Post Office Network

Debate between Kelly Tolhurst and Paul Sweeney

Thursday 25th April 2019 Westminster Hall

[Mr Sweeney]

The additional concern is that the ATM footprint is subject to business rates, which is obviously a cost borne by the franchise holder. That is money over and above that received from Post Office Ltd, and it therefore represents a financial detriment to the franchise holder. The Minister needs to come up with a mechanism to offset that cost to the business, because otherwise it is unsustainable.

[Kelly Tolhurst]

As the hon. Gentleman knows, the Government have been working to make business rates more equitable for small businesses, and we are looking at the impact of that. Post offices will have benefited from that work. He mentions costs that he has been made aware of; if he lets me know that particular constituency issue, I am more than happy to take that forward. As I have outlined, under the Bank of Ireland agreement with the Post Office, postmasters are remunerated for, rather than being expected to pay for the privilege of, delivering that service for our communities.

On the question of cashpoints, as we are faced with bank closures, which is a problem that we all very much agree on—they have deserted our high streets—it is for the post offices to pick up the slack in some cases. That is why this Government, with the Post Office, have been negotiating strongly on the new banking framework—to get a better deal for the postmasters who are delivering services that we all rely on in our high streets and communities.

The question of accessibility in the franchise branches has been raised. Franchising means that a post office presence can be maintained in town and city centres in a way that not only makes financial sense, but ensures that services are more accessible to customers, for example through the provision of extended hours and Sunday opening. Post Office Ltd is wholeheartedly committed to ensuring that the needs of the community and its customers are met in any relocation. That is why the Post Office consultation encourages the community to share its views on all matters, including issues related to accessibility under the Disability Discrimination Act 1995.

Post Office Ltd and its franchise partners have stringent rules regarding access to post office branches, which meet all relevant legal requirements, to ensure that all customers, including those with disability or mobility issues, can access their branches. The Post Office also runs local consultations in order to engage local communities, so that they help to shape its plans. The Post Office does not seek a mandate for the franchising, but consults on practical aspects of a proposed relocation, such as service provision and accessibility.

Oral Answers to Questions

Debate between Kelly Tolhurst and Paul Sweeney

Thursday 7th February 2019 Commons Chamber

[Kelly Tolhurst]

I thank my right hon. Friend, the Chair of the Women and Equalities Committee, for highlighting the issue; she is quite right. It is true that there has been a tailored review of the effectiveness and work of the EHRC, and the Secretary of State has met the commission. We are looking at its delivery and effectiveness, but we will welcome any suggestions from my right hon. Friend and her Committee.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

3. What assessment she has made of the potential effectiveness of provisions in the draft domestic abuse Bill to support women and children who do not have secure immigration status.

HELMS and the Green Deal

Debate between Kelly Tolhurst and Paul Sweeney

Tuesday 23rd October 2018 Westminster Hall

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

It is a pleasure to serve under your chairmanship, Mr Robertson. I congratulate the hon. Member for Paisley and Renfrewshire North (Gavin Newlands) on securing the debate. I welcome the comments and interest of other hon. Members; they mentioned the particular issues for their constituents. We have a shared wish to see proper redress for consumers who have been mis-sold green deal plans. I thank the hon. Gentleman for highlighting the case of Mr and Mrs Murray. We listened to his account of the sadness and horror that they have experienced.

I want to make a particular point at this stage. As the Minister responsible for consumer protection, company law and the insolvency process, I place it on record that the Government are committed to ensuring that rogue directors, rogue traders, are investigated, in the interest of protecting consumers. I feel very strongly about that in this role and, obviously, my other roles in Government.

In total, Home Energy and Lifestyle Management Ltd, which I shall refer to as HELMS, was responsible for selling 4,581 green deal plans. Of those, 3,068 were sold to households in Scotland and 293 in the hon. Gentleman’s constituency. We understand that about 460 consumers have made complaints about the green deal plans provided to them by HELMS. That is a substantial number and it is a real concern, but let us remember that a large majority of green deal plans run smoothly, without complaint.

Most complaints focus on the fact that HELMS led consumers to understand that there would be no cost to their installation. HELMS gave consumers the impression that that was possible because of the nature of the Government’s green deal scheme. Consumers were then surprised to see green deal payments appear on their electricity bills. Many consumers were unaware that they were entering into a credit agreement, or of the opportunity that they had to cancel their agreement. That runs counter to what the green deal is about—enabling consumers to install energy efficiency measures through a loan and then repay through the resulting savings on their energy bills.

The consumer’s position was often worsened because they were persuaded by HELMS to assign elsewhere the rights to any feed-in tariff from the measures. HELMS encouraged many to transfer their feed-in tariff rights to a separate company—one related to HELMS—as a contribution to the costs of their installation. That meant that consumers could not put that potential funding stream towards meeting the costs of the green deal plans, and HELMS failed to inform the consumer of the impact.

Before saying more about the HELMS cases, I shall provide some background on the green deal. It was launched by the coalition Government in 2013. Under the green deal, consumers can borrow money to fund improvements and repay the loans over time through their electricity bills. In the case of solar PV, consumers can begin to use renewable energy generated on-site in their homes. The savings can then be used to repay the loan. A principle called the golden rule, which has been mentioned today, is in place and intended to ensure that loan repayments do not exceed expected savings.

It is true that at the time the Government and, indeed, hon. Members from across the parties had high hopes for the green deal. But it failed to take off to the levels expected. Various reasons have been offered for that. They include its complexity and the fact that it did not properly consider consumer demand to undertake energy efficiency improvements in this way. The original scheme design was not perfect, but we and others believe that the pay-as-you-save mechanism at the heart of the green deal can still play a valuable role in the future. We have published the summary of responses to our call for evidence and will consult on proposals in due course. The right consumer protection will be paramount in any reformed scheme.

We want to improve the green deal, but it is far from being the only game in town for energy efficiency. Just yesterday the House debated the Draft Electricity and Gas (Energy Company Obligation) Order 2018, under which we are looking to further improve the already successful energy company obligation scheme. Since 2013, it has led to over 2.4 million measures being installed in nearly 2 million homes.

To make things right for the consumers who have suffered from the activities of HELMS, it is important to know that there is a specific process for handling complaints under the green deal. Consumers should first approach their green deal provider. If the problem is not resolved, the consumer may then approach the green deal ombudsman or the financial ombudsman service, depending on the nature of the complaint. Ombudsman decisions are binding on the green deal provider. If the consumer is still dissatisfied, they can refer their complaint to the Secretary of State for consideration.

The liquidation of HELMS further complicated resolving consumer complaints, as it meant any ombudsman decisions against HELMS could not be implemented through the company. Therefore, my Department worked with other key parties to establish a mechanism to offer a resolution for consumers. The Green Deal Finance Company reviews those cases and, where it considers it appropriate, makes settlement offers to consumers. If they are dissatisfied with any offer received, consumers can still refer their cases to the Secretary of State under the green deal framework regulations. The Secretary of State has the power to reduce or cancel loans where he is satisfied that the consumer has suffered, or is likely to suffer, a substantive loss.

[Mr Sweeney]

Does the Minister think that, rather than the onus being on the individual to seek that assistance, the Green Deal Finance Company ought to be writing to every recipient of a loan and every customer of HELMS to make them aware of the route to getting redress, if they need it?

[Kelly Tolhurst]

The Green Deal Finance Company will make those offers. If they are not accepted by the consumer, the onus is on them to recommend the case to the Secretary of State and for him to take the decision. That is the redress process that we have put in place.