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Post Office Closures
19 October 2021
Lead MP
Marion Fellows
Motherwell and Wishaw
SNP
Responding Minister
Paul Scully
Tags
EconomyTaxationEmploymentForeign AffairsBusiness & Trade
Word Count: 13597
Other Contributors: 14
At a Glance
Marion Fellows raised concerns about post office closures in Westminster Hall. A government minister responded.
Key Requests to Government:
The Government should guarantee a minimum income for every sub-postmaster to make running a post office an attractive opportunity. They must also confirm their support for a private Member's Bill that mandates banks to provide banking services through local post offices and ensures they pay for the outreach and banking services provided by the network.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The closure of post offices causes inconvenience and hardship for communities. In Motherwell and Wishaw, there have been both temporary and permanent closures. Many sub-postmasters are earning less than the minimum wage due to poor remuneration, leading them to retire or postpone retirement. There has also been an over-reliance on franchise postmasters, such as SPAR's decision to close 31 counters in Scotland. Since 2015, over 4,300 bank branches and building societies have closed, with post office branches now representing 60% of all the UK's branch-based cash access points.
Andrew Slaughter
Lab
Hammersmith and Chiswick
Mr Slaughter expressed concern about the decline of the post office network, highlighting that despite initial promises of sustainability following closures in the early 2000s, further reductions have occurred through temporary closures. He mentioned specific cases such as Crown post offices being replaced by WHSmith partnerships and cited examples from his constituency where branch closures led to long queues at remaining branches due to increased demand. He also raised issues with current practices allowing 'temporary' closures lasting over five years. The MP expressed concern over a system that is not functioning properly due to an insufficient number of open Post Office branches in his area. He noted having six open branches, five temporarily closed ones, and one scheduled to open two years ago but still unopened.
Chi Onwurah
Lab
Newcastle upon Tyne Central and West
Echoed the tribute to Sir David Amess and praised cross-party work on post offices. Stressed that for 361 years, post offices have been integral to local economies. Cited a survey showing 97% of post offices supported communities during lockdowns. Highlighted concerns about closures in rural and vulnerable areas with data from the north-east region. Noted struggles sub-postmasters face due to financial viability issues leading to higher resignation rates. Raised questions on maintaining pre-pandemic branch numbers, assessing pandemic impacts, and ensuring future support for the network.
Chris Loder
Con
West Dorset
Supports the idea of including banking in post office services, noting that three-quarters of marketplace sellers say it would be difficult to send items if their local post office were to close. He also acknowledges the importance of community hubs like those being developed in Cambuslang.
David Linden
SNP
Glasgow East
Mr Linden highlighted the closures of post offices in Glasgow East, noting four permanent and temporary closures since he became an MP. He expressed concern about the impact on local communities, especially regarding pension access and cash availability for vulnerable people. He criticised the Post Office's business model, which often leads to branch closures due to financial unviability. Linden also called for continued support from banks and clarification on how the £227 million in funding would be allocated and used.
Gregory Campbell
DUP
East Londonderry
Mr Gregory Campbell intervened to suggest that post offices should innovate in financial services over the next decade. He urged for future-oriented thinking and innovation within post offices, drawing a comparison with evolving credit unions.
Jamie Stone
Lib Dem
Caithness, Sutherland and Easter Ross
Mr Jamie Stone expressed concern over the impact of post office closures in remote parts of Scotland, highlighting a specific example from Balintore where local efforts have secured a new arrangement. He noted that not all communities have such resources to replicate this model, making it challenging for some areas. Emphasising the social fabric and privacy concerns within post offices, Mr Stone also pointed out the significance of face-to-face services especially after the pandemic. The MP questioned the Minister's statement about 99% of the population living within three miles of their nearest branch, stating it does not apply to his constituency.
Jim Shannon
DUP
Strangford
Mr Shannon expressed the importance of post offices to rural communities, highlighting their role in social interaction and accessibility. He mentioned successful collaborations between post offices and major supermarkets like Spar Henderson group in Northern Ireland, which have helped defer potential closures but do not provide all services that dedicated post offices offer. Mr Shannon also emphasized the vital support post office staff provide to vulnerable individuals and businesses, especially those who prefer or are forced to operate offline due to security concerns.
Carmarthen East and Dinefwr
Asked if the Post Office could provide a community banking service to fill the void left by commercial banks, suggesting this would help safeguard the Post Office and improve communities' lives. Mr Edwards noted that placing a sub-post office within a community centre has been innovative in his constituency, stressing the need for sustainable remuneration to ensure such services remain viable.
Kirsten Oswald
SNP
West Tyrone
Emphasised the need to heed community organisations' requests for post office services in their local areas, highlighting the importance of such services for vulnerable individuals. Ms Oswald agreed with Mr Moore's points, citing an example from her own constituency where staff went above and beyond during the pandemic to support local people. The MP emphasised the importance of post offices in her constituency, noting difficulties faced by elderly and vulnerable people due to closures. She highlighted the 'stop-start' nature of services in Clarkston and praised the human contact and support provided by staff at Barrhead's post office. The MP also mentioned the role of Tariq Chishti during lockdown and his award for going above and beyond.
Margaret Ferrier
Ind
Rennyhill
Highlighted a multi-purpose post office bank hub initiative in her constituency that has increased access to banking services, proposing similar rollouts nationwide.
Rachael Maskell
Lab Co-op
York Central
Discussed recent post office closures in York, advocating for community consultations before any closure and the repurposing of estates as community services.
Robbie Moore
Con
Keighley and Ilkley
Mr Moore highlighted the proposed closure of the Haworth Main Street post office in his constituency, emphasizing its importance to elderly residents and businesses. He criticised the accessibility issues posed by relocating services to a Co-op at the bottom of the village and noted that over 7,000 constituents have signed a petition against the closure.
Mr Ronnie Cowan pointed out the uncertainty and precarious environment facing post offices due to closures, making it difficult to secure investment. He urged the Government either to admit there is no future for post offices or to legislate to protect their long-term viability.
Wendy Chamberlain
Lib Dem
North East Fife
Suggested that mobile services are insufficient for communities facing post office closures in her constituency, urging for longer-term solutions from the UK Government and the Post Office.
Government Response
Paul Scully
Government Response
It is a pleasure to serve under the chairmanship of Mr Clive Betts. The hon. Member for Motherwell and Wishaw has secured today's debate on Post Office closures. The post office network, with over 11,500 branches, remains stable, providing essential services during the pandemic. During the pandemic, some post offices had to close due to health reasons or location issues, but efforts were made to keep as many open as possible and provide mitigations for closure. A temporary waiver was in place to ensure full network coverage could be maintained despite challenges. The Government supports financial inclusion through Post Office services, ensuring basic cash and banking facilities remain accessible throughout the network. Innovation is key with new partnerships being forged and existing relationships strengthened. The Minister committed to continuing efforts on addressing the Horizon scandal and ensuring justice for those affected. He also addressed specific concerns raised about post office closures in Scotland and Haworth, promising to relay these messages to the Post Office.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.