Scrapping Pension Book Means 1000 Fewer Customers For Local Post Offices, Says Councillor Kingsley

12.00.00am GMT Fri 5th Dec 2003

Kensington & Chelsea Liberal Democrat councillor, Jennifer Kingsley, today revealed new figures showing that local post offices will lose more than 1000 customers, as pensioners will in future collect their entitlement from banks and building societies.

The figures have been produced by the independent House of Commons library, and show that the Government's plan to scrap the pension book will result in a massive loss of revenue for the post office network.

'The Government is writing to all pensioners and benefit claimants who currently collect their money from post offices, asking them to choose one of three 'direct payment' options. The new figures show that, nationwide, up to 10 million people who receive their money from the post office, including 2,850,000 pension book users, will in future obtain it from a bank or building society. The exodus will mean post offices are robbed of vital income as they receive a fee for processing each benefit payment.

Many pensioners have reported being talked into signing up for new bank accounts and internal Government documents reveal that staff are under pressure to push to customers into taking this 'cheap' option.

Cllr. Kingsley said:

"Millions of pensioners chose to have a pension book. The Government is now telling them to think again. Heavy handed tactics will create a mass exodus of pensioners out of the post office and into the high street banks.

"The plans will rob the post office network of vital revenue and will accelerate the rate of closures. Many of the pensioners who want to stick with the post office could be met with a permanent 'closed' sign.

"'The government's plans are driven by cost cutting, not by what is best for pensioners, not by a desire to improve the quality of local life. Many, particularly the older pensioners, are comfortable with what they know and understand. For many, too, the post office is a hub of community life. It is not too late for the Government to think again and allow pensioners to hang onto their pension books."