← LEADERSHIP TERMINAL

UK PARLIAMENT · SITTING

Kevin Hollinrake

MP for Thirsk and Malton · Conservative · United Kingdom

IN THEIR OWN WORDS

That issue is one of the many things that the people who signed the petition are concerned about, Dr Huq. One of the big things that the Government promised, which I agree with them about, is the need to encourage faster growth in our economy. Of course that is right, but look at where that growth is.

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The UK economy went through many challenges, of course, some of them caused by Brexit; the reality is that a change like that was bound to have a short-term effect—but only a short-term effect. The country grew faster than Germany and France during that period of time.

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As I said before, governing is not easy; we had many challenges ourselves, and we did not get everything right, but what we did during that difficult period of time—those 14 years—was get 1.2 million more people employed in our economy. Unemployment was halved during our time in office.

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Of course, many Government Members supported his leadership challenge. We are here now, looking forward to a general election coming down the track. We are ready for a general election when the Government are, because, unlike them, we have a strong leader—against their weak leader.

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I was, absolutely. I thank my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) for his excellent opening speech. He made so many good points, not least about the level of support for this petition.

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Members on the Government side of the House also feel betrayed and angry with their own leadership, for marching them up to the top of the hill and marching them back down again on many of these issues, but they do not feel as betrayed as the businesspeople in this country in particular.

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The complete record

Every one of 3,516 lines we hold for Kevin Hollinrake, in date order, each linked to its source. Free to read, in full, without an account. Page 20 of 71.

  1. We will continue our work with the Pregnancy and Maternity Discrimination Advisory Board to develop improved guidance, which may provide the further protection that he seeks. The hon. Member for North East Fife rightly asked how we can promote this legislation. We constantly work with stakeholders and various employer groups to talk about legislation that we are introducing, and we will continue to do that to ensure they inform the employers—their members—about the regulations. I thank everyone who participated in the debate, not least the hon. Lady, who has done incredible work in taking forward her private Member’s Bill. It is always a pleasure to be involved in legislation that receives cross-party support, and I am very pleased that that is the case today.

    DRAFT CARER'S LEAVE REGULATIONS 2024 DRAFT MATERNITY LEAVE, ADOPTION LEAVE AND SHARED PARENTAL LEAVE (AMENDMENT) REGULATIONS 2024 · 2024-02-21 · READ IN HANSARD

  2. Of course, where things go wrong, there is a natural recourse to the employment tribunal, which can determine whether a business has been reasonable or whether a person has been inappropriately discriminated against. We could potentially look at guidance in this area; we will take that away. On the time it has taken for us to get to this point, of course we seek to deliver these things as quickly as possible, but there has been a series of disruptions to our legislative programme over the past few years—not least covid and the cost of living crisis. We have introduced a number of pieces of legislation, as we discussed earlier. The hon. Member for Ellesmere Port and Neston referred to further protections, and of course we always look at that. Part of what we do in legislation is set a baseline that encourages cultural change.

    DRAFT CARER'S LEAVE REGULATIONS 2024 DRAFT MATERNITY LEAVE, ADOPTION LEAVE AND SHARED PARENTAL LEAVE (AMENDMENT) REGULATIONS 2024 · 2024-02-21 · READ IN HANSARD

  3. A lot of the discrepancies he referred to may be a result of the kind of question that is asked. The questions are not necessarily the same, but the numbers are around the same ballpark. There may be a few hundred thousand either side, but in the context we are probably in the right place. The hon. Gentleman and the hon. Member for North East Fife made a good point about postponement and who judges what is unduly disruptive. Our perspective is that it is right that the business—the provider of employment—determines that. Hopefully, most people acknowledge that most employers in the UK are decent businesses that do the right thing by employees. That is good businesses, and most are run by decent people.

