xxxxxxxx/ or talk to your Area Manager.
Thank you for everything that you and your teams do every day to serve our customers and
communities up and down the country.
Signature tbc xxxx
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IVR message
DOCUMENT - 13
NOTE: TONE/MESSAGING/POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
IVR MESSAGE - AUDIO TRANSCRIPT FROM VIDEO TO POSTMASTERS] — DELIVERED
BY [DEBBIE TBC]
You may have seen that today a second Judgment in the Post Office Group Litigation
has been handed down by the High Court. This Judgment focuses on our Horizon
system and it’s part of the preliminary stages of the very complex, long-running legal
case to resolve a number of individual claims by mainly former postmasters.
The Judgment raises a number of issues [and criticisms] but what I want to do straight
away is reassure you about is that [WORDING SUBJECT TO FURTHER DETAILED
LEGAL REVIEW AGAINST JUDGMENT: we can have confidence in the overall
robustness of Horizon and that it compares well with systems used by other retail and
financial services companies each day. Both independent experts, for Post Office and
the claimants in the case, on opposite sides of the litigation, confirmed this.]
[NOTE: THIS LINE MIGHT BE EXCLUDED, DEPENDENT ON JUDGE’S COMMENTS -
It's also important to make clear that the products and services that we provide every
day to millions of customers are not affected by the litigation]
Horizon processes around 47 million transactions a week, more than £60 billion worth a
year. These are reconciled every day, every, month, every year, with the systems of
major organisations including high street banks, utility companies and Government
departments, giving confidence in the many products and services we provide.
Of course no system can ever be said to be perfect and we’re working as hard as ever
to make improvements. In the past [x], months, working with our supplier, Fujitsu, we
have taken actions which include strengthening the ways the system is monitored and
software bugs identified and fixed when they do arise. We're also implementing some
design changes to further reduce the likelihood of human errors.
But what the Judgment underlines [very strongly] is that we must continue to do better
in the ways in which we support you to operate your branches. We need to make it
easier for you to avoid any problems in the first place but if you do have an issue we
want to help you resolve it more quickly. You will already have seen, I hope,
communications about all the improvements underway to do this.
Through our new field team you all have the support of an Area Manager and I very
much encourage you to raise concerns or questions with them and their team whenever
you need. You're also very welcome of course to contact me.
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[We've also made/ we are making] changes to the NBSC, now the Branch Support
Centre, working more closely with the IT helpline team. Changes in the way the centre
works means we can investigate concerns more quickly and escalate them if needed.
[We're getting good feedback from branches on this].
We're improving our training — whether you are new to the business or have been with
us for years. We want to make sure you have the training that meets your needs —
classroom, online, in branch - including refresher training.
A new loss prevention team is in place to help better protect your branch from external
crime and security threats and they're also refining some of our processes to help you
and your teams avoid human errors.
We're getting the input of postmasters on improvements. Serving customers every
day, handling millions of transactions, you're best placed to tell us what makes it easier
for you to operate your branch effectively. So I hope if you have ideas or want to get
involved with improvement work you will get in touch.
I hope that I have given you confidence that we are learning lessons, we are listening
and we are improving.
If you want to know more, please get in touch [comms email] and we'll be happy to
help.
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ONE update email
DOCUMENT - 14
NOTE: TONE/MESSAGING/POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
ONE UPDATE EMAIL TO POSTMASTERS AND LINK TO ONE WEBSITE (email from DS )
Audience: All postmasters registered on One, c 6000 postmasters
Email subject: Important message from KXxXx: Court findings in the second phase of Group
Litigation
You may see news today about a legal Judgment criticising Post Office in the High Court.
I want to assure you that we take the Judgment extremely seriously and lessons being learned
through the litigation are being taken on board.
There is nothing more important to our business than our relationship with you, the people
delivering our services to customers day-in, day-out and we are committed to making it easier
for you to build thriving businesses.
Please take a moment to go one the One website where you can find more information. (link)
[NOTE: THIS LINE MAY BE EXCLUDED DEPENDENT ON JUDGE’S COMMENTS - It’s
important to underline that the Court's findings do not affect the products and services we
provide for our millions of customers through our UK network of 11,500 Post Office branches]
We will continue to keep you updated on any developments and the actions we are taking
following this judgment.
You can also ask us questions xxxxxxxx/ or talk to your Area Manager.
Thank you for everything that you and your teams do every day to serve our customers and
communities up and down the country.
Debbie Smith
Chief Executive Retail
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ONE story
DOCUMENT - 15
NOTE: TONE/MESSAGING/POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
ONE STORY (POSTMASTERS)
POST OFFICE GROUP LITIGATION — SECOND JUDGMENT
The second Judgment in the Post Office Group Litigation [link?] has been handed down by the
High Court today. This Judgment focuses on our Horizon system and it’s another stage in
working towards resolving a number of individual claims by a group of mainly former
postmasters.
We understand the concerns that everyone working in our business might have about some of
the issues [and criticisms] the Judgment raises. But I want to reassure you that [WORDING
SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST JUDGMENT : we can have
confidence in the overall robustness of Horizon and that it compares well with systems used by
other retail and financial services companies each day. Both independent experts, for Post
Office and the claimants in the case, on opposite sides of the litigation, confirmed this].
[NOTE: THIS LINE MIGHT BE EXCLUDED DEPENDING ON JUDGE’S COMMENTS: It’s also
important to make clear that the products and services that we provide every day to millions of
customers are not affected by the litigation]. Horizon processes around 47 million transactions
a week, more than £60 billion worth a year. There is reconciliation which includes the systems
of major organisations we work with, such as the banks. So we can and should have
confidence in the products and services we're providing.
But of course no system can ever be said to be perfect and we're working hard to improve.
This year we’ve made some Horizon design changes - for Parcelforce and banking online
transactions for example — to make things simpler and there’s more of this to come.
The Judgement underlines [very strongly] that we must continue to do better in the ways in
which we support you to operate branches. We need to make it easier for problems to be
avoided in the first place but if there is an issue we need to help get it resolved more quickly.
You will already have seen, I hope, communications about improvements underway to do this
including:
e Our new field team structure building stronger relationships with you.
e Changes to the NBSC, now the Branch Support Centre, working more closely with the
IT helpline team, and structured so we can investigate concerns more quickly and
escalate them if needed.
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e Better training — classroom, online, in branch , including refresher training
e Our new loss prevention team improving protection of branches from external crime
and security threats and refining some of our processes to help avoid human errors
There is nothing more important to our business than our relationship with you , the people
delivering our services to customers day-in, day-out, and we are committed to making it easier
for you to build thriving businesses.
You can find today’s media statement on the Judgment here [link]. If you have any questions
or want further information you can email [xxxxxx] and we will we be happy to help.
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Branch support guide
DOCUMENT 3
From: one post office
Sent: 28 October 2019 08:56
To: Communications Team?
Subject: a message from Julie: branch support guides
28 October 2019 I Reading time 2 minutes I Please talk to your teams about this
Hello,
As you know we are all working to be better for postmasters and improve their experience with
us.
In Operations, we have been making a number of changes, including:
e Reviewing and improving the support we give branches, based on the type of calls we
get into the Branch Support Centre and the reasons for Transaction Corrections has
been a key focus for us. An early practical improvement was to introduce a dedicated
team as part of the Helpline who can support branches with balancing issues. This
team is now up and running and easy to access via the usual Branch Support contact
number.
e Most transaction discrepancy or balancing issues are caused by customers changing
their mind or by a keying mistake at the time of the transaction, but to identify what
went wrong to enable us to correct it, it is always easier for branches if the day-to-day
basics such as cash declarations, balancing and compliance are followed. The Branch
Insight Tool will flag issues or instances of failed cash declarations or balances. It’s
important to encourage branches to get the basics right and any potential issues can
be dealt with quickly, avoiding future discrepancy issues.
e We're also making changes to some Horizon screens to make it easier to avoid
mistakes. We've started with the Parcelforce process and will be moving onto banking
screens next. We will continue to improve screens based postmaster feedback.
