Commons Sense

House of Commons · Westminster Hall

Sub-postmasters and Sub-postmistresses: Remuneration

23 May 2023 · 6 other contributors · 4,081 words

Opened by Alistair Carmichael Lib Dem Orkney and Shetland

Responding minister: Kevin Hollinrake

EmploymentAgriculture & Rural AffairsNHS

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Alistair Carmichael raised concerns about sub-postmasters and sub-postmistresses: remuneration in Westminster Hall. A government minister responded.

Key points

  • The Post Office's remuneration scheme for sub-postmasters and -mistresses is considered inadequate, causing financial strain.
  • There are concerns about the impact on rural communities where post offices offer vital services.
  • Sub-postmasters like Juliet Bellis earn significantly less than the average salary of 48,000, with earnings of only 390.90 per month for 15 hours of work during winter.

Key requests to Government

The Government should ensure fair remuneration for sub-postmasters and -mistresses that reflects their significant contributions to local communities. This includes addressing the immediate concerns raised about the DVLA contract negotiations, ensuring that post offices continue to provide essential public services without financial burden on sub-postmasters.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Alistair Carmichael Lib Dem Orkney and Shetland

The Post Office's remuneration scheme for sub-postmasters and -mistresses is inadequate, leading to a mismatch between their income and the effort required. There are concerns about the impact on rural communities where post offices provide essential services, as highlighted by Brian Smith from Shetland who struggles to make ends meet. The average salary of £48,000 contrasts sharply with the actual earnings of sub-postmasters like Juliet Bellis in Fetlar, who earns only £390.90 per month for 15 hours a week work during winter months. Additionally, there are issues related to holiday pay updates and bank charge disparities which further exacerbate the financial difficulties faced by these post office operators.

Other contributors (6)
  • Christine Jardine Lib Dem Edinburgh West

    Remote areas have been hit hard by declining number of post offices, also impacting cities where pensioners lack options for banking services.

  • Duncan Baker

    Despite Post Office commercial revenues increasing by £100 million, sub-postmasters' earnings have fallen 12% over three years. There are only 9,500 full-time post offices out of 11,700 operating around the country.

  • Jamie Stone Lib Dem Caithness, Sutherland and Easter Ross

    Mr and Mrs Mackay's general store in Durness faces viability threats from supermarket deliveries and mail order services.

  • Jim Shannon DUP Strangford

    Wages and remuneration must reflect hours committed, staff employed, contribution to the local community, and social engagement for elderly people in Strangford constituency.

  • Marion Fellows

    The Government's pledge to make local post offices the 'front office of Government' is sounding hollow and could breach the Equality Act 2010 and their own policies on access to cash and social inclusion. Digital applications should not exclude cash for people who are digitally excluded, and there are many of those in communities. Post offices need to be accessible to everyone.

  • Wendy Chamberlain Lib Dem North East Fife

    In North East Fife, post offices are closing due to lack of profitability and remote communities are being served by Post Office vans when available.

Government Response

Kevin Hollinrake

It is a pleasure to speak with you in the Chair, Mr Twigg. I congratulate the right hon. Member for Orkney and Shetland on securing this very important debate. Postmasters are the pillars of our communities and it is paramount that we secure the right future for our post office network, which brings £4.7 billion to the economy annually. The minister acknowledges the improvements made in April 2023 but notes that they have not gone as far as desired by sub-postmasters. Cash deposit limits are a critical issue being addressed with the Financial Conduct Authority and various banks. Revenue passed on to sub-postmasters, central costs reduction, DVLA negotiations, and diversification initiatives such as parcel hubs for Royal Mail and partnerships with Amazon, DPD UK, Evri, and DHL are discussed. The minister mentions significant investment in replacing the Horizon system for easier transactions and highlights Government support including £13.6 billion of business rates support, £23 billion to help with energy costs over 18 months, and a £50 million annual subsidy for uncommercial parts of the network.

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