    DRAFT CARER'S LEAVE REGULATIONS 2024 DRAFT MATERNITY LEAVE, ADOPTION LEAVE AND SHARED PARENTAL LEAVE (AMENDMENT) REGULATIONS 2024 · 2024-02-21 · READ IN HANSARD

  4. Member for Ellesmere Port and Neston mentioned the employment Bill, but he will be aware that there are six private Members’ Bills that will have some impact on businesses. As well as the draft regulations we are considering, we introduced flexible working legislation, neonatal care leave and the Employment (Allocation of Tips) Act 2023. Those are a number of requirements on business, and we always want to maintain a balance in relation to the impact on business and jobs. We think that this change strikes the right balance. The hon. Gentleman asked how many people will be affected. Our statistics came from the family resources survey 2021-22, which states that there are 4.9 million adult informal carers, and half of those hold down a job. That is where we got the figure of 2.5 million from.

    DRAFT CARER'S LEAVE REGULATIONS 2024 DRAFT MATERNITY LEAVE, ADOPTION LEAVE AND SHARED PARENTAL LEAVE (AMENDMENT) REGULATIONS 2024 · 2024-02-21 · READ IN HANSARD

  5. The Government are very pleased to bring forward these two pieces of legislation and to deliver on two of our manifesto commitments. Let me touch on the points raised by the shadow Minister and the hon. Member for North East Fife. The cost of carer’s leave to business is already around £33 million annually. Whether to extend it so that it is a paid right is an interesting question. As I said in my intervention, that would clearly mean a cost either for the taxpayer or for business, and we do not think, at this time, that that is the right burden to place on businesses, which are already facing difficulties from a number of sources, not least covid and the cost of living crisis. Indeed, we have legislated in a number of areas. The hon.

    DRAFT CARER'S LEAVE REGULATIONS 2024 DRAFT MATERNITY LEAVE, ADOPTION LEAVE AND SHARED PARENTAL LEAVE (AMENDMENT) REGULATIONS 2024 · 2024-02-21 · READ IN HANSARD

