Community and Sub-Post Offices

Martin Docherty-Hughes Excerpts

Wednesday 27th March 2019 Commons Chamber

[Gavin Newlands]

The hon. Gentleman makes an excellent point. I will come on to detail some of that shortly, if I get a minute between interventions.

The recent survey by the National Federation of SubPostmasters makes for stark reading both for Post Office Ltd and the Government. It found that 77% of sub-postmasters believe that their remuneration rates for business banking are unfair, while only 9% thought them fair, and 67% thought the rates for personal banking were unfair. If that is felt in such huge numbers, I am confident that there is a serious problem emerging that must be addressed quickly. If the number of banking transactions were to continue to increase, 76% of sub-postmasters would be concerned that the level of profit from these transactions would be inappropriate, but 50% of them also had concerns about the volume of cash they had to hand, and a further 42% were concerned about the impact on customer queuing time.

I have visited post offices in my constituency, and unfortunately a picture has emerged that matches the one painted by the federation. When I spoke with those at Ferguslie Park post office, they agreed that the fees they received were not adequate, especially for the amount of transactions that they carry out. That post office plays an important role in administering and advising on benefit payments and has had little success in making sales on the likes of life insurance, savings accounts, mortgages and home insurance. It is therefore especially important that the post office has a secure financial future.

The federation is also concerned about post office closure rates. In July 2018, nearly 1,000 post offices in the sub-postmaster network were listed as temporarily closed—8% of the entire network.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

I congratulate my hon. Friend on securing this Adjournment debate. In Hardgate in my constituency, the Post Office has been unable to replace the closed post office, which serves Hardgate, Duntocher and Faifley. Does he agree that it is up to the Government to force the Post Office to re-establish Crown post offices, where the Post Office cannot meet that need?

[Gavin Newlands]

I totally agree. The first thing that has to be done, though, is to increase the rates that make post offices viable in the modern age. I hope the Minister will take that step.

In 2018, sub-postmasters were far more likely to state their intention to close in the coming year than small businesses in general, with 22% intending to close or downsize their operation. Those with such plans overwhelmingly came from deprived areas. Sub-postmasters also face increasingly difficult working conditions, with often 40-plus hours being dedicated just to the post office side of their business and 27% of them working longer hours in 2018 than 2017. They average fewer than 10 days’ holiday each year, and one third took no time off whatsoever. They also face less take-home pay, with 61% taking home less in 2018 than 2017, 76% making less than the national minimum wage for hours worked and 19% of them or their partners taking on extra work to supplement their income.

Since network transformation, many post offices designated as local post offices, such as Kirklandneuk in my constituency, have had some services removed, such as Parcelforce services and passport services, which may otherwise cross-subsidise the lack of remuneration for banking services. Clearly that would be less of an issue were they simply paid a fair rate from the banks.