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Future of the Post Office
13 November 2024
Lead MP
Gareth Thomas
Debate Type
Ministerial Statement
Tags
EconomyTaxation
Other Contributors: 33
At a Glance
Gareth Thomas raised concerns about future of the post office in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
With permission, I will make a statement on the Post Office. The Government inherited a network that is not fit for purpose due to previous disinterest and under-investment. Our priority is delivering redress to Horizon scandal victims; £438 million has been paid out to over 3,100 claimants as of October. We launched a new convictions redress scheme in July and plan an appeals system. The manifesto promised strengthening the network with stakeholder consultation. Post Office branches provide essential services including cash access and banking facilities for millions across the UK. Recognising challenges such as profitability issues and high costs, we support Nigel Railton's ambition to place postmasters at the centre of operations through a new panel and consultative council. No decisions on branch closures have been made; we expect consultation before any decisions and funding is subject to Government approval. A Green Paper will be published for public consultation.
Andrew Griffith
Con
Arundel and South Downs
Question
The Minister stated that no decisions on branch closures have been taken. When was he first informed of the Post Office's plans and did he approve them? Are these plans subject to Government funding?
Minister reply
We were aware of the challenges faced by the Post Office but no final decisions on branch closures have been made. We expect any decision to be made after full consultation with stakeholders, and funding for proposed changes is under review.
Rachel Hopkins
Lab
Luton North
Question
How will the Government ensure that postmasters receive better support and training in line with Mr Railton's ambitions?
Minister reply
We are establishing a new postmaster panel to work alongside the company on improving support and training for postmasters, ensuring they are at the heart of decision-making processes.
Andrew Griffith
Con
Arundel and South Downs
Question
I thank the Minister for his statement... After today’s impact on 100 high streets, will the Minister go back to the Chancellor and ask her to nix the NICs increase?
Minister reply
I am grateful to the shadow Minister for some of his comments. I am happy to confirm that I will keep the House updated on work around the future of the Post Office... On the Budget more generally, given the financial mess in which the Conservatives left the country and given the lack of money set aside for Horizon compensation, I think the hon. Gentleman should be a little more honest to this House about his responsibility for the scale of the mess we inherited.
Liam Byrne
Lab
Birmingham Hodge Hill and Solihull North
Question
Today is the last day of the Horizon inquiry... What steps can the Minister take to ensure this happens?
Minister reply
I welcome that the Committee’s first act is to look at redress for sub-postmasters who were victims of the Horizon scandal. I will happily appear next week to talk through where we are on compensation payments... We will work with the Post Office, and the banks have a particular responsibility, given how many bank branches have closed, to work constructively with the Post Office to improve the banking offer on the high street.
Sarah Gibson
Lib Dem
Chippenham
Question
I thank the Minister for his statement. Post Office branches are vital to local communities, especially in rural areas like my constituency. The news that around 1,000 jobs could be at risk is concerning. The Government must guarantee protection of local services and post office jobs. We urge them to take action for long-term sustainability, including mutualisation of the Post Office and strengthening its services. These branches are essential for non-digital access to crucial services for elderly and vulnerable residents.
Minister reply
No decision has been made on directly managed branches. However, these branches cost significantly more than franchisee-run ones. The Government is committed to running 11,500 branches across the country and providing funding accordingly. We agree that the Post Office can do more and are rolling out banking hubs. Mutualisation could be considered in future, but challenges remain. A Green Paper will explore these issues further.
Karl Turner
Lab
Kingston upon Hull East
Question
Given the Horizon inquiry ends today, how will sub-postmasters now be treated by the Post Office compared to before?
Minister reply
Each time I have met a victim of the Horizon scandal, I have been shocked. Mr Railton plans to set up a consultative council for future commercial development and a postmaster panel for training and support. We need to think through how to lock in this cultural change.
Bob Blackman
Con
Harrow East
Question
There is a difference between Crown post offices and sub-post offices, with the former being more expensive to run but offering a bigger range of services. Given that several Crown post offices in my constituency and elsewhere are under threat, will no decision be taken before the Green Paper is issued?
Minister reply
No decisions have been made on closing directly managed branches yet. The Post Office must talk seriously with sub-postmasters, trade unions, and other stakeholders about future costs. We remain committed to providing 11,500 branches for nationwide access.
Clive Betts
Lab
Sheffield South East
Question
I have discussed mutualisation with sub-postmasters since before the Lib Dems took up this issue. My previous minister considered it positively. How will the Minister engage with sub-postmasters to look at how mutualisation might work going forward?