  6. We may be talking about the simpler cases coming forward here, but with 58 claims received, 52 offers have been made and 41 have been accepted without even a reference to the independent panel for people who are unhappy with the offers made. I do believe that the offers made are fair, but I am also happy to be challenged, in order to make sure that they are.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  7. The hon. Lady remarked earlier about the number of people coming forward following the ITV series, and I am keen for people to do that. It is important to say to all postmasters that they will be treated fairly. I know that she has some concerns about that, and she is right to raise concerns where she has them. I, too, have concerns about some elements of the original Horizon shortfall scheme. We are looking at that, in conjunction with the advisory board, to see what might be done to make sure that those payments were fair. Let me draw the hon. Lady’s attention to some of the stats on the new group litigation order scheme.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  8. I am sorry to intervene on the hon. Lady yet again, but people might listen to her speech more than mine at the end, so I am keen to get a point on the record about the non-disclosure agreements. In evidence to the Select Committee, the Post Office has been quite clear—it is certainly our position—that nobody will be held to their non-disclosure agreement, so everybody should feel completely at liberty to discuss the terms of their settlement with Members of Parliament and others, as they feel appropriate. It is important to get that on the record.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  9. The hon. Gentleman is rightly making a typically impassioned speech. I have been very careful throughout the whole time I have been involved in this matter, which is over four years, as a Back-Bencher and a Front-Bencher, not to play any kind of party politics with it. I put it on the record that the issues occurred under a series of Governments: the Labour Government, the coalition Government and the current Government. It is important that we look at the matter on a cross-party basis and seek to resolve it as such. I am keen to work with him on that basis.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  10. There is no doubt that the ITV series has rightly heightened awareness both in this House and further afield, and I welcome that, but much work was going on in this space before it aired, including on how we can overturn more convictions on a blanket basis. I was working on that with the advisory board before the series aired, so it is not right to say that we would not have got to this position without it. We probably would not have got here as quickly, but the hon. Gentleman must concede that this work has been going on for years—although I welcome the fact that it is happening more rapidly now.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  11. That should mean faster resolution of claims for all parties involved in the compensation process.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  12. As the Secretary of State said recently, we continue to look for ways to speed things up, and we work closely with the Horizon compensation advisory board to ensure that we deliver faster compensation, and that compensation is seen to be fair and is fair. Recently, we introduced measures such as fixed sum awards of £600,000 for overturned convictions, and £75,000 for the GLO. To be clear, a fixed sum award is an option for people who believe that it will provide sufficient redress. People who believe that their claims are above that level can go down the full assessment route, but the fixed sum award route has the benefit of speedy resolution of claims and reducing the number of people in the queue who want to go down the full assessment route.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  13. I am pleased that the shadow Minister likes our policy on banking hubs, which came principally as a result of our legislation on access to cash. Thirty are open already, and another 70 are in the pipeline, so we will be at 100 and we anticipate that about 500 will be rolled out across the country. Clearly there is more to do to strengthen the relationships with postmasters, but I believe that the Post Office has made and is making some positive steps forward. Members rightly raised compensation, which speaks to the current management culture at the Post Office. Getting compensation to those impacted by the scandal has not been as swift as we would have hoped. I can assure Members that my Department has been working hard on compensation, alongside colleagues in the Post Office who were recruited specifically for that purpose.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  14. That has been stressed on every occasion we have met. We have also very much stressed the need to control central costs—indeed, to reduce them—so that we see more of the remuneration heading towards postmasters. The clear strategy for the Post Office to do that and ensure that the highest share of income goes to postmasters is through parcels and banking services, which are key; we have discussed that regularly when we have met. That point was raised by the hon. Members for Midlothian (Owen Thompson) and for Strangford (Jim Shannon). I have been clear that the banking framework, which is negotiated between the Post Office and the UK banks, should be as ambitious as possible. Banks have saved about £2.5 billion a year through closure of branches, and in our view a greater percentage of that should go to postmasters directly.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  15. Post Office has also strengthened how it listens to postmasters, with two postmaster conferences and a nationwide postmaster consultation conducted each year to provide the foundation of Post Office annual priorities. I experience at first hand how postmasters in the network today can challenge Post Office leadership on various issues when I chair a regular working group between the Post Office and the National Federation of SubPostmasters. I know that, according to various commentators, past experience of that group has been mixed, but my experience from working with them on an ongoing basis has been that the challenge they provide is constructive but robust. I know that branch profitability is the top priority for postmasters, and I am pleased that the Post Office is committed to increasing the share of income going to postmasters.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  16. To pick up the point made by the hon. Member for Motherwell and Wishaw, it is held by Mark Eldridge, who is a serving postmaster at Great Massingham. He is seconded to the role, so he may no longer be in that post office on a daily basis, but he is nevertheless a serving postmaster. He leads the day-to-day relationship with postmasters. Alongside those senior appointments, the Post Office has reformed operational matters to improve culture and trust between senior management, staff and postmasters. Improved training packages and the hiring of more than 100 new area managers to provide dedicated local support are all examples of positive changes. At my meeting yesterday with Voice of the Postmaster and Communication Workers Union national postmasters, they spoke highly of the support and engagement provided by those area managers.