Post Office Network

Debate between Ruth Cadbury and Gregory Campbell

Tuesday 10th March 2020 Westminster Hall

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Gray. I agree with the powerful opening remarks of the hon. Member for Motherwell and Wishaw (Marion Fellows) and thank her for securing the debate. Other hon. Members have made important points about the significance of post offices for local communities and town centres, which I will focus on.

A tsunami of post offices and post office counters were lost in my constituency after 2011. We then had 10 post office counters—no Crown post office—of which we have lost three in the three years since 2017. The most important served Brentford high street, where the community has doubled in the past 10 years, to roughly 10,000 to 15,000 households.

The post office counter was in a shop in the middle of the town centre, where many buses passed. It served a large population and a large number of small businesses. There was a one-year notice period during which everyone knew that the parade building in which the post office was situated had to be emptied because it was due for redevelopment, so the post office could not remain in the premises. The building has subsequently been demolished. It also happened that the postmaster decided that he did not want to carry on the business, which is an issue in itself.

The good news is that a couple of months from now—18 months after the post office counter closed, during which time we have had no service in the whole of Brentford—we will get a new counter at Costcutter on the high street. We will have had 18 months without a service that many people feel is vital. We could have avoided the gap, because the Post Office, the local authority, I as the MP and the local councillors knew that there was a need to find new premises and probably a new postmaster. The Post Office sought applications, but in the first round there were only two applicants from the many businesses and organisations in Brentford that could have opened a counter. Neither fitted the criteria, so there was another application round. I am not sure whether Costcutter tipped over the bar in that round and was accepted or whether there was a third round.

Why are people not applying for or retaining counters? As the hon. Member for Motherwell and Wishaw and other hon. Members have mentioned, it is because the margins are so slim, the pay is too low, the requirements for only a qualified person to cover the post office counter make it restrictive in terms of leave and sickness, the increase in robberies and violence makes retail businesses physically risky, and the Horizon project has damaged the Post Office’s reputation. What is the Post Office doing about that? I understand that it has an element of a public sector duty as a fully Government-owned company that, as we all see, provides essential public services.

In my correspondence and meetings with the Post Office, frankly, I have found it very passive. I have received no coherent response from it or the former Minister—I have not had a chance to speak to the current Minister about it. From the response, it feels as though the Post Office is passive. A Post Office representative told me yesterday that, “If no one applies, what can we do about it?” That is not a proactive response from an important Government-overseen operation.

The Post Office access criteria require

“99% of the UK population to be within three miles of their nearest post office outlet”

and

“95% of the total urban population across the UK to be within one mile of their nearest post office outlet”,

but that does not make a lot of sense if the community, or the place that people can get to by bus, does not have a post office. There is a post office just over a mile from Brentford, but people cannot get there by bus and there is nowhere to park anywhere near it, because it is a tiny little shop. We should have one in Brentford town centre. The Post Office should recognise that. I have now been told that the Post Office has realised that Brentford is a priority and should have a main post office, but why did it not think Brentford was a priority two years ago, when we knew that there was going to be an issue?

I ask the Minister and the Post Office to work together to address the public sector duty and deliver a core service in all town centres, which we could define. We could use the PTAL—public transport accessibility level—grading used in planning to define the criteria for the quality of public transport access, parking and so on. We could also look at grants and the transaction costs.

The hon. Member for Motherwell and Wishaw talked about business declining in the Post Office’s core services, which is true, because many people use services online that they used to go to the post office for, but where is the Post Office looking at new business nationally, such as basic banking and new opportunities? Where is the entrepreneurial spirit to combine the best of private sector entrepreneurialism and new technology with the public sector duty—in a sense, the Government-perceived monopoly for services?

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does the hon. Member agree that part of the problem is that successive Governments have not looked at those issues? They seem to perceive the Post Office as a business of the ’90s and 2000s, rather than one for the current and future generations.

[Ruth Cadbury]

The hon. Member expresses exactly my feelings about dealing with the Post Office—it is passive; it is backward-looking; it is old-fashioned. There is an inherent benefit to post offices, both in terms of their brand reputation and the legal governance position.

The Post Office has a new chief executive, who has been in post for just six months. My understanding is that it will soon release a strategic review about its role. I am looking forward to hearing positive, forward-looking answers to my concerns, so that my constituency and my town centre, like so many other villages, town centres, suburbs and towns, is served properly by this important, Government-owned, public service.