New Branch Support guides
An important aspect we have learnt through our dedicated balancing team is that often
branches are unsure how to resolve issues when they face them.
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To support postmasters and branch teams, we have created some important guides which
cover information to help them with:
e Running an efficient Post Office branch
e Branch Balancing
e Branch Discrepancies and Transaction Corrections
These guides will give you an overview as well as some helpful reminders and useful tips.
As you support postmasters and branch teams, it’s important you make yourself familiar with
this too. You can view these guides on the attached document.
This will also be available to branch teams from Branchfocus this week, and we are sending a
printed copy to each branch so it’s easier for them to refer to.
If you have any questions or feedback on this, or any other aspect of our support for
postmasters, please let us know. Also, please encourage branches to feed back to us directly
using the One website.
Thank you for your ongoing support.
Julie
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ONE business update special (worst case scenario)
DOCUMENT - 20
NOTE — TONE/ POSITIONING/ MESSAGING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/ NOT FOUND DOCUMENT
CORE NARRATIVE FOR ONE BUSINESS UPDATE SPECIAL [ FULLER ADDITIONAL
CONTENT TO DEPEND ON TIMING OF JUDGMENT] - CENTRAL NARRATIVE BY [DEBBIE
TBC]
We've issued this One Business Update Special because we understand concerns and
questions you may have about issues raised in the latest Judgment in the Post Office Group
Litigation, which focuses on our Horizon system. I hope you have seen our communications
about this [insert how to find them] but I wanted to set out more detail.
But firstly, it is very important to understand the background to the Group Litigation. It involves
a very long-standing dispute with mainly former postmasters with claims which span a lengthy
period, some dating back around 20 years. It’s extremely complex but is, essentially, about
resolving those individual claims being made, which we very much want to do.
We already do many things differently to the ways in which we operated in the past, during the
time periods of many of the claims. We've continued to improve our culture, processes and
technology. But we know we have to do much more — and much faster.
I want to ensure you are confident about the operation of your branch and the Horizon system.
[WORDING SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST JUDGMENT: It’s
been confirmed by the latest Court judgment/ both independent experts in the litigation that the
Horizon system is, overall, robust. It compares well with systems used by other retail and
financial services companies. It is generally reliable in processing transactions - more than
£60 billion worth a year, reconciling with systems of clients such as high street banks.
Of course it is not perfect - no large-scale IT system can be. That's why its performance is
continually monitored and we are working as hard as ever to make improvements. If you have
an issue you want to get to the bottom of it quickly — or better still prevent it in the first place —
and we're acting on that.
This year we’ve made some Horizon design changes - for Parcelforce and banking online
transactions for example — to make things simpler and there’s more of this to come.
The Judgement underlines [very strongly] that we must continue to do better in the ways in
which we support you to operate branches. You will already have seen, I hope,
communications about improvements underway to do this including:
e Our new field team structure building stronger relationships with you.
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e Changes to the NBSC, now the Branch Support Centre, working more closely with the
IT helpline team, and structured so we can investigate concerns more quickly and
escalate them if needed.
e Better training — classroom, online, in branch , including refresher training
e Our new loss prevention team improving protection of branches from external crime
and security threats and refining some of our processes to help avoid human errors
In this Business Update Special you'll find further information of what we're doing to better
support you, how you can get involved in working with us on continued improvements and
what's next in the months ahead.
[additional content on key points re support/ technology/ involvement — plus potential case
studies]
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Corporate clients
Context
The Post Office has a number of very significant commercial clients who could be impacted by
an adverse judgment, in particular a number of banks who provide financial services through
the network.
Post Office’s relationship managers have continued to keep clients updated on the litigation.
There have been no significant concerns raised. Clients will continue to want to be reassured
that Post Office’s plans minimise impact on reputation and that their customers are not
affected.
Handling approach
Relationship managers have been in touch with clients to provide an update on the litigation, to
prepare the ground for the HIT Judgment. When the Judgment is made public, clients will
receive a personal call from relationship managers who will also handle any queries or
concerns (flagging/ escalating these if necessary).
Collateral
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Email to clients
DOCUMENT - 18
CLIENT- EMAIL [to be adapted by client relationship managers referencing conversations
they will have had in advance]
NOTE — TONE/ MESSAGING/ POSITIONING TO BE REVIEWED AGAINST JUDGMENT
SUBJECT: POST OFFICE GROUP LITIGATION UPDATE
As you may have seen, the second Judgment in the Post Office Group Litigation has been
handed down by the High Court today. This is another stage in working towards resolving a
number of individual claims by a group of mainly former postmasters.
This Judgment, which focuses on our Horizon computer system used across our network,
raises some issues [and criticisms] so I wanted to reassure you about improvements we're
continuing to make.
[WORDING SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST JUDGMENT:
Firstly I want to underline why we can have confidence in the overall robustness of the Horizon
system and that it compares well with systems used by other retail and financial services
companies each day. Both independent experts, for Post Office and the claimants in the case,
on opposite sides of the litigation, confirmed this.
Horizon processes around 47 million transactions a week, more than £60 billion worth a year,
with reconciliation which includes the systems of major organisations we work with.
Of course no large-scale IT system can ever be said to be perfect and we’re making continual
improvements, including design changes which simplify some transactions for our postmasters.
The Judgment underlines to us the importance of better supporting our postmasters to operate
their branches and over the past 12-18 months we have had a particular focus on making
changes at every level of the business to build a better partnership with our postmasters.
These include very improvements to recruitment, training and operational support.
I hope I have reassured you about how we are responding to the matters the litigation raises —
if you would like any more detail about the considerable improvement work underway then I will
be very happy to provide this. I also attach our response to the media about today’s Judgment
which I hope is helpful.
[As you know from our recent conversations about the litigation itself] we expect the case to
take some time to be resolved as there are many legal matters still to be determined. The
individual claims themselves span a very lengthy period, with some dating back around two.
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decades. Currently there are Court hearings scheduled through to 2020 and I will keep you
updated on relevant developments.
Again, please contact me at any time with any concerns you may have.
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Speaking brief for colleagues engaging with clients/commercial partners/colleagues
(pre-judgment)
DOCUMENT: 1
PRE-JUDGMENT SPEAKING BRIEF FOR CLIENTS/ COMMERCIAL PARTNERS/ POL
COLLEAGUES — VERBAL ONLY — NOT FOR EMAIL
POST OFFICE GROUP LITIGATION
Background
e The Group litigation involving Post Office is part of a long running dispute between Post
Office and a group of mostly former Postmasters who have made serious allegations
about technical, operational and contractual matters. It covers a long period of time,
dating back to 2000 in some cases — much of which relates to a period before we
became an independent business.
e It is complex and the case is being heard in stages, with a series of trials. The first trial
was about determining the legal construction of the contract between Post Office and
Postmasters and the second trial was about technical matters concerning Post Office’s
Horizon computer system. The second trial concluded on 2 July and the Judge has
retired to consider his judgment.
e Neither of these trials will determine liability or the individual claimants’ cases. Further
trials are scheduled into 2020.