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  17. That is so important, because, as I have said many times, without postmasters, there is no post office network. In December 2019, the parties to the group litigation in Bates v. Post Office Ltd took part in a mediation session and issued a joint statement confirming Post Office’s commitment to resetting its relationship with postmasters. Since then, Post Office has improved the board’s structure by ensuring that two non-executive director postmasters nominated and elected by other postmasters have a seat on the board. That is intended to ensure that postmaster voices are being heard at the highest level and that senior management are aware of the impact that decisions will have on those on the frontline delivering services. Post Office also created a postmaster experience director role, which is filled by a serving postmaster.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  18. On the point made by the shadow Minister about the current board, no one serving on a day-to-day basis on the current board was there at the time of the scandal. As I said, Nick Read joined in 2019, and only one member of the board was there at the time, but they are on extended leave on health grounds and do not work on the board on a day-to-day basis. No members of the senior management team were there at the time. Post Office is taking steps to right the wrongs of the past. However, it is also important to highlight what it has done with a view to the present and future of the business to improve the culture and ensure that a similar situation can never arise. Crucially, Post Office is taking steps to restore trust between itself and postmasters.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  19. The Post Office scandal is one of the biggest miscarriages of justice in living history, and the victims must get the justice they deserve. I do believe that today’s Post Office is different from the past, but restoring trust will take time. That does not mean that we are satisfied with the current situation. This will never be about quick fixes; it will be about fundamental changes in every part of the organisation, and that change will not occur overnight. When the current chief executive of the Post Office, Nick Read, started in September 2019, he made it clear that as well as delivering the essential services that we value across our constituencies, the Post Office needed to apologise for the events of the past and fully address them.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  20. There have been many kind words from contributors about my work, but it is a bit part compared with that of many others who have campaigned long and hard on this issue, as have people outside this place, including members of the legal profession and the media, many of whom we are familiar with for their great work on bringing this scandal to light. On the governance issues, I am fond of a quote by Emerson, who said: “An institution is the lengthened shadow of a single man.” I am keen to ensure that the Post Office’s management culture is in the right place. A positive management culture is paramount to the health of any organisation, so I very much welcome the opportunity the debate brings to consider that point.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  21. May I first pay tribute to the hon. Member for Motherwell and Wishaw (Marion Fellows) for securing this debate and her fine work as always on the all-party parliamentary group on post offices, and to the Backbench Business Committee for bringing forward this debate? I also pay tribute to all Members of this House and the other place for their work on this issue. I promise the shadow Minister, the hon. Member for Bethnal Green and Bow (Rushanara Ali), that I do not need anybody to hold my feet to the fire, but it is good that we have this momentum. I very much appreciate the work that has been done by many.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  22. Despite the positive progress made since 2019, there are clearly still improvements to be made. Where the Post Office makes mistakes, I will continue to challenge the leadership. Where action is needed, I will not hesitate to act decisively.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  23. Again, I am very keen that the gentleman she referred to passes on his evidence to the inquiry, because I think it might find it very useful. I thank the hon. Member for Strangford again for his very kind words. Understandably, many people are still affected by the scandal and in terms of my performance as a Minister—whether I am the right person or whether I am fit for purpose—I guess the jury is out. I quite understand that. People will judge me at the end of the process, but while I am here, I am very keen to make sure that the full and final settlements are made as quickly and as fairly as possible. To conclude, I have outlined some of the progress the Post Office has made to improve its culture and its relationship with postmasters, and its determination to right the wrongs of the past.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  24. There may be other cases we need to look at, including that case, so I am very happy to have that conversation with him. The hon. Member for Chesham and Amersham (Sarah Green) talked about non-disclosure agreements and raised the tragic case of Martin Griffiths in that context. As I said to her in an intervention, it is absolutely right —the Post Office has said this and it is also our position—that no NDA should prevent somebody speaking to relevant individuals, including their Member of Parliament. It is the case, in whatever part of our system and wherever an NDA is signed, that no NDA can ever prevent somebody speaking out—going to the police or other authorities—about a crime. That is the case in any circumstance. The Official Secrets Act only covers the confidentiality of mail and it is no longer signed by postmasters.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  25. Ofcom does not regulate the Post Office; it regulates Royal Mail. There is a distinction there. The hon. Member for Wansbeck talked about who knew what. That is something we very much want to know. The inquiry’s purpose is to find exactly that. He made the absolutely correct point that no amount of redress could ever make up for what has happened to some people in this scandal. People have taken their own lives and people have been made bankrupt. The least we can do is try to make that good by providing them with full and fair compensation. I am very sorry to hear about what happened to Janine. I am very happy to look at that case with the hon. Gentleman, as he asked me about it offline the other day. It is certainly the case that if an employee suffered financial detriment, their employer should be able to claim on their behalf.