Post Office Closures

Andy Slaughter Excerpts

Tuesday 19th October 2021 Westminster Hall

[Andy Slaughter (Hammersmith) (Lab)]

It is a pleasure to serve under your chairmanship this morning, Mr Betts. You paid tribute earlier to Sir David in another of his roles here, and it occurred to me as you were doing so that this is exactly the sort of debate he would have loved, because it is about championing essential services in our constituencies.

I congratulate the hon. Member for Motherwell and Wishaw (Marion Fellows) on securing the debate. This is an important issue—it has been for many years, and it is a shame that we have watched the decline of the post office network over that period. It should not really need saying that post offices are essential services and that they are part of our communities, but sometimes I think Post Office Ltd needs to be convinced of that. Association of Convenience Stores public surveys have shown that post offices are considered the most essential services in the community. There is also the work done by Citizens Advice. Most of all, there is the response from our constituents when offices close permanently or temporarily. That should tell us all, lest there be any doubt in the Minister’s mind, that post offices continue to be absolutely vital to sustaining communities.

It is true that there was a downsizing in the network in the 2000s and that many branches closed. I represent a constituency in a fairly small borough where there were eight proposed closures. After a very vigorous campaign, we managed to keep five of those open. Across the country, many hundreds of branches did close then. If there was any silver lining in that cloud, it was that we were told that it would make the network sustainable and able to stand on its own feet and that that would be the end of it.

There was still a sustainable network left at that point. However, a bit like with court closures, the Government seemed to get the taste from that, and we have continued to run down the network in what has really been death by a thousand cuts. We have seen a complete reduction of the Crown post office network. Whenever there is a retirement or a redevelopment, which happens quite often in my constituency, it is difficult to sustain the service and keep the office open.

I want to come on to the plague of the so-called temporary closure. I have two town centres in my constituency, in Hammersmith and Shepherds Bush. They both used to have thriving Crown offices—substantial public buildings. Hammersmith’s post office had been there for a century, since 1920, and was important not just for the functions it carried out, but as a notable public building. There were three Crown post offices in the constituency at one time and they have all gone now. We have only a third of the Crown network that we had 10 years ago.

In many cases, the product of this situation has been the rather unhappy liaison with WHSmith. It is quite easy to see why Post Office Ltd saw the attraction of WHSmith. It tends to provide space for no rental, because it is not a thriving business and wants to draw custom into its stores. In a way, it has become a marriage of two failing enterprises trying to support each other, and not a very happy one.

In Shepherds Bush, I lost the town centre Crown post office, which went into a WHSmith in the Westfield shopping centre; similarly, Hammersmith’s post office went into a WHSmith there. But at least they were continuing, and Post Office Ltd conceded that we needed town centre offices. Two years ago they told me they would find a new office for Shepherds Bush centre, but that has never materialised. That is partly, I am sure, because of covid but it shows that there is no follow-up when these things happen.

A year ago, the main office in Hammersmith closed. These are extremely busy and thriving town centres. They both had a huge throughput because of office workers during the day and they are busy shopping centres seven days a week. We know that there is a need for a continuing post office service, because the surrounding small branch offices, even when they are half a mile or a mile away, have queues outside because the main offices have closed. That is all the more extraordinary, given that most of the major banks have substantially reduced their branch networks. I used the example of Shepherds Bush, where NatWest, Barclays and Santander have all closed branches. The last remaining bank, HSBC, has reduced its hours. The post office was the only financial institution providing a great variety of services there, and it is certainly sustainable.

I am interested to hear the Minister’s views on this question. Why does he think there are so many closures? If he says, no, that the network numbers have remained stable over the past years, that would ignore the new practice of temporary closures. I have five temporary closures in my constituency and three of those offices have been closed for more than five years. They are all very important branches. The one in St Ann’s Road, on the border with Kensington, serves the Edward Woods estate. I say that as I see that the hon. Member for Kensington (Felicity Buchan) is here in her role as Parliamentary Private Secretary. The one in White City is in one of the most deprived parts of my constituency. I declare an interest in that one is just round the corner from my constituency office in the Fulham Palace Road, which we used heavily, as the Minister can imagine. Those three have been closed for more than five years. On top of that we have new closures. There is the one that I mentioned in Hammersmith, which has been closed for a year, with plans for that now abandoned and a return to the beginning with the search for a new sponsor, and there is one at Stamford Brook.

With one promised branch not opened, five branches in temporary closure and the loss of all the Crown offices we had, this is a parlous state of affairs. I ask the Minister specifically to look at the issue of temporary closures. I do not know how a closure of more than five years can be called temporary. Why is it impossible to find locations or postmasters for these places? I think the answer stares us in the face. It is that the terms and conditions that the Post Office is prepared to offer and the efforts it is prepared to put in are not sufficient to regenerate the network. We are being sold a myth that we have a stable network that is continuing at the same level as in previous years. In reality, we see more and more temporary closures that turn into permanent ones.