First Trial (Common Issues Trial)
e The focus of the first phase of the legal action was to establish the correct meaning and
interpretation of the contract between the Post Office and Postmasters.
e The principal finding was that the contract between Post Office and the Postmasters is
a relational contract which includes numerous additional obligations that have been
implied into the contract.
e@ Beyond the legal finding, the judgment also made criticisms of Post Office behaviours,
and we've taken these extremely seriously.
e It’s really important to underline that the Court’s findings do not affect the products and
services we provide for our millions of customers through our UK network of 11,500
Post Office branches
e We have also made huge improvements in the culture and practices of the business in
recent years, but the Judge’s comments remind us that we must always continue to do
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better. We have taken the criticisms on board and we’re taking action throughout our
organisation
Our first priority is to improve the management of our relationships with Postmasters.
This work is already underway with every Postmaster now being supported by an Area
Manager, further improvements are being made to training, ongoing support and a full
review of Postmaster remuneration which is expected to be completed this Autumn.
Our Postmasters are the backbone of our business, their involvement is key to the
changes we’re making. Area Managers hold regular drop in and phone in sessions to
update and share information and a forum (Branch User Forum) with postmasters and
colleagues takes place monthly to review product design and changes.
We have also made changes within the Branch Support Centre to enable faster
investigations and responses and improve prevention and resolution of any problems.
Second Trial (Horizon Trial)
The second trial, about technical matters concerning Post Office’s Horizon computer
system concluded on 2 July. The judge has retired to consider his judgment and has
indicated it will be provided in November.
We don’t know what the outcome will be but it is important to underline that all the
indications are that Horizon is robust, comparing well with similar systems across retail
and financial service sectors which have to be highly reliable. This is the view of both
independent expert witnesses who have given evidence in the litigation and is further
supported by the fact that the system has been used by 500,000 postmasters and
colleagues since its introduction and around 47 million transactions every week are
successfully processed for customers.
These transactions are undertaken on behalf of other large-scale organisations,
including high street banks, Royal Mail, Government Depts and major utility companies.
The accuracy of transactions is subject to numerous checks, including reconciliation
with other client systems for some types.
In recent years we have improved and invested in technology and this remains a
priority -we’ve installed new IT equipment in every branch and transformed our back
office systems which handle £60 billion a year in financial transactions.
But no large IT system is perfect and we accept we need to do more work with
postmasters when problems do arise. Changes we’re making include measures to
further reduce human errors in branches (such as mis-keying) and to respond more
quickly and transparently to concerns raised by our postmasters. Our improved training
will also focus on Horizon and back office processes.
Speaking Note on our contingency planning (reactive only)
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e Since May we have been working with external consultants, who have relevant
experience in crisis preparedness and response work, to prepare an effective
immediate and short-term response to the Judgment from the Horizon Issues trial. .
e Through a series of workshops we identified the operational, commercial and
reputational risks which could chrystallise on an adverse judgment. A response plan
was then built around a core response playbook which includes the key messaging,
materials and briefings to be used ahead of and in response to the judgment.
e Where possible, mitigation actions are taking place ahead of Day One. The response
plan also addresses anticipated actions from Day One, e.g. surge resourcing our call
centres and the creation of new processes to monitor and manage branch closures, re-
distribute cash and stock accordingly etc.
e A Rapid Response Team (RRT) has been established to execute and manage Post
Office and stakeholder response to the judgment. It will act as the central hub of
information and is charged with coordinating business impact data and relaying this to
the organisation, by the hour, with escalation points into the GE as / if required.
e Ultimately, the response from Day one will be determined by what the Judgment
actually says, and how our stakeholders (government, corporate clients, retail partners,
customers, postmasters, employees etc.) react to it. Central to this will be ‘isolating’ the
findings just to the issues actually tried. The focus now therefore, in addition to tracking
the discharging of actions by the business, is establishing the MI required to determine
and respond at pace to the impacts / risks which do indeed chrystallise and to ‘stress
test’ both the established and new processes to understand what uplift in calls, lack of
compliance or refusals to open branches we can sustain, and over what period of time.
More Detail on the 15 Horizon Trial Issues
e The Horizon Trial consisted of 15 "Horizon Issues". These can be grouped together
under four categories:
A. Reliability of Horizon. This question also encompasses the extent to which
Horizon was the root cause of shortfalls in postmaster branches.
B. Remote access. This question seeks to determine the capability of Post Office and
/ or Fujitsu to access, edit or delete transaction data recorded in branches.
C. Reconciliation and transaction corrections. These questions seek to determine
how Horizon compares its own transaction data against other data sources.
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a Issue 5: How, if at all, does the Horizon system itself compare
transaction data recorded by Horizon against transaction data from
sources outside of Horizon?
m_ Issue 15: How did Horizon process and/or record Transaction
Corrections?
The comparison of Horizon data against third party data is called
"reconciliation". The identification of discrepancies in branch accounts
through reconciliation is a key control in the operation of Post Office's
accounting systems. Where a discrepancy is identified it can give rise
to a transaction correction being sent to a branch. The transaction
correction should neutralise a previous accounting error but can, in
theory, cause a loss in a branch.
These issues were designed to be uncontroversial factual questions
about how Horizon conducts reconciliations and processes
transaction corrections. Their aim was to lay down a foundation on
which to determine more specific issues in particular cases, at future
trials
The claimant's IT Expert did however question the quality of the
reconciliation processes. Our view is that this opinion is outside the
scope of his work given the wording of the issues to be addressed are
purely factual and do not invite comment on adequacy or
sufficiency. However, there is the possibility that the Judge will stray
into assessing the quality of the reconciliation processes and finds
vulnerabilities in them.
D. Information available to Post Office and postmasters. These questions will help
inform later trials when looking at the responsibilities and actions of Post Office and
postmasters when dealing with shortfalls.
e When the judgment is handed down we will contact you with our response.
e You might see media coverage about the trial around this time which may cause
concern, please be assured we will have plans in place to respond.
For Clients and Commercial Partners with PR Teams
e We can work with you/your PR/Media colleagues to support you with information you
might want to share within your company or when responding to media enquiries.
Appeal (reactive only)
e Post Office sought permission to appeal the Common Issues judgment at a hearing on
23 May 2019 where the Managing Judge refused permission. On 18 June we made
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an application to the Court of Appeal for permission and there is an oral hearing
concerning this on 12 November 2019.
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Speaking brief for colleagues engaging with clients/commercial partners etc (post-
judgment)
DOCUMENT - 16
NOTE: TONE/MESSAGING/POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
CLIENTS/ COMMERCIAL PARTNERS/ SUPPLIERS (ACCOUNT AND RELATIONSHIP
MANAGERS TO DELIVER)
CORE VERBAL BRIEF
KEY SPEAKING POINTS
e@ The judgment in the second trial of a Group Litigation brought against Post Office by a
number of mainly former postmasters was today handed down in the High Court. This
Judgment focuses on our Horizon system and it’s another stage in working towards
resolving a number of individual claims by a group of mainly former postmasters
e We take this judgment and the overall litigation extremely seriously. We are continuing
to make significant improvements, at pace, to both our technology and the way in which
we support our postmasters
e [WORDING SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST
JUDGMENT: We can be confident that overall Horizon is robust, comparing well with
systems used by other retail and financial services companies every day. Both
independent experts for the claimants and the Post Office, on opposite sides of the
litigation confirm this
e [NOTE — THIS LINE MIGHT BE EXCLUDED, DEPENDENT ON JUDGE’S COMMENTS -
It's also important to underline that the products and services that Post Offices provide
every day to millions of customers are not affected by the litigation]
© Clearly no system can ever be said to be perfect. That’s why Horizon’s performance is
continually monitored and we are working hard to make continual improvements
e Horizon processes around 47 million transactions a week, more than £60 billion worth a
year. There is reconciliation which includes the systems of major organisations we work
with - we have confidence in the products and services we're providing.
