Post Offices

Baroness Knight of Collingtree Excerpts

Monday 17th January 2011 Lords Chamber

[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.

[Baroness Knight of Collingtree]

My Lords, does the Minister agree that “viable” can be interpreted as a public service that is available to members of the public who use it? Is she aware of the great difficulty that many people in rural areas have experienced because of the closure of local post offices, particularly young mothers with children who have to be pushed in a pram, and pensioners? Will she concentrate on the difficulties that these areas are experiencing?

[Baroness Wilcox]

That is always a worry and a difficulty, particularly, as my noble friend has pointed out, for young families. The Post Office Ltd network works hard to try to secure new ownership for a post office when it is going to close. As noble Lords will know, the access criteria specify that 99 per cent of the population should be within 3 miles of a post office, and in inner cities they should be within 1 mile of one. If the post office closes in an area like that, it causes hardship. Post Office Ltd is very keen to get the churn better handled. It is natural for someone who wants to open a post office to be fully enthusiastic. I have a goddaughter who has just opened one. She has a very young family herself, and is struggling and finding it difficult to keep the business running. She thought it would be much easier than this. When things are difficult like that, we need to give all the help that we can.