I hope the Minister agrees with that analysis and that he can respond to it, at least in part. This is a problem that demands his attention and that of the Government if the post office network is to survive into the future.

--- Later in debate ---

[Paul Scully]

I think the hon. Gentleman has a fair point. As I will try to develop a little, we need to do more to diversify and change the network to make sure it evolves, not only to use those mileage figures, but to make sure it meets demand and what is required by communities.

We wasted no time in March 2020 in announcing that post offices were an essential business and postmasters were key workers, so that post offices could stay open and provide the lifeline for businesses and customers everywhere that we have already heard about, and to enable loved ones to keep in touch at such a difficult time. Post offices have changed, because there is no Post Office without postmasters. While high streets grew quiet through the pandemic, postmasters across the UK went the extra mile to support their communities.

I was delighted to see Sara Barlow, the postmaster for Rainhill branch, and Luke Francis, postmaster for Bude branch, recognised in the recent Queen’s birthday honours for their services to local communities. Thanks to the tireless efforts of postmasters and their staff, those vital post office services continue to be available to communities across the country—an incredible 90% of the network remained open. I think there are many Saras and Lukes across the country who deserve our recognition.

However, the network was not immune to the challenges of the pandemic and branch numbers were clearly impacted. Some postmasters had to close their branches for health reasons, but other post offices were closed because of their location—for example, if they were in a university, community centre or library. The Post Office worked hard on a case by case basis to resolve any practical issues to keep as many post offices open as possible, but obviously it was not always possible.

I discussed the issues affecting the network on a regular basis with the Post Office’s chief executive, Nick Read, throughout the difficult time. His priority and that of the Post Office was, rightly, to protect vulnerable customers. The Post Office acted quickly to designate 1,000 branches as priority branches based on socio-economic criteria. These were branches that the Post Office considered would have the most detrimental impact on vulnerable customers should they close. That ensured that the Post Office’s efforts through the pandemic could be targeted. When any of those branches were forced to closed, the Post Office could implement a range of mitigations, including deploying mobile vans, the “post office in a box” kit and even redeploying trained staff from Post Office HQ itself. The Post Office also worked closely with Government to set up two cash delivery services, designed for self-isolating or shielding customers.

We have been monitoring the network situation very closely and working with the Post Office to understand further the impacts on postmasters and how we can support them throughout that period. Post offices were eligible to be awarded financial support through many of the Government’s measures to support business and were able to access other business support schemes, such as the VAT deferrals.

We also stepped in to put in place a temporary waiver for the requirement for the Post Office to provide those 11,500 branches. It was clear that despite postmasters and the Post Office doing everything they can to ensure services were available through the pandemic, it still was not possible to provide full network coverage. However, I am pleased to report that the waiver expired in June this year and that the post office network is above 11,500 again and with increased stability.

The pandemic helped to demonstrate what an incredible contribution post offices make to our communities. This confirmed, as we have heard, what we all know to be true. Many of us see first hand the impact that post offices have on our communities and how much constituents value their post office. That is widely backed by research, not just our own eyes and ears. The Association of Convenience Stores consistently finds that post offices are valued by customers and have a positive impact on the local area.

I fully appreciate and recognise the impact a post office closure can have on a community. I know it can be disruptive, particularly for those rural communities that do not have nearby alternatives, as we have heard. I can reassure hon. Members that we are confident that the post office network is stable and that the Government continue to be as fully committed as ever to ensure the long-term sustainability of the network.

However, it is inevitable that, with a network the size of the post office network, there will be variations, as we have heard, in the number of branches open at any one time. The post office network can and does fluctuate and change over that time, as postmasters move on, branches close, and new ones open. The Government’s access criteria ensure that however the network changes, services remain within local reach of all citizens. Churn in the network is part of the modern, dynamic, franchising business that the Post Office is.

A postmaster can resign for a number of reasons. They might be retiring, and the new business owner does not want to take on that post office. The postmaster might want to turn their shop back into a home. With partners who operate multiple post offices, businesses might make a commercial decision to resign from operating a post office. The reasons behind the post office closing might be varied, but I assure hon. Members that the Post Office’s response is tried and tested and it works. It requires operators to provide six months’ notice of a branch closure to allow it time to identify alternative ways to provide services.

We have talked about specific examples. That requirement applies to all franchising partners, whether it is a multiple retailer or an individual postmaster. Where notice is given, Post Office works hard with communities to make sure that the service is maintained. When it is not possible to open a full-time branch due to lack of retail premises in the local area, maintaining the service can include innovative solutions, such as mobile or outreach services. It is important that we make sure that those are temporary and that we look to more permanent, long-term solutions.

[Andy Slaughter]

I am listening very carefully to what the Minister says, but how does he explain the circumstances that I set out? I have just totted up in my head—I have half the number of branches open that the Post Office thinks should be open. I have six open, five temporarily closed and one that was due to open two years ago that never has. That is a system that is not working. I am sure I cannot be the only MP in this situation. How does he address the problem of temporary closures?