¢ But the judgment underlines to us very strongly the importance of the way in which we
help our postmasters operate their Post Offices to deliver those services We're
continuing to take action improve that support, alongside further investment in our
technology
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e Over the last 12 to 18 months, we have had a particular focus on making changes at
every level of the business to build a better partnership with our postmasters
e@ These include improvements to recruitment, training and operational support, as well as
changes which further reduce the risk of human errors in branches.
e We expect the Group Litigation to take some time to be resolved as there are many
legal matters still to be determined and the individual claims themselves span a very
lengthy period, with some dating back around two decades. Currently there are Court
hearings scheduled through to 2020
e We know that the Judgment’s criticisms may be unsettling for our people. We have a
comprehensive programme of communications to ensure we are speaking with
everyone in the business and providing people with every opportunity to raise questions
and concerns.
BACKGROUND [insert updated GLO fact sheet]
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Client Q&A
FROM DOCUMENT 6
QUESTIONS & ANSWERS FOR CLIENTS
Q. What is Post Office planning/ doing to reassure customers?
[We are communicating widely but proportionately. We are making the context of the
Judgment clear — it is part of complex litigation involving a small proportion of mainly former
postmasters with individual complaints on a range of matters.]
[Our statement to the media [link] makes it clear that independent experts, on both sides of the
litigation, agree that Horizon is robust, comparing well with systems used by other retail and
financial service companies every day. - WORDING SUBJECT TO FURTHER DETAILED
LEGAL REVIEW AGAINST JUDGMENT]
[We are closely monitoring customer enquiries. Our customer research has not, to date,
showed that the litigation has any significant effect on customer sentiment or behaviour
regarding our brand and we are of course keeping this under close review.]
We're continuing to prioritise investment in technology. In 18/19 we completed a roll-out of
new equipment to all our branches and transformed our back office systems which handle £60
billion a year in financial transactions. And our plans include taking action to improve
transaction processes to reduce the risk of potential errors E.g. creating a standardised
approach to reversing Parcelforce transactions which was communicated to branches in
August 2019.
Involving Postmasters is key to the changes we’re making. Area Managers hold regular drop in
and phone in sessions to update and share information and a forum (Branch User Forum) with
postmasters and colleagues takes place monthly to review product design and changes.
Q. Are any process changes being planned for the way we work together?
There’s no changes planned for the way we work with clients.
Q. Given the recent judgment why should I remain confident about the
partnership/contractual relationship we have with POL?
[It's important to underline the context of the Judgment - it is part of complex litigation to
resolve long-standing issues involving a small proportion of mainly former postmasters with
individual complaints. As confirmed by independent experts on both sides of the litigation, the
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Horizon system is robust and compares well with systems used by other retail and financial
services companies every day.
[We take criticisms made of our business extremely seriously and we’re continuing to improve
the ways in which we work with postmasters to make it easier for them to operate their
branches and build thriving businesses. We're improving training, support and
communications alongside our technology infrastructure.]
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Customers
Context
There has been very little customer interest in the litigation to date outside a small number of
social media comments, the majority in support of the claimants. The results of our insight
research undertaken for the GLO have to date evidenced no negative impact on customer
sentiment; this tracking is being continued for the Horizon Issues judgment.
With the focus of the litigation moved to technical aspects of Horizon, a negative media
narrative around system reliability could raise customer concerns about products and services
and specific reassurance messages on these are included in our core narrative.
Handling approach
Customer service teams are being briefed and will be updated when the Judgment is made
public. A process is in place to monitor the numbers of GLO-related calls and includes
relevant escalation.
Communications for scenarios such as branch closures are aligned to operational
contingencies which include include local posters, rapid Branchfinder updates and dedicated
customer phone line.
Collateral
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Customer Service team brief
DOCUMENT - 28
CUSTOMER BRIEF — REACTIVE FOR CUSTOMER SERVICES [KIM ABBOT]
NOTE: TONE/MESSAGING/POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
MESSAGES FOR CUSTOMER SERVICES TEAM
GROUP LITIGATION UPDATE — HORIZON JUDGMENT
You'll have seen the communications today about a High Court Judgment in the Post Office
Group Litigation.
This Judgment, which focuses on our Horizon system, is another stage in working towards
resolving a number of claims by mainly former postmasters. It raises a number of issues [and
criticisms] which could cause concern.
Comprehensive communications being deployed across the business, including of course to
everyone in the network. We have also issued a media statement and you can find that,
together with further information on our intranet [link].
It is possible of course that customers might ask questions about it.
If we do get queries, we can reassure our customers :
- [NOTE: MAY HAVE TO EXCLUDE THIS LINE DEPENDENT ON JUDGE’S
COMMENTS - The products and services that Post Offices provide are not affected by the
litigation]
- [WORDING SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST
JUDGMENT: We can be confident that overall Horizon is robust, comparing well with
systems used by other retail and financial services companies every day — this was
confirmed by both independent experts in the litigation]
- Horizon processes around 47 million transactions a week, more than £60 billion worth
ayear. There is reconciliation every day, every month, every year with the systems of
major organisations including high street banks, utility companies and Government
departments
- Horizon’s performance is continually monitored and we continue to work hard to make
improvements wherever we can
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Customer Q&A
FROM DOCUMENT 6
QUESTIONS AND ANSWERS FOR CUSTOMERS
Q. Is my money safe with Post Office products and services?
[Yes.
[NOTE — THIS LINE MIGHT BE EXCLUDED DEPENDENT ON JUDGE’S COMMENTS: The
products and services that we provide to customers are not affected by the Group Litigation.
]The litigation concerns a small proportion of mainly former postmasters with individual
complaints concerning a range of complex matters.
Horizon processes around 47 million transactions a week, more than £60 billion worth a year.
There is reconciliation every day, every, month, every year, with the systems of major
organisations including high street banks, utility companies and Government departments,
giving confidence in the many products and services we provide.
Q. How can! trust Horizon for financial transactions?
Horizon processes around 47 million transactions a week, more than£60 billion worth a year.
There is reconciliation every day, every, month, every year, with the systems of major
organisations including high street banks, utility companies and Government departments,
giving confidence in the many products and services we provide.
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Post Office colleagues
Context
Handling approach
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Collateral
PO fact sheet
Updated 24/10/ 2019
DOCUMENT 8
Post Office Facts and Figures
Our role and reach
e The Post Office has provided vital services at the heart of communities across the UK
for around 370 years. There are around 11,500 Post Office branches across the UK,
98% of these are run with retail partners on an agency or franchise basis. 99.7% of the
population live within 3 miles of a Post Office and nearly 93% live within 1 mile. Along
with a significant online business, we are the biggest retail network in the UK, with more
branches than all the banks and building societies combined
e Publicly owned following separation from Royal Mail in 2012, Post Office has
modernised 7,700 branches, with over 200,000 extra opening hours. Thousands of
Post Offices now open early in the morning until late in the evening, with around 4,000
branches open on Sundays, making Post Office services more accessible and
convenient
e The Post Office continues to evolve and adapt to meet the ever-changing demands of
customers. In the last few years, as part of a modernisation and investment
programme, more than 200 communities now have a brand new Post Office branch. In
2018, Post Office also acquired Payzone’s bill payment business, providing customers
with around 25,000 Payzone and Post Office locations to pay their bills
e 95% of the population say they use Post Office at least once a year and more than
850m customer transactions are undertaken every year
e In 2011/12, the Post Office was making a loss of £120 million. For 2018/19 Post Office
reported a trading profit of £60 million, its third consecutive year of trading profit.
