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Post Office scandal: New concerns raised over second IT system used in branches | UK News

At least 18 people have now come forward raising concerns over a second IT system used by the Post Office, Sky News understands.

Accounting software, Capture, was installed by several post offices around the country in the mid to late 90s – before the notorious Horizon system was rolled out.

Hundreds of sub-postmasters were wrongly convicted after errors in the Horizon software caused false accounting shortfalls.

Lawyers for the victims of the Post Office scandal have told Sky News more people who used the Capture system may now come forward.

Sources have also said there are growing concerns about a continued “culture of denial” at the Post Office, and a suspicion that record-keeping was “in a mess”.

Documents show that Capture was known by the Post Office to have issues early on.

A Post Office spokesperson said they take any concerns “very seriously”.

More on Post Office Scandal

They are also “particularly concerned about allegations of prosecutions”.

Their statement continues, saying that they are looking into “whether shortfalls could have been caused by faults in this software, and the potential impacts if so”.

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Britain’s biggest miscarriages of justice

Given the passage of time, and changes to data storage they say they “do not yet have a complete picture”.

The Capture software system was not believed to have been “networked” to a larger, wider, system but was used by some postmasters across the country.

Former sub-postmasters have told Sky News they had to pay more than £1,000 for the software despite it being developed in-house by the Post Office.

Steve Marston, now 68-years-old, pleaded guilty to theft after shortfalls of over £79,000 showed up in the year between 1996 and 1997 when he started to use the Capture software.

Steve Marston
Image:
Steve Marston

For the twenty years previous, he said he had had “no issues” with accounting.

Mr Marston had received bravery awards from the Post Office in the past for confronting armed robbers on two occasions.

He describes feeling “betrayed” by the Post Office who, he says, missed an opportunity ahead of the Horizon scandal.

“I mistakenly thought Capture was a computerised system and computers don’t make mistakes.

“I didn’t know any better. I just automatically assumed it was something I was doing wrong.”

He was spared prison but spent 12 months on probation and still feels the “shame”, saying it has ruined his and his family’s life.

After his conviction, he sold his wedding rings and wife’s jewellery to “make ends meet”, and spent years living in a caravan because he lost his house.

“I just felt so guilty – I still feel shame and guilt about it.”

Read more:
Woman who died after conviction may have suffered miscarriage of justice
Former postmaster says compensation offer is ‘insulting’
Post Office chairman ousted amid row with government

Rupert Lloyd Thomas, a former IT specialist for the Post Office for 27 years, said he had repeatedly raised concerns about how the Post Office managed its software systems.

He was a local manager in Birmingham in the mid-80s, at one point, and says he often went into offices to see what was happening.

“I remember visiting an office in west London, in Hounslow,” he said, “and I opened a cupboard there and there were hundreds of floppy disks sitting in this cupboard sort of discarded and I said well, what’s all this?

“This was software crashing in the office, and yet I get back to headquarters in London. Nobody’s interested. You know, we’re getting a new system. So why would we worry about mending the old one.

“All of those things went on. I think a lot of these people that have appeared in front of the Post Office inquiry genuinely didn’t know what was happening because they didn’t bother to go find out.”

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Kevan Jones, MP, who has supported Horizon victims, says he is in touch with around ten possible victims of Capture.

“What makes me very angry,” he says, “is the fact that the Post Office, despite all the publicity around Horizon, didn’t feel necessary to come forward and admit that they had a system before Horizon where similar things occurred.

“They haven’t raised that at the public inquiry, they haven’t raised it with ministers.

“And I think certainly Nick Reed the chief executive needs to come clean now and ask why they’ve not done that.”

The Department for Business and Trade has said that it “is in active discussions with the Post Office about the Capture system issue and are taking it very seriously”.

“If there is evidence that this system led to improper accusations, the government will not hesitate in taking robust action.”

It is also understood that there is a possibility the public inquiry could be expanded to include the Capture system if more evidence emerges.

TSB to cut jobs and branches this year, parent firm reveals | Business News

The boss of TSB’s Spanish parent firm Sabadell has told reporters the UK brand’s cost-saving plans this year will result in job losses and branch closures.

Sabadell CEO Cesar Gonzalez-Bueno was questioned at a news conference, following the publication of the group’s annual results, about a £29m provision made by TSB for restructuring costs this year.

When asked if it would involve a reduction in bank staff and branches, he replied: “Yes, it will include both” but he did not put a number of either.

Follow live: Reaction to Bank of England decision

He went slightly further on the issue than TSB was explicitly prepared to do itself while outlining its own performance during 2023.

However, the £29m provision did include an estimated £24.4m for estimated employee severance costs.

TSB reported a 30% rise in pre-tax profits to £237.2m, aided by higher interest rates.

It proposed a dividend of £120m to Sabadell – up from the £50m sum in 2022.

