Commons Sense

House of Commons · Westminster Hall

Rural Postal Services: Sustainability

25 October 2023 · 12 other contributors · 4,488 words

Opened by Jamie Stone Lib Dem Caithness, Sutherland and Easter Ross

Responding minister: Kevin Hollinrake

Agriculture & Rural Affairs

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

Read the full transcript on Parliament.uk

At a glance

Jamie Stone raised concerns about rural postal services: sustainability in Westminster Hall. A government minister responded.

Key points

  • Jamie Stone is concerned about the viability of rural post offices in Caithness, Sutherland, and Easter Ross.
  • Stone cited examples of SPDO success at Balintore and challenges at Melvich and Bettyhill, with potential funding loss.
  • Stone called for the Government to reconsider removing DVLA services from rural post offices to ensure their sustainability.

Key requests to Government

Stone calls for the Government to reconsider removing DVLA services from rural post offices and to support alternative solutions that ensure their sustainability.

How the debate unfolded

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

Opened the debate

Jamie Stone Lib Dem Caithness, Sutherland and Easter Ross

Jamie Stone is concerned about the viability of rural post offices in Caithness, Sutherland, and Easter Ross. He cited a success story where Maureen Ross secured an SPDO for Balintore's community hall, but highlighted more challenging situations like those at Melvich and Bettyhill, which could lose significant funding this January. Stone pointed out that the loss of these facilities would mean posties having to use public toilets or sort mail in public car parks. He also mentioned the issue of parcels being returned far away due to a lack of local storage options, affecting elderly residents who rely on nearby services.

Other contributors (12)
  • Alan Mak Con Havant

    Asked whether keeping post boxes functional even when a post office has closed can help make postal services more sustainable.

  • Alistair Carmichael Lib Dem Orkney and Shetland

    Highlighted the financial difficulties faced by sub-postmasters due to transaction costs being higher than payments received.

  • Duncan Baker

    Suggested that banks could offer hubs through post office branches to provide additional revenue for sub-postmasters.

  • Jim Shannon DUP Strangford

    Highlighted the importance of reliable postal services for isolated communities and thanked delivery personnel.

  • Keir Mather Lab Selby

    Discussed staffing pressures leading to early closures at Eggborough post office, suggesting government support could help.

  • Marion Fellows

    Called for government investment in rural postal networks and adequate compensation for sub-postmasters. Marion Fellows questioned the accuracy of the count of post offices, noting that drop-and-go facilities were included but do not qualify as full post offices. She also raised concerns about digital exclusion impacting constituents' access to services.

  • Neil Hudson Con Epping Forest

    Stressed the importance of access to postal services for mental health and overall community well-being in rural areas.

  • Patricia Gibson

    Noted that previous Government actions have made post office sustainability more challenging in rural areas. Patricia Gibson suggested that greater UK Government support might be necessary for rural post offices, considering the lower footfall due to smaller populations in those areas.

  • Sarah Dyke Lib Dem Glastonbury and Somerton

    Discussed the impact of DVLA service withdrawals from post offices and the importance of maintaining essential services.

  • Stephanie Peacock Lab Barnsley South

    Expressed concern over regular closures of post offices in Darfield and their impact on local residents' access to services.

  • Tim Farron Lib Dem Westmorland and Lonsdale

    Proposed that banks should pay higher fees to post offices so they could sustain operations in rural areas. Tim Farron thanked the Minister for his previous interventions and asked him to pay special attention to restoring post offices in villages such as Hawkshead and Shap that have lost their services.

  • Tonia Antoniazzi Lab Gower

    Tonia Antoniazzi thanked Jamie Stone for his speech and highlighted the success of a community-driven initiative in Llanmadoc, where a post office was integrated into a local hub serving both residents and tourists. She urged recognition of such efforts and thanked volunteers dedicated to sustaining these services.

Government Response

Kevin Hollinrake

It is a pleasure to speak on the topic of rural postal services. The post office network, especially in rural areas, plays a unique role as part of the UK postal system, offering essential services that are vital for communities, particularly older people and those who struggle with travel. There are currently over 6,000 rural branches, which constitute 54% of the total post office network, and they enable access to services without needing to drive or use public transport. The Government have provided significant financial support totaling more than £2.5 billion over the last 10 years and an additional £335 million for the Post Office from 2022 to 2025. This includes a commitment to maintaining an annual £50 million subsidy until 2025 to safeguard services in uncommercial parts of the network. The Government protect the sustainability of the branch network by ensuring that across the country, 99% of the population live within 3 miles of their nearest post office. The Post Office meets its access criteria obligations nationally, with around 11,700 branches open as of 2022. The minister acknowledges challenges in maintaining the size of the network and highlights that while there is not a bottomless pit of money, they are committed to making individual branches profitable. The Post Office works with communities to maintain services through access criteria and negotiations for better remuneration from banks providing services since their branch closures. Additional funding is provided to replace the Horizon IT platform and support future revenue opportunities such as parcel hubs for DHL, DPD, Amazon and other providers. The Government remain committed to ensuring that the network is fit for the future.

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