e Asacommercial business the Post Office is driven also by its social purpose. As the
hub of many towns and villages across the UK it understands the important role the
local Post Office branch plays within communities, especially for older and more
vulnerable members of society
e For many, the Post Office remains an important source of their customers’ social
interaction as well as providing important access to their essential needs. Postmasters
up and down the country offer more than just a range of services - in many cases they
are integral to their local community, making a meaningful impact to society within their
towns and villages
Our Services
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Post Office offers over 170 different products and services, spanning financial services
including savings, loans, insurance and mortgages; as well as Government services;
broadband and home phone; foreign currency; travel insurance; LocalCollect, Drop and
Go mail services and much more
It's the UK’s largest contactless payment network with over 30,000 terminals
Millions of bill payments from council tax payments to electricity and phone are made at
Post Office branches every year. In addition, Everyday Banking services mean
customers are able to access High St bank accounts at any Post Office branch,
meaning that both personal and business banking customers can withdraw cash,
deposit cash and cheques, check their balance and get change at their nearby Post
Office. There are more than 100m banking transactions a year
Post Office has provided savings accounts to customers across the UK for over 150
years and also supplies travel currency to more people across the UK than any other
provider
Mail services offered at Post Office branches help deliver cards and presents to and
from millions of consumers each year, and support the nation’s booming online
shopping industry. Drop & Go mail services for thousands of business and e-tailers
allow them to simply drop off their parcels and we make sure they are ready and priced
for posting
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Horizon factsheet
NOTE: TO BE REVIEWED AGAINST JUDGMENT AND SUBJECT TO REVIEW BY FJ
FACT SHEET — HORIZON - FOR USE ON INTRANET AND TO BE PROVIDED TO
RELEVANT EXTERNAL/ INTERNAL STAKEHOLDERS
DOCUMENT - 25
The Horizon system
Horizon is the electronic point of sale system used across all 11,500 Post Office
branches to record and reconcile each transaction.
Horizon supports approximately 30,000 terminals in branches, with currently around
60,000 users and 47 million transactions a week.
Horizon was first introduced in 1995 on a pilot basis in a small number of Post Office
branches, before being rolled out more widely. The current version — Horizon Online —
was introduced in 2010 and has been continually improved and updated. Investing in
technology remains a priority and in 2018/19 Post Office rolled out new equipment to all
branches and transformed its back office systems.
Transactions in Post Office branches are undertaken on behalf of other large-scale
organisations including high street banks, utility companies and Government
departments. Around £60 billion worth of transactions are processed through Horizon
every year
[Potential line on audits — discussing with FJ]
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GLO factsheet
DOCUMENT - 10 updated 24/10/2019
GLO COMMUNICATIONS — HORIZON ISSUES JUDGMENT
NOTE: TO BE REVIEWED AGAINST JUDGMENT AND FOUND/NOT FOUND DOCUMENT
Audience: POL colleagues/intranet/ external as required
Group Litigation is where a group of people with similar or shared complaints join
together to make a claim in the Courts against a person or organisation
The litigation involving Post Office is part of a long running dispute between Post Office
and a group of mostly former postmasters who have made serious allegations about
technical, operational and contractual matters
Between 2012-15 Post Office performed independent investigations and engaged in
mediation for some individual complaints
In February 2016 it was reported that some former postmasters involved had obtained
funding for litigation against Post Office
In April 2016, a High Court claim was issued against Post Office and in March 2017 the
Court issued a Group Litigation Order, a procedural tool to enable the Court to manage
litigation affecting multiple parties
As is usual practice in group litigation, the Group Litigation Order was advertised and
promoted for a time specified by the Court to enable potential claimants to seek to join
the claim. This was done by the claimants’ legal representatives between 17 March
2017 and 17 November 2017. There are now 555 claimants, with individual complaints
that span the past two decades. They represent a very small proportion of people who
have worked in our network using our systems during that time
The case is very complex and the Judge ordered that it will be heard as a series of
trials.
The first trial, which finished on 5 December 2018, was about determining the legal
relationship between Post Office and agents — the Common Issues trial. The Judgment
from this trial was handed down (made public) on 15 March 2019.
The principal finding from the first trial (Common Issues) was that the contracts
between Post Office and postmasters are “relational” contracts which have implied into
them additional obligations on Post Office.
Post Office has applied for permission to appeal the Common Issues judgment. There
will be a hearing on this application on 12 November 2019.
The second trial, about technical matters concerning Post Office’s Horizon computer
system — the Horizon trial — started on 11 March 2019, and concluded on 2 July 2019.
The Judge has retired to consider his judgment.
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e A third trial, to determine in principle the losses the Postmasters can recover and how
they should be quantified, has been scheduled for March 2020 - the Further Issues
trial.
e None of these trials will decide liability or the individual claimants’ cases. Further
hearings and trials will be required for that.
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NR email to colleagues
DOCUMENT - 9
POL COLLEAGUES - EMAIL [FROM NR]
NOTE — TONE/ POSITIONING/ MESSAGING ALL SUBJECT TO DETAILED REVIEW
AGAINST JUDGMENT AND FOUND/ NOT FOUND DOCUMENT
GROUP LITIGATION UPDATE — HORIZON ISSUES JUDGMENT
As you may have seen, the second Judgment in the Post Office Group Litigation [link?] has
been handed down by the High Court today. This Judgment focuses on our Horizon system
and it’s another stage in working towards resolving a number of individual claims by a group of
mainly former postmasters.
We understand the concerns that everyone working in our business might have about some of
the issues [and criticisms] the Judgment raises. But! want to reassure you that [WORDING
SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST JUDGMENT : we can have
confidence in the overall robustness of Horizon and that it compares well with systems used by
other retail and financial services companies each day. Both independent experts, for Post
Office and the claimants in the case, on opposite sides of the litigation, confirmed this].
[NOTE: THIS LINE MIGHT BE EXCLUDED DEPENDING ON JUDGE’S COMMENTS: It’s also
important to make clear that the products and services that we provide every day to millions of
customers are not affected by the litigation]. Horizon processes around 47 million transactions
a week, more than £60 billion worth a year. There is reconciliation which includes the systems
of major organisations we work with, such as the banks. So we can and should have
confidence in the products and services we're providing.
But of course no system can ever be said to be perfect and we’re working hard to improve.
This year we’ve made some Horizon design changes - for Parcelforce and banking online
transactions for example — to make things simpler and there’s more of this to come.
The Judgement underlines [very strongly] that we must continue to do better in the ways in
which we support postmasters to operate branches. We need to make it easier for problems
to be avoided in the first place but if there is an issue we need to help get it resolved more
quickly. You will already have seen, I hope, communications about improvements underway
to do this including:
Our new field team structure building stronger relationships with our postmasters.
Changes to the NBSC, now the Branch Support Centre, working more closely with the
IT helpline team, and structured so we can investigate concerns more quickly and
escalate them if needed.
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e Better postmaster training — classroom, online, in branch , including refresher training
e Our new loss prevention team improving protection of branches from external crime
and security threats and refining some of our processes to help avoid human errors
There is nothing more important to our business than our relationship with our postmasters, the
people delivering our services to customers day-in, day-out, and we are committed to making it
easier for them to build thriving businesses.
You can find today’s media statement on the Judgment here [link]. If you have any questions
or want further information you can email [xxxxxx] and we will we be happy to help.
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Email invite to L300 call
DOCUMENT - 4
GLO COMMUNICATIONS — HORIZON ISSUES JUDGMENT
EMAIL INVITE TO L300 CALL — from Nick Read
Dear all,
I appreciate this is short notice, but please join me on an L300 call for a short but important
update on the Group Litigation.
