Government must rethink abolition of the Post Office Card Account

12.41.27pm UTC (GMT +0000) Wed 18th Oct 2006

Commenting on new figures uncovered by the Liberal Democrats that show 91,840 residents in Birmingham use the post office card account to receive their pensions or benefits. The Government is planning to scrap the Post Office Card Account in 2010 leaving many thousands without any form of bank account.

It is astonishing that the Government seems intent on destroying a service which is of such great value to so many people across Birmingham and in the country as a whole. The post office card account offers an accessible and affordable way for thousands of people in the area to receive their benefits, yet the Government is proposing to axe it. Without the vital revenue stream from the post office card account, the Government is further undermining the long term viability of the post office network meaning that even more than the 3,500 post offices already closed by Labour will be put out of business.

The Government must pay far greater heed to the effects the closure of post offices have on a community - nearly 8 out of 10 people feel that the closure of their local post office would present a loss of essential local services. This is yet another example of an over centralised Government entirely out of touch with local communities.