Post Office Network

Liz Twist Excerpts

Tuesday 10th March 2020 Westminster Hall

[Marion Fellows]

That will be one of my asks of the Minister. I have numerous asks, which might not surprise those present.

The Scottish post office network has the highest number of temporarily closed branches or temporary operators in the UK. Figures from Post Office Ltd show that of 1,016 temporarily closed branches, 134 are in Scotland, representing 13% of all temporarily closed branches; 52 of the 315 branches run by a temporary operator are in Scotland. Temporary postmasters step in when a postmaster leaves and a permanent postmaster cannot be found. This is becoming more and more common. People do not want to take on post offices in the present climate because of the difficulties involved.

The Tories’ continued refusal to support postmasters and the post office network particularly affects Scottish communities. I am sure other Members will testify to the importance of post offices in their own nations and constituencies. Some have already done so by intervention. What does the Minister propose to do about it? If she sees it as a matter for Post Office Ltd, will she ask it what it intends to do about it?

[Liz Twist (Blaydon) (Lab)]

I thank the hon. Lady for securing this debate, which resonates throughout all our nations. The post office in Blaydon’s shopping centre closed some years ago, and the Post Office has been unable to find anyone to take it on. Does she agree with me that post offices are absolutely central to the health of our high streets and that the Government must adopt a more flexible approach to supporting the opening or reopening of post offices?

[Marion Fellows]

I thank the hon. Lady for her intervention. I totally agree with her. I learnt about the circular flow of income and cash many years ago. If we cannot withdraw money from the post office, we cannot nip next door to the baker’s and buy a bun or a loaf of bread, and the baker cannot use it to pay staff. Things come to a halt. It is basic economics, or economics 101 as it is now referred to.

Communication Workers Union officials have also queried the wisdom of closing Crown post offices—those directly managed by Post Office Ltd—given that the company is profit making. The union notes that franchising causes people to leave the service because jobs advertised by firms such as WH Smith, which holds a very large number of franchises, are lower paid than those at the post office. Last year's decision to turn 74 Crown post offices into franchises in WH Smith stores is also alarming, particularly given reports that franchising is being done without consultation with the existing local post offices, meaning the competition risks destabilising the network further. I believe we heard from the hon. Member for York Central (Rachael Maskell) in a previous debate that that happened in York. The Crown post office was closed, put out to franchise, and opened next to an already franchised smaller post office branch.

There must be more consultation and strategic consideration on franchising. That is a particular concern of the all-party parliamentary group on post offices, whose chair, the hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss), is in the Chamber. Last year, the Post Office’s director of sales and trade marketing stated that it has no contingency plan in the event that WHSmith, which has experienced 14 consecutive years of sales decline, collapses. If WHSmith collapses, what will happen to the Crown post offices? We must ensure that further franchising happens only in consultation with other businesses.

The UK Government must provide more incentives for new postmasters to open post offices that are independent of major chain shops. Will the Minister look at that and instruct Post Office Ltd accordingly? It is appalling that this year the majority of sub-postmasters earned less than the minimum wage for running a post office. The pay increase announced in November will not take place until next month. It is vital that the Minister acts to ensure that profits are not increased at the cost of a cut to postmasters’ pay, forcing permanent post offices to close. Will the Minister take urgent action to review the sub-postmaster contract introduced in 2012? I think I can safely say that it is no longer fit for purpose.

The National Federation of SubPostmasters has raised sub-post office closures with the UK Government and the Government-owned Post Office Ltd. A spokesman said:

“Our records show around two-thirds of closures are due to the resignation of the sub-postmaster”.

The spokesman pointed to low pay as the prime reason, saying that

“This is a particular problem for rural areas in Scotland, as well as across the UK, where people rely on their local post office for vital postal and banking services.”

Last year, an NFSP survey warned that one in five towns could lose its post office in the next year. Surveying a thousand workers found that 22% are planning to close, pass on the business or downsize staff. Sub-postmasters have been forced to go without holidays and take on extra jobs to make ends meet.