Community and Sub-Post Offices

Debate between Ruth Cadbury and Gavin Newlands

Wednesday 27th March 2019 Commons Chamber

[Gavin Newlands]

I agree 100% with my hon. Friend that the entire exercise is, quite frankly, a piece of nonsense; she makes her point well.

The fees that banks pay to Post Office Ltd, which in turn compensates its sub-postmasters, to carry out this work have been ridiculously low––so much so that the majority of these transactions are actually carried out at a loss to the sub-post office. For example, for every £1,000 of cash accepted over the counter, Post Office Ltd is paid 24p. There is no differential between the commissions paid for coins and for notes, so in effect if the post office had to count 100,000 pennies, it would get to keep 24 of them as payment. To be clear, Post Office Ltd also pays a transaction fee, but the combined fees are insufficient to cover those costs. It is clear that the current deal is deeply unfair and unsustainable.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

I congratulate the hon. Gentleman on bringing this debate to the House. Of course, there are issues in rural areas in Scotland, but we also have an issue in Brentford town centre—a small town centre in the suburbs of London. We have lost our sub-post office, which closed in the new year because the sub-postmaster did not want to keep it on. No one else could be found among any of the other businesses to run the sub-post office because, as he has just outlined, it is just not viable. Does he agree that the Government need to review their tapering down of the network subsidy payment, which was supposed to be what made sub-post offices viable? In Brentford’s case, it is clearly no longer viable.

[Gavin Newlands]

I totally agree. It is simply not viable to be a sub-postmaster at the moment.