Post Office paid £600m to continue using bug-ridden Horizon IT system

Tony Blair was warned about possible problems with the original Fujitsu deal before it was signed in 1999

The Post Office has paid more than 600m of public money to continue using the bug-ridden Horizon IT system despite deciding it needed to be replaced more than a decade ago.

It has emerged that the government was warned about potential problems with the original 548m deal the Post Office struck with the Japanese company Fujitsu before it was signed in 1999.