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  26. Members for Wansbeck (Ian Lavery) and for Motherwell and Wishaw asked about the surpluses and where they ended up—whether they went into a suspense account, into profit and loss, or into bonuses for directors. We are currently conducting an exercise to find out where that money went and how much it was, and we will report accordingly. The hon. Member for Inverclyde (Ronnie Cowan) talked about the role of Fujitsu. We welcome the admission from Fujitsu that it holds moral responsibility for the scandal and a responsibility to contribute towards the compensation bill. We will certainly take that up in due course, but it is right for us to ensure that we understand the extent of the bill. The inquiry is looking at other matters surrounding Fujitsu and it is right that we wait for the outcome of that. He mentioned the role of Ofcom.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  27. Of course, we as a Department have learned from this ourselves. We will continue to look at governance arrangements and make sure they are fit for purpose. We are not planning any further changes at this time. Members of the House and others have looked at different models of governance of the Post Office, such as mutualisation. As I said, I met with the Voice of the Postmaster and the CWU yesterday, and I am happy to have further conversations with them about that potential route. We are confident that our representative at UK Government Investments, Lorna Gratton, is doing a good job to ensure that the Post Office’s governance is fit for purpose. The hon.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  28. On governance, strong and effective leadership of the Post Office is essential. As is set out in the Post Office articles of association, the Business Secretary appoints the chair and approves the appointment of directors of Post Office Ltd. It is a role that the Government take very seriously. As Members will be aware, following a conversation with the Business Secretary in late January, Henry Staunton agreed to step down as chair of the Post Office. We judged that the current chairmanship was not proving effective and had a difficult decision to make between changing course or waiting and hoping that it improved. The shadow Minister referred to ministerial scrutiny, and I think all Ministers should learn the lessons of the past in terms of their approach to concerns that are raised.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  29. While the recent disclosure issues have been disappointing, they were the consequence of a failure of process rather than a reflection of the management culture. We do not regard them as a deliberate obfuscation, as the hon. Member for Motherwell and Wishaw said. Nevertheless, it is a serious and unacceptable matter, and we certainly want to ensure that they do not happen again. It was reassuring to hear Sir Wyn Williams’s comments on Friday that he was “impressed” that the Post Office’s new lawyers have a “grasp of the scale of the disclosure exercise”, and that he currently has no reason to doubt that the Post Office will continue to assist the inquiry by disclosing relevant material. The inquiry will also look at the future of the Post Office itself from September this year.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  30. There may be instances of that, although not all shortfalls occur as a result of software problems. I am happy to look at any cases of that that the hon. Lady has, but I have to say that it has not been raised with me thus far in my conversations with the National Federation of SubPostmasters, the Voice of the Postmaster and the CWU. However, I am happy to look at that as we proceed. Compensation is one part of providing justice; the other is truth and accountability, which the Post Office has told us it is fully committed to. The Post Office Horizon inquiry has been established to uncover what went wrong, and the chair, Sir Wyn Williams, continues to make good progress. The Post Office is co-operating fully with the inquiry.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  31. Some 2,417 offers have been made and 2,051 have been settled, meaning that 84% of claims have been settled. The hon. Member for Motherwell and Wishaw raised the total compensation amount—I think she mentioned the figure of £2 billion. The maximum budget set thus far is £1 billion. That is the number we are working to at the moment. However, we have always been clear that that is not a cap and it will not stop people getting fair compensation for their claims. On the matter of more people coming forward, we are absolutely united with the Post Office in calling for anyone impacted by the scandal to bring forward their claims as soon as possible. I welcome the fact that the ITV drama has helped to uncover people who had not previously come forward. The hon. Member for Motherwell and Wishaw asked about ongoing shortfalls.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  32. £27 million has been paid out to 479 claimants among the original 555 postmasters who took the Post Office to court. A total of 58 completed claim forms have been received, and 52 claimants have received offers. Of those, 41 people have accepted those offers without going to the next stage, the independent panel. That indicates that people feel that the offers they are receiving are fair, because there are two further stages in that process if they feel that they are not getting fair settlement of their claims. Some £98 million has been paid out through the Horizon shortfall scheme. There were 2,417 claimants who claimed prior to the original deadline, which has now been extended for late applications, so there is no final date for applications in that scheme.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  33. We are looking at ways to ensure that that scheme’s compensation is fair and seen to be fair. More than £160 million has been awarded already to 2,700 victims, and 64% of all claimants who made their claims prior to the ITV series—more will come forward as a result, which we welcome—have had full and final compensation. Much work has been done by me, my predecessors and many officials, who do a tremendous job trying to right the wrongs of the past, but there is more that we can and have to do. As of 6 February, more than £35 million has been paid out to those with overturned convictions. There have been 42 claims submitted already for the 101 convictions that been overturned; 36 offers have been made and 32 have been accepted. A very significant proportion of those have taken the fixed sum award.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  34. I thank my right hon. Friend for his intervention and his work on this matter. It is interesting that more people are coming forward, through colleagues, to the compensation processes, which is very welcome. Some colleagues have written to all their postmasters in their area, asking them to come forward. That is a positive step. I was not aware that I had a postmaster in my area who had been affected—Sam Harrison of Nawton, near Helmsley, who sadly passed away last May. She was one of the 555 members of the GLO scheme. Sadly, she has passed away. New cases come to light all the time. I am very happy to work with my right hon. Friend to see what information we might provide him, so that he can take forward those actions. As I said, we are aware of concerns about the Horizon shortfall scheme, which was the first scheme set up.

