Release:
27 February 2003
The Welsh
Liberal Democrat Spokesperson for Communities, Peter Black, has accused the UK
Government of putting more local Post Offices under threat by pressurising
customers to open bank accounts and putting obstacles in the way of those
seeking to open a card account, which will enable them to continue to draw
pensions and benefits locally.
Mr. Black has
written to the Department of Work and Pensions after being told by
sub-postmasters that the application form for the Post Office card account does
not include the possibility of opening the account at their local Post Office.
Many people have reported intimidation tactics whilst using the help-line
number in an effort to persuade them to open a bank account instead. Post Offices have been told that they cannot
advertise the card accounts yet and that they should not hand out forms to apply
for them.
The card
account is a way of allowing customers to draw cash directly from their local
post office without forcing them to their nearest bank. If taken up by enough people it will reduce
the loss of business at Post Offices and ensure that money drawn there will be
spent in local shops. One of the
consequences of paying benefits directly into bank accounts could be less
passing trade at corner shops situated near to Post Offices.
“I am
genuinely concerned that these tactics from the UK Government are designed to
prevent customers having a free choice”, said Mr. Black. “People are being led to believe that the
only way to keep on receiving pensions and benefits is to open an account with
a bank or a building society”.
“The Labour
Government is effectively diverting 75% of the pension and benefit business
away from Post Offices. In doing so they are passing a death sentence on
smaller Post Offices and undermining the local economy. At a time when business is being driven
outside towns into malls and business parks, we need to consider the huge
implications the closures of more Post Offices will have on our local
communities.”
ENDS