Women and Low Pay

Debate between Ruth Cadbury and Gregory Campbell

Wednesday 18th November 2015 Westminster Hall

[Ruth Cadbury]

My hon. Friend is absolutely correct: this is about not just the low pay women receive, but the interconnection with zero-hours contracts, the benefits regime, tax credits and, of course, pensions, because a working life on low pay means a retirement on a low income.

Although the pay gap among top earners is nearly 55%, we also need to ensure, as my hon. Friend said, that we address women’s pay at the other end of the spectrum, among those who are stuck in low-paid minimum wage jobs, who are, too often, on a zero-hours contract. Indeed, the majority of low-paid workers are women, and three in five minimum wage jobs are held by women.

Every major piece of legislation that has improved the lives of women has been introduced by the Labour party. From the National Minimum Wage Act 1998 to the Equality Act 2010, Labour has always been at the forefront of the fight for equality. The Government certainly know how to talk the talk on equality, and the Prime Minister pledged to end the gender pay gap “within a generation”, but with 85% of Government tax and benefit cuts hitting women, Ministers are giving with one hand and taking from women with the other.

[Mr Gregory Campbell (East Londonderry) (DUP)]

I congratulate the hon. Lady on securing the debate. She alluded to the Prime Minister’s comments about dealing with the issue within a generation. Does she agree that although successive Governments, including the Labour Government, have made marginal progress—some have made more significant progress than others—our ambition should be about much more than dealing with this issue within a generation? It should be dealt with immediately—within the lifetime of this Parliament.

[Ruth Cadbury]

The hon. Gentleman is absolutely right: we need action, not words. One of those actions is the living wage—or should I call it the true living wage, so as not to confuse it with the rebranded minimum wage? The true living wage is an hourly rate set independently and accredited annually. It is calculated according to the basic cost of living, not median earnings, unlike the new national living wage. The current living wage is £8.25 an hour, with the London living wage at £9.40 an hour. Employers choose voluntarily to pay the living wage.

Labour local authorities are taking the lead in rolling out the living wage. I am proud of the role I played in Hounslow Council in implementing it for the staff of not only the council, but its contractors, many of whom are women. That is making a difference locally to many women’s lives and workplaces.

During the recent living wage week, my hon. Friend the Member for Stretford and Urmston (Kate Green)—the shadow Women and Equalities Minister—highlighted the importance of fair pay for women on a visit to a group of school meal staff in Camden who had recently been awarded the London living wage. That pay rise was due to a sustained campaign by the Camden New Journal and Unison, which put pressure on the company that employed the women so that it would give them the living wage they deserved. On receiving her pay increase, one of the women was delighted. She said the extra few pounds a week meant she would be able to save a bit of money each month and eventually have enough to go on a family holiday—her first. That made such a difference to her.

That is good for not just the employees, but their employer, which has seen increased staff satisfaction, leading to higher retention rates. Indeed, it previously had high staff turnover, with 40 vacancies to fill last summer; this year, it had only two. That is the point: having a large section of our workforce on a low wage is bad for business and bad for the economy. The Government consultation on the gender pay gap discovered that equalising women’s productivity and employment with men’s could add almost £600 billion to the economy.

The Government have taken some lessons from the last Labour Government. One is that, for most women, childcare is a barrier to labour market participation, and that is even truer of women on low pay. The Sure Start initiative was introduced because Labour recognised that women were more likely to be in low-paid jobs and, therefore, that childcare needed to be subsidised to help them back into work.

It frustrates me that, to help women back into the workforce, there has to be recognition that women’s employment is, on average, less well paid and of less value. Although it is good to see more women able to participate in the labour market, TUC research has shown that more than half the job growth for women since 2010 has been in low-paying sectors. Why is women’s work less well paid? The work that women do is crucial to the functioning of society, but their pay does not reflect that.

Despite the fact that women’s qualifications are as good as, or better than, men’s, they are not rewarded. Women occupy 78% of jobs in health and social care—a sector where the average salary is £40 per week less than the UK economy average. By comparison, men account for 88% of those working in more lucrative sectors, such as science, technology and engineering.

It is harder for women to find good-quality jobs. Evidence suggests that women become “discouraged workers”, resulting in fewer of them working or actively seeking work. They are discouraged workers because they face real challenges in finding decent-quality work, and the work they traditionally carry out, such as catering, cleaning and caring, is too often low paid and undervalued.