Release:
31 March 2003
The Welsh
Liberal Democrat Spokesperson for Communities, Peter Black, has warned that
hundreds of Post Offices and other shops in rural and urban communities across
Wales will be under threat as the result of new arrangements for the payment of
pensions and benefits that will come into effect tomorrow.
The changes
have been introduced by the New Labour Government in Westminster and mean that
from 1 April, pensioners and claimants will have their payments made directly
into their bank accounts unless they have opted for a Post Office card
account. These payments can amount to
up to 40% of a Post Office’s income but their loss will threaten the viability
of more than these vital community businesses.
Many people spend their money in local shops within minutes of drawing
it out. If they have to travel to the
nearest bank or receive it at home then those shops will also lose custom.
“The way that
the UK Government has introduced these changes is nothing short of scandalous”,
said Mr. Black. “They have actively
discouraged people from taking up a card account, which would enable them to
continue to draw money from the local Post Office. They know that Post Office
Counters are already in trouble and are systematically closing 150 local Post
Offices around Wales and yet they have now added additional financial woes onto
those who are continuing in business.”
“It is
inevitable that yet more Post Offices will close as the result of these changes
and that those closures will hit urban and rural communities alike. These Post Offices are a lifeline for
thousands of people and yet, despite the availability of grants and other help
introduced by the Welsh Assembly Government, a large number will not survive
the battle for survival. The impact on the Post Office network of this New
Labour policy will make Beeching’s cuts on the railways look like teddy bear’s
picnic.”
END