Child Maintenance Services

Debate between Marion Fellows and Margaret Ferrier

Tuesday 17th January 2023 Westminster Hall

[Marion Fellows]

I have papers in front of me from a case in my constituency. The parents have separated, and the father was going through court to try to get residency for his daughter. His daughter has now left school, and his ex-partner is still claiming child benefit, which is an abuse of the social security system. His daughter has now left home, is impoverished and has no contact with her father. He sees this as a failure of the state to help bring up his daughter properly. He has been paying, but he has now tried to walk away from the court case because he cannot afford to continue. It also would have meant that his ex-partner ended up in prison. It is a terrible case. I did say I would not get involved and get too emotional, but it is difficult to listen to what happens to children because of failures in the CMS.

A Joseph Rowntree Foundation report from 2020 found that nearly half of children in lone-parent families are in poverty. This has to stop. Satwat Rehman, the chief executive of One Parent Families Scotland, said:

“parents are facing huge delays in hearing back, poor customer service, and ultimately a failure to collect payments”

at

“a time when the cost of living is rising to impossible levels”.

Victoria Benson, chief executive of Gingerbread, said:

“Child maintenance is not a ‘nice to have’ luxury, in many cases it makes the difference between a family keeping their heads above water or plunging into poverty.”

Mumsnet founder Justine Roberts said:

“Providing for your children is a fundamental responsibility, and it’s genuinely surprising that the Child Maintenance Service allows so many adults to evade it. Children from these families deserve better than to be treated as collateral damage when relationships break down.”

The Scottish Government do all they can to mitigate child poverty. The child payment fund in Scotland, which has been quadrupled recently, is a good start, but it is still not enough. The real issue is that the CMS isnae working. That is it in a nutshell. Parents spend hours on the phone—either the paying parent or the parent with care—and they do not get the same person on every call. They get conflicting advice, they end up in tears and they end up wasting their entire weekend with worry, as Members have said. It is not good enough.

[Margaret Ferrier]

Looking back to the contribution from one of my constituents at the APPG this morning, the problem is not just the communication between the CMS and the constituent, but the fact that constituents are told they will get a call back. On several occasions that has not happened. Does the hon. Member agree that that adds to the poor mental wellbeing of those parents?

Post Office Closures

Debate between Marion Fellows and Margaret Ferrier

Tuesday 19th October 2021 Westminster Hall

[Marion Fellows]

Absolutely. I know how hard the hon. Lady has worked for her constituents in York and with regard to the Crown post office closure there.

Post offices support local businesses. Half of those who started selling online during the pandemic have used the post office to post items, while three in four marketplace sellers say that if their local post office were to close, it would become difficult to send items to their customers. In my constituency of Motherwell and Wishaw, communities have experienced both temporary and permanent closures, notably the permanent closure of the Brandon Street Crown branch in Motherwell town centre. Sadly, many Crown branches have been closed—decisions typically opposed by the communities affected. Unlike smaller branches, Crown post offices offered a wide range of services, which made them service hubs at the heart of communities.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

While post office closures present a real issue for local communities, some initiatives have the potential to provide great support to those communities. Cambuslang in my constituency is home to a post office bank hub, which has massively increased access to banking services, and I was delighted that the Economic Secretary to the Treasury visited the constituency last week to hear all about that fantastic initiative. Does the hon. Member agree that the focus should be on rolling out these multi-purpose initiatives?

[Marion Fellows]

I thank the hon. Member for her intervention. I, too, visited Cambuslang a number of months ago, and it is a great initiative. The local community council fought hard for that pilot, and it was doing great work. I think there is a way forward through that kind of initiative, which again I will come on to.

There are multiple reasons for branch closures, but at the root of many of them is the issue of sub-postmaster remuneration. Post Office Ltd must agree a fair deal with sub-postmasters. The Horizon scandal has undoubtedly damaged the relationship between Post Office Ltd and sub-postmasters and staff, and the ongoing work to repair that relationship must continue. Now more than ever, it is essential that sub-postmasters are properly remunerated. Many of the sub-postmasters I have spoken to have said that they have handed in their keys because they simply cannot afford to live on the income they make from running a post office. Some sub-postmasters have even reported that they have been earning less than the minimum wage.

That is simply not good enough. Citizens Advice has found that the number of temporarily closed branches has doubled since 2013, and that two in three remain closed for over a year and two in five for over two years. Poor remuneration is not just forcing sub-postmasters to retire or postpone retirement; it is preventing a new generation from taking up the role, as they see no value in it. The UK Government must provide the funding, and Post Office Ltd must agree to guarantee a minimum income for every sub-postmaster so that their hard work pays off and running a post office can be an attractive opportunity.

Another reason for concern is the over-reliance on franchise postmasters—not independent sub-postmasters, I hasten to add, but large retail chains. Only this year, SPAR announced the closure of 31 of its 48 Scottish counters. If a larger retail partner were to go into administration or decide that having a post office counter was not worth their while, that could leave hundreds of communities without a local branch. I fear that Post Office Ltd is fighting a losing battle with large franchisees and putting all its eggs in one basket to meet the national access criteria. CJ Lang has said that it made more money from putting a Costa machine into a branch than it did from running a post office. That is an outstanding critique of what is wrong with the post office network at the moment. Can the Minister outline what the Government’s contingency plans are in the event that a large partner decides to close its branches, or close altogether? It is not just up to Post Office Ltd to sort this issue out.

As banks leave high streets and town centres, post offices are filling the gap. Over 4,300 bank branches and building societies have closed since 2015—over a third of the entire network. In fact, post office branches now represent 60% of all the UK’s branch-based cash access points. Banking and access to cash must therefore be part of the long-term vision for the network. In September, Post Office Ltd announced that it had taken in £2.9 billion of deposits, with that figure expected to rise to over £3 billion this month. Many local businesses are using post office branches to make deposits, and others who rely on cash are using those branches for withdrawals. As post offices take on a greater financial role, the security of branches and staff must be reviewed. In my discussions with sub-postmasters, they have raised concerns about security. I hope that the Minister will elaborate on what steps he has taken and what discussions he has had, or will have, with Post Office Ltd on the issue of branch security.