But it added that inflationary pressures on its bottom line remained stubborn.

Annual operating expenses only fell by 3.9% compared to the previous 12-month period when the effects of a big fine, relating to its disastrous 2018 customer migration programme, was excluded.

TSB said it had set aside the £29m for a “programme of strategic cost saving initiatives which will reduce costs from 2024 onwards”.

Barclays and Lloyds bank logos
Image:
Barclays and Lloyds have announced thousands of job losses between them. Pic: PA

Rivals, including Barclays and Lloyds, have also stepped up the pace of cost-cutting in recent months despite strong profitability.

Mr Gonzalez-Bueno said details on planned cuts would be announced by TSB in due course, but the aim was to bring its so-called efficiency ratio – which measures a bank’s cost-to-income – down towards 60% from a current 73.6%.

The bank told Sky News in reaction to his remarks: “We have been clear about our focus on reducing costs, but as with any announcements about changing how we operate, we always consult with our colleagues first.”

TSB currently has 5,426 employees and 211 branches.

Robin Bulloch, TSB’s chief executive, said of its 2023 performance: “We are reporting another year of sustained profitability, demonstrating the impact of both our continued focus on customers, delivering products and services that genuinely meet their needs, and the work to make TSB a simpler, more efficient, and resilient bank.

“Throughout the cost of living challenges, our Money Confidence purpose has resonated strongly with our customers – and I’d like to thank everyone at TSB for their continued hard work to step up to support them.”

Lloyds to close 66 branches this winter – full list of those shutting | Business News

Lloyds Banking Group has announced it will close 66 branches this winter.

Between October and January, 48 Lloyds Bank branches and 18 Halifax branches will shut – the latest in a broad trend of big banks quitting the high street.

It comes just two months after the lender announced plans to shut 28 branches between August and November.

Russell Galley, director of consumer relationships at Lloyds Banking Group said: “Our customers have more choice than ever in how they bank with us.

“As our customers do more online, visits to some branches have fallen by as much as 85% over the last five years.

“Alongside our digital, online and telephone services, we’ll continue to invest in our branches, but they need to be in the right places, where they’re well-used.”

Lloyds said there will be no compulsory or voluntary redundancies, with staff able to move to other branches or another part of the business.

According to trade union, Unite, more than 5,000 bank and building society branches have closed since 2015.

But Lloyds insists it has 19.1 million online customers and 15.6 million app users, showing the increasing popularity of digital banking.

It has also promised that all of the branches set to close have at least one free ATM within half a mile, and a Post Office within 1.1 miles.

Once all the announced closures are complete, there will be 646 Lloyds Bank, 510 Halifax and 165 Bank of Scotland branches remaining.

The branches due to close between October and January are:

Lloyds, Bromyard
Lloyds, Chigwell
Lloyds, Catterick Garrison
Lloyds, Malvern Link
Lloyds, Redruth
Lloyds, Lutterworth
Lloyds, Palmers Green
Lloyds, Cheadle
Lloyds, Lytham St Annes
Lloyds, New Ollerton
Lloyds, Paternoster Sq, London
Lloyds, Earls Court Rd, London

Lloyds, Leadenhall St, London
Lloyds, Axminster
Lloyds, Barton upon Humber
Lloyds, Belper
Lloyds, Intake, Sheffield
Lloyds, The Moor, Sheffield
Lloyds, Tilehurst, Reading
Lloyds, New Romney
Lloyds, Edgbaston, Birmingham
Lloyds, Weoley Castle, Birmingham
Lloyds, Billericay
Lloyds, Immingham

Lloyds, Tonbridge
Lloyds, Edgware Rd, Paddington, London
Lloyds, Notting Hill Gate, London
Lloyds, Sandbach
Lloyds, West Wickham
Lloyds, Darlaston
Lloyds, Purley
Lloyds, Aldridge
Lloyds, Rothbury
Lloyds, Wootton Bassett
Lloyds, Guisborough
Lloyds, Cheddar

Lloyds, Cinderford
Lloyds, Cleobury Mortimer
Lloyds, Holyhead
Lloyds, Wallingford
Lloyds, Bishop’s Waltham
Lloyds, Helston
Lloyds, Looe
Lloyds, Slaithwaite
Lloyds, Welshpool
Lloyds, Pwllheli
Lloyds, Caldicot
Lloyds, Llandrindod Wells

Halifax, High Holborn, London
Halifax, Hitchin
Halifax, Ripon
Halifax, Stowmarket
Halifax, Newry
Halifax, Whitchurch
Halifax, Dorking
Halifax, Mitcham
Halifax, Retford

Halifax, Tiverton
Halifax, Tottenham Ct Rd, London
Halifax, Windsor
Halifax, Stroud
Halifax, Ruislip
Halifax, Birmingham
Halifax, Rawtenstall
Halifax, Coleraine
Halifax, Warminster