Post office account is a 'real lifeline' (From Witney Gazette)

Post office account is a 'real lifeline'

2:33pm Tuesday 21st March 2006 in Witney

BAMPTON villagers are leading a protest against Government proposals they fear will threaten the future of their post office.

More than 700 people have signed a petition against plans to scrap the post office chip-and-pin account, and replace it with a system where benefits are paid directly into customers' bank accounts rather than into their post office account. The new system, which could be fully implemented by 2010, will mean people will have to open a bank account, instead of using their post office card account. Once people have opened a bank account, which is a partner of the post office, they will still be able to collect payments from the post office.

But the National Federation of Sub-Postmasters (NFSP) estimate that 60 per cent of people with bank accounts will not be able to access their account at post offices.

Martin Barrett, Bampton postmaster, said: "If people can't come to the post office to collect their benefits, the sub-postmasters will lose a very large chunk of their income.

"And if people don't come in, they won't buy other things.

"I am seriously worried this will clear the way for the Government to shut us down.

"I am seriously worried this will clear the way for the Government to shut us down."

Martin Barrett, Bampton postmaster

"Rural communities will really lose out. Elderly people will have to travel to Witney to go to the bank, which is a hell of a lousy deal. There's not much of a bus service.

"There's an HSBC in Bampton, but it's only open three days a week. There's a cashpoint, but it always runs out of money, and the last thing elderly people want is to stand out on the street corner getting money out.

"I really feel sorry for them."

Jonathan Phillips, a district councillor for Bampton and director of the Oxfordshire Rural Community Council, said many people in rural areas did not have bank accounts.

He said: "It's awful, we have got to try to get the Government to change their minds.

"A lot of people don't have bank accounts if they remove the chip-and-pin system, it's going to be an absolute nightmare. It will especially affect elderly people, who are used to going to the post office to collect their pension.

"The post office is a real lifeline for them."

Matt Adams, of the NFSP, said: "Many customers who live in rural areas may not have easy access to their bank, and may be forced to withdraw cash via an ATM machine, which may also make a charge.

"Also, they may be sent offers of credit cards and loans, meaning they may fall into debt.

"The problem is that this is a bank-based solution, but what we need is a post office-based solution."

A Department for Work and Pensions spokesman said: "We introduced the post office bank account system to get people used to using a bank account, and we funded the system. It is actually very expensive for us, and, therefore, for the taxpayer.

"It costs £1 per transaction, as opposed to about 1p for normal bank accounts.

"People will still be able to collect their pension or benefits from the post office in the normal way, but they will be using their own bank account which is much more flexible than the post office account. All the major banks are post office partners."