Minister reply
We need a sustained change in Post Office culture first, and significant steps have been made towards that through new bodies like the postmaster panel and consultative council. Mutualisation must come from grassroots engagement rather than imposed solutions.
Martin Vickers
Con
Brigg and Immingham
Question
A Post Office in Grimsby is on today’s list of potential closures, but could easily operate from smaller premises or shared commercial spaces. Will the Minister ensure that cost-cutting measures will be explored before any closures?
Minister reply
We have made it clear to the Post Office that it must talk to sub-postmasters, stakeholders and trade unions about costs associated with directly managed branches. We remain committed to ensuring easy access to a post office branch for every community.
Clive Efford
Lab
Eltham
Question
I welcome the Minister’s statement but am disappointed by comments on the compensation process for victims of the Horizon scandal. What can be done to improve this process?
Minister reply
We are looking at further improvements for the compensation process and have moved staff to help speed up redress in complex cases within the GLO scheme, aiming for significant redress delivered by March.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Question
The right hon. Gentleman is concerned about the pay disparity between sub-postmasters and Crown post office staff, as well as the decision-making process regarding potential closures of Crown post offices in Kirkwall and other communities. He also questions whether 'other stakeholders' include community members and customers seeking full service provision.
Minister reply
The Minister re-emphasises the commitment to maintaining 11,500 branches across the UK and highlights that communities will be involved in any decisions regarding individual post offices.
Rupa Huq
Lab
Ealing Central and Acton
Question
Acton lost its well-used post office in 2018, but now has a Post Office-run banking hub. The MP seeks ways to merge post office services with this hub, suggesting it could offer postal services again.
Minister reply
The Minister agrees to investigate the possibility of merging services and expresses willingness to revisit Acton's banking hub.
Jeremy Corbyn
Ind
Islington North
Question
Welcoming the minister’s statement, he questions whether there will be no further closures of Crown post offices, urging for a commitment to reopening or extending branches and ensuring that they offer various services vital to community life.
Minister reply
The Minister stresses the importance of post office branches in communities but acknowledges ongoing work on banking hubs and consultative processes involving sub-postmasters.
Chi Onwurah
Lab
Newcastle upon Tyne Central and West
Question
Concerned about the Post Office Horizon scandal, she asks what steps have been taken to ensure accountability for IT failures and learning from them to support post offices with necessary technology in the future.
Minister reply
The Minister acknowledges the need for better technology support and expects the Horizon inquiry's recommendations on accountability to inform decisions.
Tim Farron
Lib Dem
Westmorland and Lonsdale
Question
Kendal Crown post office faces potential closure despite previous threats and community opposition. The MP asks for guarantees that it will remain open, citing the loss of bank branches as a concern.
Minister reply
The Minister acknowledges the importance of banking services in communities but reiterates no decisions have been made regarding Kendal or other individual directly managed branches.
Jon Trickett
Lab
Normanton and Hemsworth
Question
Critiquing past elite contempt from the Post Office towards workers, he demands assurances that further closures in his mining villages with poor infrastructure will not occur.
Minister reply
The Minister commits to ensuring every community has a post office branch, providing £50 million subsidy and urging banks to work more closely with the Post Office.
Gavin Williamson
Con
Stone, Great Wyrley and Penkridge
Question
Concerned about rural branch closures in his constituency, he seeks assurances that all necessary measures will be taken to preserve these branches.
Minister reply
The Minister acknowledges the Post Office's role in supporting rural sub-postmasters and welcomes plans for a consultative council and postmaster panel.
Amanda Martin
Lab
Portsmouth North
Question
Welcomes the Minister’s statement, actions on Horizon scandal, and commitment to Post Office services. Concerned about proposed closure of Cosham post office branch in her constituency. Requests assurance that voices of sub-postmasters from Portsmouth will be heard during discussions about retaining this vital branch.
Minister reply
Grateful for question. Publishes Green Paper next year welcoming voices of sub-postmasters; no specific decisions on individual directly managed branches have been made yet.
Chris Law
SNP
Dundee Central
Question
Asks about future guarantees and consultations for post office closures in Scotland, given the importance of access to essential government services like pensions. Questions role of UK Government in recent closures.
Minister reply
No decisions on individual branch closures have been made; Post Office will consult sub-postmasters, trade unions, and other stakeholders.
Josh Dean
Lab
Hertford and Stortford
Question
Praises Minister for statement and invites him to visit Ware banking hub once it finds permanent site.