To join the call:
1. Dial: xxxx
2. Enter participant passcode: xxxx
Or one click participant dialling:
Copy and paste into your mobile phone: xxxxxx
Best wishes,
Nick Read
CEO
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L300 call script
DOCUMENT - 5
NOTE: TONE/MESSAGING/POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
L300 CALL SCRIPT [TO BE DELIVERED BY NICK READ - call intro from Patrick/ Martine]
Thank you for joining the call this morning/afternoon.
e I’ve an important update to share with you about the Group Litigation and the Judgment
from the second trial that has been handed down today.
e Most of you are of course well aware of the background: This Judgment focuses on
our Horizon system and it’s another stage in working towards resolving a number of
individual claims by a group of mainly former postmasters
e Before I talk about our response, it’s important to remember that a lot of what you might
hear about the trial relates to the ways in which we operated in the past, dating back to
2000 in some cases —before we became an independent business.
e Over the years we’ve changed and improved our culture, processes and technology.
But we are reminded through the litigation that we must do better. We know there is still
alot more to do and we need to be much faster at doing it.
.... Add specific judgment issues here and our response.
[WORDING SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST
JUDGMENT: We should be reassured that the view of both independent expert
witnesses who gave evidence in the litigation is that all the indications are that Horizon
is robust, comparing well with similar systems across retail and financial service sectors
which have to be highly reliable]
e But of course no system can ever be said to be perfect and we’re working hard to
improve. This year we’ve made some Horizon design changes - for Parcelforce and
banking online transactions for example — to make things simpler and there’s more of
this to come
e But what the Judgment underlines [very strongly] is that we must continue to do better
in the ways in which we support postmasters to operate branches. We need to make it
easier for problems to be avoided in the first place but if there is an issue we need to
help get it resolved more quickly. You will already have seen, I hope, communications
about all the improvements underway to do this
e Our new field team structure is helping to build stronger relationships with our
postmasters. We've also made changes to the NBSC, now the Branch Support Centre,
working more closely with the IT helpline team, and structured so we can investigate
concerns more quickly and escalate them if needed. We're getting good feedback from
branches on this.
e We're improving our training —making sure it’s better aligned to the needs of
postmasters — classroom, online, in branch , including refresher training
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Our new loss prevention team is in place to help better protect branches from external
crime and security threats and they're also refining some of our processes to help avoid
human errors
We're getting the input of postmasters for improvements and this is incredibly
important. Serving customers every day, handling millions of transactions, they are
best placed to tell us what makes it easier to operate branches effectively
I hope that I have given you confidence that we are learning lessons, we are listening
and we are improving
We are communicating throughout the business today — and there is also information
on the home page of our intranet. Keeping our postmasters updated and informed
about any changes is extremely important at this time. Our Area Managers will be
talking to Postmasters and answering their questions over the coming weeks,
postmasters can also email us directly.
We will keep you updated of developments and there will also be information available
on the intranet to share with your teams which we will send out after the call.
This news may be unsettling. You will probably see criticism — some of it very strong —
in the media and beyond. Please don’t hesitate to ask questions of anyone in the
senior leadership team or you can email our Communications Team
communications.team:
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Postmaster onboarding team - email & call script in case of PM queries
DOCUMENT - 38
EMAIL & CALL SCRIPT FOR ONBOARDING TEAM (PAM HEAP/JAYNE BRADBURY)
Audience: ONBOARDING TEAM
Email to Onboarding Team
Email subject: Group Litigation Order — important information
Dear Jayne
Today there has been a high court judgement about the Post Office and attached is some
information to share with your team which is for internal use only.
It's possible that your team may get questions from postmasters and potential applicants
relating to the high court judgment and below is a script for your team to use in response to
any calls received.
Call script for Onboarding Team
Thank you for contacting us. I’m sorry but the On Boarding team is not able to respond to your
question(s).
So that the relevant Post Office Team can help you please email
PostmastersQuestions
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Branch Support Centre/IT helpline brief
DOCUMENT - 29
NOTE: TONE/MESSAGING/ POSITIONING TO BE REVIEWED AGAINST
JUDGMENT AND FOUND/NOT FOUND DOCUMENT
BRIEF FOR BRANCH SUPPORT CENTRE (BSC) AND IT HELPLINES — KIM
ABBOTTS
MESSAGES TO BRANCH SUPPORT CENTRE AND IT HELPLINE TEAMS
e You'll have seen the communications today about a High Court Judgment in the
Post Office Group Litigation.
e This Judgment, which focuses on our Horizon system, is another stage in
working to resolve a number of individual claims by mainly former postmasters.
It raises a number of issues [and criticisms] which could cause concern
e Comprehensive communications are being shared across Post Office including
of course to everyone in our branch network. We have also issued a media
statement which you can find, together with further background information on
our intranet [link]
e You might receive questions about the Judgment and the litigation from
postmasters. If you need help with these you can refer them to
PostmastersQuestions@_ who will respond back to you — they will
aim to respond within 48 hours.
e Operational questions, including postmasters contacting BSC because they have
had a loss when balancing, should be handled in the normal way but do of
course raise any concerns you have to PostmastersQuestions
e Postmasters may call about a loss in their branch that has already been made
good but they now believe that Horizon was at fault — this should be handled in
the normal way ( link to process)
e Exceptionally a Postmaster may decide to close their branch because they have
concerns about using Horizon. In these scenarios please contact the branch
Area Manager who will contact the postmaster.
e If you have any concerns or queries from postmasters that you may need help to
answer, please contact the Communications T Team who will be happy to help.
Contact PostmastersQuestions@_
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KEY MESSAGES TO POSTMASTERS
e [WORDING SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST
JUDGMENT: It is important to reassure you about the overall robustness of
Horizon and that it compares well with systems used by other retail and financial
services companies each day. Both independent experts, for Post Office and the
claimants in the case, on opposite sides of the litigation, confirmed this. ]
e Horizon processes around 47 million transactions a week, more than £60 billion
worth a year. There is reconciliation every day, every, month, every year, with
the systems of major organisations including high street banks, utility companies
and Government departments, giving confidence in the many products and
services we provide.
e Ofcourse no system can ever be said to be perfect and as you know we're
working hard on improvements. We're working with Fujitsu and postmasters on a
programme of actions
e What the Judgment underlines [most/ very strongly] is that we must continue to
do better in the ways in which we support postmasters to run branches and our
new ways of working, together with the many other actions being taken at all
levels of the business, are at the centre of this
e If you want more information about all we’re doing to support postmasters you
can find communications about it on the Postmaster One website
https://www.onepostoffice.co.uk/secure/latest-news/ , Branch Focus and One
business Update Magazine (link if this is available)
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Customer Service team brief
DOCUMENT - 28
CUSTOMER BRIEF — REACTIVE FOR CUSTOMER SERVICES [KIM ABBOT]
NOTE: TONE/MESSAGING/POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
MESSAGES FOR CUSTOMER SERVICES TEAM
GROUP LITIGATION UPDATE — HORIZON JUDGMENT
You'll have seen the communications today about a High Court Judgment in the Post Office
Group Litigation.
This Judgment, which focuses on our Horizon system, is another stage in working towards
resolving a number of claims by mainly former postmasters. It raises a number of issues [and
criticisms] which could cause concern.
Comprehensive communications being deployed across the business, including of course to
everyone in the network. We have also issued a media statement and you can find that,
together with further information on our intranet [link].
It is possible of course that customers might ask questions about it.
