Rural Post Offices

Lord Marlesford Excerpts

Tuesday 9th July 2019 Lords Chamber

[Lord Henley]

My Lords, I simply do not agree. The network is broadly stable. We have seen 400 new post offices open in the last couple of years; the coverage is there. The Post Office itself is now broadly making a profit after 16 years of loss. As a result, that network can be maintained, and we will do what we can to maintain it.

[Lord Marlesford (Con)]

My Lords, will my noble friend suggest to the Post Office that it promotes the banking service more? I have been a client of this wonderful service for 10 years. It has the great advantage that you can put money in and withdraw up to £1,000 a day from any post office, however small, at any time. It is particularly important for rural areas. It is more secure than a hole in the wall, because your card is taken by somebody behind the counter and put into their machine, rather than swiped in public. The Post Office should be promoting this much more.

[Lord Henley]

My Lords, my noble friend is right to draw attention to the banking framework agreement. We are grateful for the work that the Post Office and the banks have done together. Post Office Ltd handled over 128 million banking transactions on behalf of the high street banks; that represents growth of around 12% year on year. The implications of the new framework agreement with the National Federation of SubPostmasters was announced at its conference and has led, in some cases, to a doubling or even trebling of the fees that agents can receive from the banks.