    POST OFFICE MANAGEMENT CULTURE · 2024-02-08 · READ IN HANSARD

  35. And that is why I have been clear that the Post Office should be ambitious in its negotiations with the banks for the next iteration of the banking framework agreement, which already provides significant revenue into the post office network. We welcome that, but there are further opportunities. The hon. Gentleman may want to speak to the Economic Secretary to the Treasury about other services, such as banking hubs. As I said earlier, there are 30 hubs around the country already and 70 more in the pipeline, but our aspiration is to get 500, and it may be suitable to provide a hub in his constituency.

    POST OFFICE SERVICES: ISOLATED COMMUNITIES · 2024-02-08 · READ IN HANSARD

  36. That is why we have legislated to protect access to cash to ensure that customers can continue to access everyday banking services at the post office. This development is important for the hon. Gentleman’s constituency as, for example, around 50% of bank branches in Stretford and Urmston have closed since 2015, so post offices are key in providing access to cash in the constituency, as they are across the country. In December, £3.3 billion in cash was either deposited or withdrawn across the country. The post office network is therefore a crucial component of this country’s long-term provision of cash and banking services.

    POST OFFICE SERVICES: ISOLATED COMMUNITIES · 2024-02-08 · READ IN HANSARD

  37. We were pleased to see the Post Office launch its Parcels Online business last year, whereby customers can select and pay for Evri and DPD products online before dropping parcels off at their nearest post office. The Post Office is now also rolling out a similar proposition across the physical network, which means that customers can compare different carriers to choose the option that best suits their needs. We see this as a significant opportunity to improve competitiveness and competition in the market, and I am keen that the Post Office expand that proposal further to include more carriers. There is also a major opportunity, as the hon. Gentleman puts it, in banking services. All customers should have appropriate access to banking and cash services wherever they live.

