Local Post Offices

Ben Coleman Excerpts

Thursday 30th January 2025 Commons Chamber

[Ben Coleman (Chelsea and Fulham) (Lab)]

I am very grateful to the hon. Member for Taunton and Wellington (Gideon Amos) for securing this timely debate. I was glad to have the opportunity to support him in doing so.

Hon. Members have described very powerfully the closures that are happening in their constituencies. In my constituency, the last remaining post office on the historic King’s Road is threatened. It is a long time since the King’s Road heyday of the swinging ’60s, when “Please Mr Postman” was first a hit. Unfortunately, since then the number of post office branches, on what is a very long road, has dwindled and there is now only one left. Shockingly, it is one of 108 directly managed branches across the country that the Post Office is planning to shut, 32 of which are in Greater London. The Post Office says that it is doing that to save money. I hope it is not doing it to pay for the costs of resolving the Horizon scandal. We will perhaps find out over time.

Meanwhile, we have a King’s Road post office that offers a buzzing, full service to lots of customers. There are regular queues—every time I go in there I have to wait 10 minutes to be served—and people love the staff. They tell me how worried they are at the possibility of it closing and how incredulous they are that it could even be considered. They depend on it. There simply are no other options nearby. All sorts of people go there.

As my hon. Friend the Member for Bermondsey and Old Southwark (Neil Coyle) mentioned, it is particularly older and disabled people who rely on post office services for bill payments and access to cash, and they are the most worried. Around the corner from the post office, there is a number of sheltered accommodation and retirement housing blocks. The people who live there will be disproportionately affected. On hearing what was planned, I immediately launched a petition and was not surprised to get 1,000 signatures in a very short space of time. Many other people have got in touch with me to express their disappointment, dismay and concern.

I met Post Office management in early December and left them in no doubt about the anger and shock in the community. They said that the King’s Road post office was losing money. They also said that they might consider franchising it to a retail partner or an independent postmaster, but that no decision had yet been taken. Naturally, I asked to see a full, detailed analysis of the figures. They very kindly responded that they would let me have that in the new year, which we are now in. I will be seeing them again next week and pressing them to provide that analysis.

I expect to see not just the financial reasons for any decision to close the post office on the King’s Road, but a detailed impact assessment on how the change would affect the community and what steps would be taken to mitigate it. The number of customers matters, of course, but so does the type of customer that the post office serves. I have touched on this, but we cannot just brush aside the needs of older and disabled people: people who do not feel comfortable banking online, people who prefer to use cash. We cannot let some people feel that they are seen as less important, because they are not less important. We cannot let them feel they are left behind. They must not be left behind. We need to find a solution that serves the needs of everyone. That is why it is so important to me that the Post Office consults genuinely and authentically with the local community about the change. I will be seeking clarity on that as well.

Finally, I will try in the meeting to get clarification on the Post Office’s thinking on keeping the King’s Road post office open by franchising it. I have heard the concerns that hon. Members have expressed about franchising, but if it proves to be the only option—we are a long way off that—I intend to pitch in and do all I can to make it a success for my constituents.

When we lost a major post office on North End Road in the Fulham part of my constituency, I worked very closely with the local council to support a new franchisee. I was delighted to open a new post office on North End Road last year. It is a franchise, yes, but it provides a seven-day-a-week service from 9 in the morning to 9 in the evening. It provides a full range of services—even newspaper delivery, which does not happen very much. I was there just last week. It is thriving and very popular. People feel well served. That is good news for the people of Fulham, but I cannot help wondering why the Post Office management have to go down the franchising route. Why are directly managed branches so much more expensive to run than locally franchised branches? Perhaps the Minister can shed some light on that; I will be asking the Post Office.

I am delighted by the work that the Government are doing, and their determination to revitalise our high streets. I welcome the money that has gone into the Post Office, and I welcome the proposed increase in postmasters’ pay. I look forward to seeing, later this year, the Green Paper setting out options for the future of the Post Office, but it would be helpful at this stage to have clarity about the Government’s long-term aims. Is one of them to maintain a thriving network of post offices? I do hope so. Will banking services feature in the Green Paper? Some interesting ideas have been raised here today.

I can reassure my residents in Chelsea that I will continue to work with them, with the Post Office and with the Government to fight the closure of the King’s Road branch, and to ensure that no one is left behind.

--- Later in debate ---

[Dame Harriett Baldwin]

I have given way.

The previous Government worked to enter into a new partnership with post offices and came up with the idea that people could confirm their identity in person. That is a way of using that valuable network across the land. We recognise that vulnerable people sometimes struggle to verify their identity online. We also began the initiative to help communities dealing with bank closures by setting up a network of banking hubs. I was pleased to hear the Minister confirm earlier today that he will continue backing banking hub delivery through the Post Office, but does he consider that the framework negotiations between the Post Office and the banks, which are in their final stages, are going well?

One year on from ITV’s historic programme “Mr Bates vs the Post Office”, I want to put on record my thanks to my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) for all he did to address the issues raised in that programme. Can the Minister detail the progress his Government are making on the compensation for sub-postmasters?

I want to raise the issue of Fujitsu, which designed the Horizon IT system that has destroyed so many lives and livelihoods. Under the previous Government, there were discussions with Fujitsu about providing a share of the compensation to the victims of the Horizon scandal, and Fujitsu confirmed that it will pause bids for Government contracts until the public inquiry is concluded. However, this month it was reported that the Government have awarded new contracts to Fujitsu. When Labour was in opposition, many Labour Members criticised awards made to Fujitsu, so can the Minister provide an update on the Government’s current approach?

[Ben Coleman]

The hon. Lady mentions the Horizon scandal. Is she of the opinion that the previous Government’s failure to address the Horizon scandal over such a long period of time and the billions of pounds that have had to be spent sorting out the mess since then have nothing to do with the financial problems that the Post Office now finds itself in?

[Dame Harriett Baldwin]

I do not want to politicise this too much, because I think that had gone on for a long period of time, and the inquiry took a lot of evidence last year. I think my hon. Friend the Member for Thirsk and Malton played a remarkable role in exonerating so many people, and in setting up the public inquiry.

My next question to the Minister is: could he provide an update on what he is hearing through his channels about when the inquiry may publish its report. It finished taking public evidence at the end of last year, and I anticipate it may publish that later this year, but does he have an update on that for the House? Does he have any plans to compensate sub-postmasters and sub-postmistresses who were victims of Horizon’s predecessor systems—the Capture and ECCO systems that predated Horizon—and does he have plans to quash any convictions arising from those two systems?

In the spending review, how much public money is the Minister requesting to put in a replacement for the Horizon system? Can he tell us how many post offices currently benefit from small business rate relief, and what are the Government plans about continuing that throughout this Parliament? Further to the question from the hon. Member for Wokingham (Clive Jones) about today’s worrying announcement from Ofcom that second class post may be delivered only every other weekday and not on Saturdays, what discussions is the Minister having with Ofcom to prevent this further attack on the demand for our precious postal services?

To conclude, we have heard how incredibly important this precious network of friendly people across our land is to this country, with those 11,500 post offices and the distance requirements that are in place. After hearing from so many colleagues, will the Minister reassure the House that he will sustain that network throughout the life of this Parliament. Prevention is so much better than cure. Let us all focus on supporting our much-loved post offices in any way we can to continue the wonderful work that they do up and down the country.