Campaign to save UK Post Office card account

A campaign is being started this week to try to persuade the government to reverse its decision to end a crucial contract which could spell closure for thousands of Britain’s post offices.

The National Federation of Sub-Postmasters is hoping public pressure will make the Department for Work and Pensions re-consider its decision to end the contract for the Post Office card account through which millions of people receive benefits and pensions.

A petition by the federation says: “We believe that the post office network provides a vital service to local communities in both urban and rural areas, which are threatened by the government’s withdrawal of services from local post offices.”

Royal Mail has some 14,400 branches, which are facing an increasing challenge to bring in new business as government work declines. The decision to allow pensions and benefits to be paid direct to bank accounts in recent years has slashed the pounds 400m the network received from operating the system. The number of people picking up payments at post offices has fallen from 13 million to about 4 million. Changes to the passport application procedure and the availability of car tax renewal online are other examples of the way post office business has been hit. In response, Royal Mail has sought to build up branch financial services, including a new savings account.

Colin Baker, head of the National Federation of Sub-Postmasters, is critical of the government’s approach. He points out that it is spending pounds 150m a year supporting the rural post office network while threatening the viability of thousands of branches by taking away vital work.

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