    POST OFFICE SERVICES: ISOLATED COMMUNITIES · 2024-02-08 · READ IN HANSARD

  38. When it comes to consumer habits and accessing Government services, it is not our place to dictate to people where they should access those services—I think that we often like to access those services online. None the less, we are keen to retain what services we can. The hon. Gentleman did point to the DVLA contract, which has been extended for another year. I think that everyone would like to see that contract extended on a longer-term basis, but negotiations will have to continue. Changes in consumer behaviour are significantly driving down the number of letters being sent, which is also having an impact on post offices. Nevertheless, there are reasons to be optimistic.

    POST OFFICE SERVICES: ISOLATED COMMUNITIES · 2024-02-08 · READ IN HANSARD

  39. However, in such instances, the Post Office ensures services are maintained as quickly as it can. I understand from the Post Office that there is interest from a community group in taking on the Partington branch, with a further meeting scheduled next week, so I am hopeful that the branch can be reopened as soon as possible. I note the hon. Gentleman’s point about the provision of a mobile service, and I am happy to take that away and update him. It is not easy to secure, as I have experienced myself, but we will do whatever we can. We are not blind to the realities of taking on and running a post office. Like any other retailer, post offices face pressures from continually evolving consumer behaviours, particularly as consumers shop online more, driving footfall away from our high street.

    POST OFFICE SERVICES: ISOLATED COMMUNITIES · 2024-02-08 · READ IN HANSARD

  40. From my own constituency experience, I fully appreciate the impact a branch closure can have on a community. It can be disruptive, particularly for communities without nearby alternatives, but that fluctuation is part of the modern, dynamic, franchise-led business that the Post Office primarily is. The network is made up of small businesses and, just like any other franchise-based business, the Post Office cannot control a franchise’s decisions about their future. As postmasters move on, branches close and new ones open, as the hon. Gentleman has experienced at first hand, with the opening of Stretford post office in its new permanent location late last year. The reasons for a temporary branch closure are generally outside the control of the Post Office.

    POST OFFICE SERVICES: ISOLATED COMMUNITIES · 2024-02-08 · READ IN HANSARD

  41. In fact, more post offices have opened this year than have closed and the network is as large today as it has been for five years, with around 11,700 branches open. As the hon. Gentleman will know, 12 branches are operating in in Stretford and Urmston, serving around 13,000 customers each week. The post office network in the area supports around 60 full-time equivalent jobs and has an economic contribution to his constituency of over £6 million each year, as well as driving an additional wider high street spend of £5 million a year. I am aware of the hon. Gentleman’s concerns about the situation in Partington, where I understand the post office branch closed last year when the postmistress retired after an incredible 35 years serving her community.

    POST OFFICE SERVICES: ISOLATED COMMUNITIES · 2024-02-08 · READ IN HANSARD

  42. It is understandable that the hon. Gentleman wants to debate the issue, given that his constituency has seen changes in its provision of post offices in recent months and years. The Post Office has the commercial freedom to deliver the branch network within the parameters set for it by Government. Those parameters include minimum access criteria and minimum services to be provided at branches across the country. For example, 99% of the population must live within three miles of their nearest branch and 95% of the total urban population must live within one mile of their nearest outlet, which relates to the hon. Gentleman’s constituency because it is in an urban area. Despite all the challenges faced by retailers in recent years, it is pleasing that the Post Office meets and exceeds those criteria at a national level.

    POST OFFICE SERVICES: ISOLATED COMMUNITIES · 2024-02-08 · READ IN HANSARD

  43. I congratulate the hon. Member for Stretford and Urmston (Andrew Western) on securing this important debate on a subject close to my heart, as the representative of the rural seat of Thirsk and Malton. We all know how highly our communities value post offices, and our constituents have deep concern whenever they are closed, even temporarily. They value them because of the services they provide but also, as the hon. Gentleman puts it, because they are the provider of trusted relationships—I could not agree more. The post office network is still significant, with over 11,500 branches across the country. Recent research by the London School of Economics highlighted that the network makes a valuable contribution to the economic health of our high streets, generating £3.1 billion of additional spending every year.