If we do get queries, we can reassure our customers :
- [NOTE: MAY HAVE TO EXCLUDE THIS LINE DEPENDENT ON JUDGE’S
COMMENTS - The products and services that Post Offices provide are not affected by the
litigation]
- [WORDING SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST
JUDGMENT: We can be confident that overall Horizon is robust, comparing well with
systems used by other retail and financial services companies every day — this was
confirmed by both independent experts in the litigation]
- Horizon processes around 47 million transactions a week, more than £60 billion worth
ayear. There is reconciliation every day, every month, every year with the systems of
major organisations including high street banks, utility companies and Government
departments
- Horizon’s performance is continually monitored and we continue to work hard to
make improvements wherever we can
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Email to Grapevine, King Security, Telco helpdesk
DOCUMENT - 22
EMAIL TO GRAPEVINE, KING SECURITY, TELCO HELPDESK
Audience: Grapevine, King Security, Telco Helpdesk
Email subject: Group Litigation Order — important information
Today there has been a high court judgement about the Post Office — it’s therefore
this. Please refer any questions to BSC on beenre GRO eee!
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HR Service Centre email brief
DOCUMENT - 37
Audience: HRSC
EMAIL TO HRSC (DAVID HIGHAM)
Email subject: Group Litigation Order — important information
Dear David
Today there has been a high court judgement about the Post Office and attached is
some information to share with your team which is for internal use only.
It's possible that HRSC may get questions from postmasters and colleagues relating to
the high court judgment and below is a script for your team to use in response to any
calls received.
CALL SCRIPT FOR HRSC:
Thank you for contacting us. I’m sorry but HRSC is not able to respond to your
question(s). So that the relevant Post Office Team can help you please contact:
Postmasters - Branch Support Centre on:
Post Office colleagues - Communications Team one
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Unions
Context
Trade Unions could have a critical role in shaping the way any media coverage of the Horizon
judgment is played out. In the event that this story gains significant press interest, it is likely
that journalists will quickly seek comments from CWU and NFSP representatives.
The danger in this is that the CWU, which sees an opportunity in this area to usurp the NFSP,
will quickly provide media reaction that escalates the story and increases the risk that it will
attract adverse political and consumer attention. The NFSP meanwhile has been stung by
criticism in the Common Issues Trial judgment, that asserted it was not operating
independently of the Post Office. They may feel under pressure to heavily criticise the Post
Office for fear of being attached by the CWU.
Handling approach
It will be important to contain trade union criticism of the Post Office and to ensure that, if union
reaction is critical following the judgment, it is not directed at the Horizon system, which would
only cause problems for union members. In advance of the judgment, Post Office
representatives will speak to union reps to emphasis the mutual importance of avoiding
assertions that the Horizon system is fundamentally flawed, which is not the case in practice.
Collateral
NFSP - Core verbal script
DOCUMENT - 23
NOTE: TONE/MESSAGING/ POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
NFSP — CORE VERBAL BRIEF (NICK BEAL)
KEY SPEAKING POINTS
e@ The judgment in the second trial of a Group Litigation brought against Post Office by a
number of mainly former postmasters was today handed down in the High Court.
e Asyou know, we take this judgment and the overall litigation extremely seriously and
we are continuing to make improvements at pace to the ways in which we’re working
with postmasters.
e [INSERT MAIN FINDINGS]
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We know that the Judgment’s criticisms may be unsettling for people. We have a
comprehensive programme of communications to ensure we are speaking with
everyone in the business and providing people with every opportunity to raise questions
and concerns.
[WORDING SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST
JUDGMENT : We are reassuring postmasters that we are confident that overall Horizon
is robust, comparing well with systems used by other retail and financial services
companies every day. Both independent experts for the claimants and the Post Office,
on opposite sides of the litigation confirm this.
We know of course that can be little comfort to a postmaster who experiences an issue
he/ she can’t get to the bottom of. The judgment underlines to us very strongly the
importance of the way in which we help our postmasters operate their Post Offices.
We are continuing to make changes at every level of the business including in
recruitment, training and operational support. We need to make it easier for problems
to be avoided in the first place but if there is an issue we need to help get it resolved
more quickly. Our approach is becoming more proactive:
i. Our new field team structure is building stronger relationships with
postmasters
ii. Changes to the NBSC, now the Branch Support Centre, mean working
more closely with the IT helpline team, and it’s been structured so we can
investigate concerns more quickly and escalate them if needed.
iii. Better training — classroom, online, in branch , including refresher
training
iv. Our new loss prevention team is improving protection of branches
from external crime and security threats and refining some of our processes to
help avoid human errors
We're also continuing to work on Horizon design changes to make things simpler for
postmasters. This year we've done this for Parcelforce and banking online transactions
for example and there’s more of this to come.
I will keep you updated on this of course and also on the next steps in the litigation.
We expect this to take some time to be resolved as there are many legal matters still to
be determined and the individual claims themselves span a very lengthy period, with
some dating back around two decades. Currently there are Court hearings scheduled
through to 2020
I will send you our media statement responding to the Judgment and also the
communications that have been issued to postmasters.
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CWuU/Unite core verbal script
DOCUMENT - 24
NOTE: TONE/MESSAGING/ POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
CWU — CORE VERBAL BRIEF (LEE KELLY)
KEY SPEAKING POINTS
The judgment in the second trial of a Group Litigation brought against Post Office by a
number of mainly former postmasters was today handed down in the High Court
As you know, we take this judgment and the overall litigation extremely seriously and
we are continuing to make improvements, at pace, to the way in which we support our
postmasters.
[INSERT MAIN FINDINGS]
We know that the Judgment’s criticisms may be unsettling for people. We have a
comprehensive programme of communications to ensure we are speaking with
everyone in the business and providing people with every opportunity to raise questions
and concerns
[WORDING SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST
JUDGMENT We can be clear that we are confident that overall Horizon is robust,
comparing well with systems used by other retail and financial services companies
every day. Both independent experts for the claimants and the Post Office, on
opposite sides of the litigation confirm this. And the fact remains that Horizon is
processing around 47 million transactions a week, more than £60 billion worth a year
But no large-scale IT system can ever be said to be perfect - we are working hard to
make continual improvements
We need to make it easier for problems to be avoided in the first place but if there is an
issue we need to help get it resolved more quickly. Our approach is becoming more
proactive:
i. I Our new field team structure is building stronger relationships with
postmasters
ii. I Changes to the NBSC, now the Branch Support Centre, mean working
more closely with the IT helpline team, and it’s been structured so we can
investigate concerns more quickly and escalate them if needed.
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iii. Better training — classroom, online, in branch , including refresher
training
iv. Our new loss prevention team is improving protection of branches from
external crime and security threats and refining some of our processes to help
avoid human errors
e We're also continuing to work on Horizon design changes to make things simpler for
postmasters. This year we've done this for Parcelforce and banking online transactions
for example and there’s more of this to come.
e I will keep you updated on this of course and also on the next steps in the litigation.
We expect this to take some time to be resolved as there are many legal matters still to
be determined and the individual claims themselves span a very lengthy period, with
some dating back around two decades. Currently there are Court hearings scheduled
through to 2020
e I will send you our media statement responding to the Judgment and also the
communications that have been issued to postmasters.
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Suppliers
Context
The Horizon Issues Trial poses a significant challenge to the Post Office’s relationship with
Fujitsu, which built and supports the IT system. That will require specific handling and specific
messaging which is built into core scripts and Q&A.
However the trial judgment may also impact on other suppliers who may lose confidence if the
result is a major story that suggests a fundamental basis of the network is flawed. It will
therefore be necessary to ensure that all major suppliers are contacted with the Post Office’s
top lines and given reassurance that there will be no interruption to the everyday business of
the network.
