For Americans wondering what this is all about, this 4 part series captures what happened well: https://en.wikipedia.org/wiki/Mr_Bates_vs_The_Post_Office
Its an immense problem that it got so little attention until someone made a TV dramatisation of it. There are definitely many other miscarriages of justice caused by the assumption that systems are always correct, and these are not being corrected.
The lack of consequences for those responsible also means there is no deterrent to others doing similar things.
There's no evidence this scandal arose from software allowing any delegation of decisions.
Not even that. The leadership appeared to not care or care to understand what was going on. They showed a lack of competence and tried to cover it up, badly, when they realized they might be in deep shit. The software was just one part, and really just further wrapped up in leadership failure.
The criminal prosecution will hopefully determine the extent to which the leadership did genuinely make that assumption.