Minister reply
Commits to returning to visit the constituency when the banking hub has a permanent location.
Lisa Smart
Lib Dem
Hazel Grove
Question
Concerned about recent post office closures in Hazel Grove due to commercial reasons. Asks for strengthening role and opening new funding opportunities.
Minister reply
Acknowledges the situation described; Post Office management is focusing on improving sub-postmaster pay.
Peter Swallow
Lab
Bracknell
Question
Concerns about lack of banking services in Crowthorne high street and asks for roll-out of more banking hubs.
Minister reply
Agrees with the need to roll out more banking hubs; highlights urgency following 9,500 bank branch closures under previous government.
Kieran Mullan
Con
Bexhill and Battle
Question
Concerned about potential closure of post office in Bexhill and asks for consultations to include local communities. Asks about Labour's commitment to strengthen the network.
Minister reply
Confirms no decision has been made on individual directly managed branches; consults will involve sub-postmasters, trade unions, and communities.
Luke Charters
Lab
York Outer
Question
Concerned about delayed compensation for former Horizon sub-postmasters. Asks when the appeal system for Horizon shortfall scheme will be operational.
Minister reply
Appeals process is expected to be up and running early next year; Government is focused on addressing challenges in redress.
Sarah Dyke
Lib Dem
Glastonbury and Somerton
Question
Asks about securing long-term future of post office services, especially those in rural areas like her constituency.
Minister reply
Seeks to improve banking offer through Post Office; increase sub-postmaster pay; manage Post Office costs better.
Tristan Osborne
Lab
Chatham and Aylesford
Question
Proposes aggressive pursuit of banking hubs and shared provision with local councils, like libraries.
Minister reply
Open to ideas that can help speed up the roll-out of banking hubs; recognises their importance for communities.
Steffan Aquarone
Lib Dem
North Norfolk
Question
Announces reopening of Horning post office and asks about personal vision for future Post Office services, especially in rural areas.
Minister reply
Welcomes news; Green Paper will explore ways to improve services through banking hubs.
Lee Barron
Lab
Corby and East Northamptonshire
Question
Welcomes assurances that the Post Office will not turn around and take numbers away from constituencies. Asks for assurance that the Post Office must take into account the Government’s priorities for high streets, especially in light of planned branch closures.
Minister reply
Acknowledges commitment to ensuring good access to post office branches for all communities and expresses willingness to meet Lee Barron to discuss specific concerns.
Helen Morgan
Lib Dem
North Shropshire
Question
Highlights the digital exclusion faced by Oswestry, which is a significant town serving rural areas in Shropshire and mid-Wales. Requests assurance that Crown post office services will remain in Oswestry to cater for vital needs.
Minister reply
Reiterates commitment to ensuring post office services are accessible across all communities; emphasises the need for proper consultation with stakeholders including sub-postmasters and trade unions.
Torcuil Crichton
Lab
Na h-Eileanan an Iar
Question
Welcomes comments on Horizon scandal, but expresses concern about potential closure of Stornoway post office. Urges Minister to ensure islanders have full physical access to Crown post office services.
Minister reply
Reiterates commitment to ensuring every community has access to post office services; offers willingness to meet Torcuil Crichton to discuss concerns.
Jim Shannon
DUP
Strangford
Question
Welcomes the Minister’s commitment to Post Office compensation and highlights concern over potential closures in Newtownards and Bangor, Northern Ireland. Requests steps to prevent leaving tens of thousands without full service.
Minister reply
Acknowledges concerns about constituents; reiterates commitment to ensuring post office services for all communities while considering costs to achieve sustainable footing.
Mark Sewards
Lab
Leeds South West and Morley
Question
Expresses alarm over potential closure of Queen Street post office in Morley, a town centre that has lost bank branches and relies on the post office for services. Requests assurance about no decisions having been made and willingness to meet.
Minister reply
Agrees to meet Mark Sewards; reiterates commitment to good access to post office services while considering costs for sustainability.
Shadow Comment
Andrew Griffith
Shadow Comment
I welcome the efforts to increase redress payments but regret the cost-cutting measures announced by the Post Office chairman, which are likely due to increased business rates and national insurance contributions. Can the Minister guarantee that Budget changes did not impact this decision? When was he informed of these plans and did he approve them? Will funding be secured immediately or will there be a six-month wait? Were any impact assessments conducted and if so, why won't they be published? The Post Office provides essential services including banking hubs; will the Government ensure no withdrawal of such services due to this decision?
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