Post Offices

Lord Naseby Excerpts

Monday 17th January 2011 Lords Chamber

Asked By

[Lord Naseby]

To ask Her Majesty’s Government how they will ensure a viable local network of post offices.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Wilcox)]

My Lords, we have made it clear that we are committed to the long-term future of the Post Office. We will provide £1.34 billion of funding for the Post Office over the next four years. This will enable the modernisation of the nationwide network of around 11,500 branches and the development of new revenue streams, longer opening hours and reduced queues. We are clear that there will be no programme of post office closures under this Government.

[Lord Naseby]

I thank my noble friend for that extremely encouraging Answer. However, is she aware that in 2010 nearly 1,000 sub-post offices were up for sale because they are unviable, and that hundreds, if not thousands, of small businesses use these local post offices every day? In particular, 300,000 pensioners use the green giro. Can she make sure that this problem is addressed urgently and that within, I hope, the current Session, we will see some positive action in this area?

[Baroness Wilcox]

My Lords, I am glad you have given me an opportunity to address the point about the closure of post offices. Most, as you know, are privately owned businesses and it is inevitable and normal that there will be some changes in ownership. It is a condition of the £1.34 billion we have provided that the Post Office will continue to provide a network of at least 11,500 branches.

The noble Lord's second question was about collecting pensions from post offices. This will continue. People will be able to use the Post Office card account to withdraw money from a basic or current account free of charge and, for a small proportion of them, by cheque.

The noble Lord’s third point was about small businesses using post offices. It is clear that we should keep post offices alive and well close to the people who need to use them, particularly people such as me who live in rural areas and villages, and small businesses. They provide an enormously good service and we are very happy to support them.