Handling approach
Fujitsu
Our core Q&A underlines the Post Office’s ongoing commitment to operate and improve the
Horizon system in partnership with Fujitsu and this will be one of the core messages in
response to the judgment.
However, at the same time our core messaging will avoid making any firm commitments
around future legal action or redress that the Post Office might seek.
Other Suppliers
For other suppliers the Post Office will proactively email information to update on the trial
proceedings provide reassurance around the Horizon system and the work of the network.
Collateral
Supplier email (excluding Fujitsu)
DOCUMENT - 19
NOTE: TONE/MESSAGING/POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
SUPPLIER EMAIL (EXCLUDING FJ) —- TO BE ADAPTED AS APPROPRIATE RE SUPPLIER
SUBJECT: POST OFFICE GROUP LITIGATION UPDATE
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As you may have seen, the second Judgment in the Post Office Group Litigation has been
handed down by the High Court today, as part of the preliminary stages of the complex, long-
running legal case to resolve a number of individual claims by mainly former postmasters.
This Judgment, which focuses on our Horizon computer system used across our network,
raises some issues [and criticisms] so I wanted to reassure you of the firm measures we [have
taken/ are taking] which address these.
[WORDING SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST JUDGMENT :
But firstly I want to underline why we can have confidence in the overall robustness of the
Horizon system and that it compares well with systems used by other retail and financial
services companies each day. Both independent experts, for Post Office and the claimants in
the case, on opposite sides of the litigation, confirmed this.]
[NOTE THIS LINE MAY BE EXCLUDED DEPENDENT ON JUDGE’S COMMENTS - It’s also
important to make clear that the products and services that we provide every day to millions of
customers are not affected by the litigation.]
The vast majority of our 11,500 Post Office branches operate without problems and Horizon
processes around 47 million transactions a week, more than £60 billion worth a year. These
are reconciled with the systems of our many clients, including high street banks, utility
companies and Government departments.
Of course no system can ever be said to be perfect and we’re making continual improvements.
Working with our Horizon supplier, Fujitsu, we have taken actions which include strengthening
the ways the system is monitored and issues identified and fixed when they do arise. We're
also implementing some design changes to further reduce the likelihood of human errors.
What the Judgment underlines to us most strongly is the importance of better supporting our
postmasters to operate their branches. Actions we're taking on this will both help prevent
problems in the first place and improve the support we provide to postmasters when they do
have issues.
Over the past 12-18 months we have had a particular focus on making changes at every level
of the business to build a better partnership with our postmasters. These include very
improvements to recruitment, training and operational support.
I hope I have reassured you about how we are responding to the matters the litigation raises —
if you would like any more detail about the considerable improvement work underway then I will
be very happy to provide this. I also attach our response to the media about today’s Judgment
which I hope is helpful.
[As you know from our recent conversations about the litigation itself] we expect the case to
take some time to be resolved as there are many legal matters still to be determined. The
individual claims themselves span a very lengthy period, with some dating back around two
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decades. Currently there are Court hearings scheduled through to 2020 and I will keep you
updated on relevant developments.
Again, please contact me at any time with any concerns you may have.
[VARIOUS SIGNATURIES AS PER PLAN]
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Commercial Partners
Context
The Post Office has a number of very significant commercial partners who could be impacted
by an adverse judgment, in particular a number of major retailers who host post offices on their
premises.
There is a low risk but high impact scenario where a seriously critical judgment on the safety of
the Horizon system could result in a fatal collapse in confidence in the Post Office’s ability to
operate its services, which would undermine the entire network.
Although this scenario is very unlikely it is important to be in a position to quickly reassure
commercial partners about the fundamental robustness of the system.
Handling approach
Immediately after the judgment the Post Office will email all key contacts in commercial
partners with an update on the trial and core messaging on the fundamental robustness of the
IT system and the Post Office’s ongoing determination to ensure processes are as failsafe as
they can be.
Collateral
Payzone employees and agents email
DOCUMENT - 21
NOTE: TONE/MESSAGING/POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
PAYZONE EMPLOYEES AND AGENTS — EMAIL (ANDREW GODDARD)
POST OFFICE GROUP LITIGATION UPDATE
As you may have seen, the second Judgment in the Post Office Group Litigation has
been handed down by the High Court today. This is another stage in working towards
resolving a number of individual claims by a group of mainly former postmasters.
This Judgment, which focuses on our Horizon computer system used across our
network, raises some issues [and criticisms]. Although Payzone is not affected, I
wanted to make sure that you were aware of the Judgment and how we are responding.
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[WORDING SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST
JUDGMENT: Firstly I want to underline why we can have confidence in the overall
robustness of the Horizon system and that it compares well with systems used by other
retail and financial services companies each day. Both independent experts, for Post
Office and the claimants in the case, on opposite sides of the litigation, confirmed this.
It's also important to make clear that the products and services that Post Offices
provide every day to millions of customers are not affected by the litigation]
Horizon processes around 47 million transactions a week, more than £60 billion worth a
year, with reconciliation which includes the systems of major organisations we work
with.
Of course no large-scale IT system can ever be said to be perfect and we’re making
continual improvements, including design changes which simplify some transactions for
our postmasters.
The Judgment underlines to us the importance of better supporting our postmasters to
operate their branches and over the past 12-18 months we have had a particular focus
on making changes at every level of the business to build a better partnership with our
postmasters. These include very improvements to recruitment, training and operational
support.
We expect the case to take some time to be resolved as there are many legal matters
still to be determined. The individual claims themselves span a very lengthy period,
with some dating back around two decades. Currently there are Court hearings
scheduled through to 2020.
I will keep you updated on relevant developments but please do contact me if you have
any questions or concerns.
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Retail partners email
DOCUMENT - 17
COMMERCIAL PARTNERS RETAIL - EMAIL
NOTE: TONE/MESSAGING/POSITIONING TO BE REVIEWED AGAINST JUDGMENT AND
FOUND/NOT FOUND DOCUMENT
SUBJECT: POST OFFICE GROUP LITIGATION UPDATE
As you may have seen, the second Judgment in the Post Office Group Litigation has been
handed down by the High Court today. This is another stage in working towards resolving a
number of individual claims by a group of mainly former postmasters.
This Judgment, which focuses on our Horizon computer system used across our network,
raises some issues [and criticisms] so I wanted to reassure you about improvements we're
continuing to make.
[WORDING SUBJECT TO FURTHER DETAILED LEGAL REVIEW AGAINST JUDGMENT:
Firstly I want to underline why we can have confidence in the overall robustness of the Horizon
system and that it compares well with systems used by other retail and financial services
companies each day. Both independent experts, for Post Office and the claimants in the case,
on opposite sides of the litigation, confirmed this.
Horizon processes around 47 million transactions a week, more than £60 billion worth a year,
with reconciliation which includes the systems of major organisations we work with.
Of course no large-scale IT system can ever be said to be perfect and we're making continual
improvements, including design changes which simplify some transactions for our postmasters.
The Judgment underlines to us the importance of better supporting our postmasters to operate
their branches and over the past 12-18 months we have had a particular focus on making
changes at every level of the business to build a better partnership with our postmasters.
These include very improvements to recruitment, training and operational support.
I hope I have reassured you about how we are responding to the matters the litigation raises —
if you would like any more detail about the considerable improvement work underway then I will
be very happy to provide this. I also attach our response to the media about today’s Judgment
which I hope is helpful.
[As you know from our recent conversations about the litigation itself] we expect the case to
take some time to be resolved as there are many legal matters still to be determined. The
individual claims themselves span a very lengthy period, with some dating back around two
decades. Currently there are Court hearings scheduled through to 2020 and I will keep you
updated on relevant developments.
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Again, please contact me at any time with any concerns you may have.
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