    POST OFFICE SERVICES: ISOLATED COMMUNITIES · 2024-02-08 · READ IN HANSARD

  44. Member for Stretford and Urmston referred to, an annual network subsidy of £50 million, which helps to safeguard services in the uncommercial parts of the network. The Government have been clear that post offices should be a valuable social and economic asset for communities and businesses for years to come. We continue to work with the Post Office to ensure that the organisation and the network are fit for the future, and we always welcome views on the network, such as those expressed today. I thank the hon. Member for Stretford and Urmston for introducing this important debate, and the other hon. Members who contributed to it. Question put and agreed to.

    POST OFFICE SERVICES: ISOLATED COMMUNITIES · 2024-02-08 · READ IN HANSARD

  45. I have always been clear in this House that if Members have particular local issues, I am happy to work with them and the Post Office to try to deliver solutions on a case-by-case basis. Although there are opportunities, that does not mean we are out of the woods. Branch profitability is a top priority for postmasters, and I am keen to ensure that it can be enhanced wherever possible. I assure Members that we remain steadfast in our support for the network. We have provided significant financial support to sustain the nationwide network—over £2.5 billion in funding in the past decade alone—and we are providing a further £588 million for the Post Office between 2022 and 2025. The moneys include investment and, as the hon.

    POST OFFICE SERVICES: ISOLATED COMMUNITIES · 2024-02-08 · READ IN HANSARD

  46. The hon. Gentleman raises an important point. Banking hubs are not a one-size-fits-all solution. There are other solutions, some of which are facilitated by the banking framework. Enhanced facilities in post offices is one such solution—for example, a separate line in the post office. Smart ATMs are part of the solution. OneBanx provides a mini-banking solution that can be provided in libraries, for example. Different financial organisations, such as some of the building societies, are rolling out such provisions, but we see banking services, and the remuneration that flows from them, as critical to ensuring that we have a sustainable network of post offices.

    POST OFFICE SERVICES: ISOLATED COMMUNITIES · 2024-02-08 · READ IN HANSARD

  47. It needs to work at pace to deliver compensation to the thousands of postmasters who fell victim to a faulty IT system, as well as to continue the essential work to implement the necessary operational and cultural changes needed in the business. As such, strong and effective leadership of Post Office Ltd is a necessity.

    POST OFFICE LTD · 2024-01-29 · READ IN HANSARD

  48. I can confirm that there were issues beyond the handling of the Horizon scandal, but as hon. Members would expect, I am not able to comment on the specifics of individual human resources cases. As the Business Secretary has said, Post Office governance is a priority for the Government. The Post Office is a public corporation; as such, the Post Office board has responsibility for the strategic direction of the company. While there was a clear need for new leadership of the board, we continue to have confidence in the other board members, who are experienced executives with a range of business expertise across the legal, financial, insurance, asset management and pensions sectors; there are two elected postmaster non-executive directors, too. The Post Office faces unprecedented challenges.

    POST OFFICE LTD · 2024-01-29 · READ IN HANSARD

  49. Following a conversation with the Secretary of State for Business and Trade over the weekend, Henry Staunton agreed to step down as chairman of the Post Office. An interim chair will be appointed shortly, and a recruitment process for a new chair will be launched in due course, in accordance with the governance code for public appointments. I will update the House when we have further details. The current chairmanship was not proving effective, and we had a difficult decision: change course, or wait and hope that it improves. Given the challenging context for the Post Office and the importance of the role of chair, the Business Secretary took decisive action. I understand that Members would like more details around the decision, especially considering that the Post Office is rightly under heightened scrutiny at this time.

    POST OFFICE LTD · 2024-01-29 · READ IN HANSARD

  50. On the issue of confidence in the individuals, let me say that, having been a board director myself for 30 years, you are only as good as your last game, so it is fair to say that, at this point in time, we did not feel that Henry Staunton was the right person to lead the board.

    POST OFFICE LTD · 2024-01-29 · READ IN HANSARD