Consignia's Universal Bank Opens April 2003

The Post Office-based Universal Bank will be open for business in April 2003 even though the executive in charge, Basil Larkins, has resigned, the Department of Trade and Industry insisted yesterday. Mr Larkins resigned in May for personal reasons, but insiders insist that the Universal Bank is still on track and will be operational when the Government changes the way it pays benefits next April. At that point, all benefits must be paid directly into a bank account, and those claimants who wish to continue to use the Post Office must open a new card account with its Universal Bank. Only benefits and state pension payments can be deposited in the accounts, while withdrawals can only be made in cash at a post office counter. The Universal Bank will offer two types of accounts. The Post Office Card Account will be funded by the Government, and is expected to be limited to just 2m customers. It will also offer basic bank accounts branded and run by high street banks, which will cost the Government nothing. The majority of Britain’s 15m benefits claimants are expected to be encouraged to sign up for these. Mr Larkins was widely regarded as the architect of the Universal Bank, and was in the process of selecting software for the system when he resigned. It is understood the decision on the software has yet to be made. Mr Larkins’ responsibilities have been assumed by David Mills, a 40-year veteran with HSBC, who was appointed chief executive of Post Office Limited in April.