Government Won't Listen on Post Offices

12.00.00am UTC (GMT +0000) Thu 3rd Aug 2006

John Leech, Liberal Democrat MP for Manchester Withington, has criticised the Government for failing to consult with either Postwatch or the National Federation of Sub-postmasters over the decision not to renew the Post Office Card Account when the present contract expires.

In an answer to a parliamentary question from John Leech MP, the Parliamentary Under-Secretary of State for Work and Pensions admitted that there had been no consultation with either organisation about the Post Office Card Account contract.

Post Office Card Accounts were introduced when the Government scrapped pension and benefit books to allow those without bank accounts to access their pensions and benefits through Post Office branches. The Government has announced that they will not renew the contract for these accounts when the present contract runs out in 2010. This will be a big blow to Post Office branches, many of which have already closed in recent years.

John Leech MP said:

"The Government say that they want to work constructively with the Post Office in the best interests of the customers, and yet they do not even bother to consult with Postwatch or the Federation of Sub-Postmasters over such an important issue. Without the custom that the card accounts bring into our post offices, many will surely struggle to stay in business. The government should have sought the views of the Sub-Postmasters, who run our Post Office branches, and Postwatch, who represent Post Office customers, before they came to this decision. It is typical of New Labour's 'we know best' approach to Government."

Ends

Notes to Editors:

Extract from Hansard, 25th July, 2006:

John Leech (Manchester, Withington, Liberal Democrat):

To ask the Secretary of State for Work and Pensions what consultations took place with (a) Royal Mail, (b) Postwatch and (c) the National Federation of Sub-Postmasters before the Government announced that the post office card account contract would not be renewed after 2010.

James Plaskitt (Parliamentary Under-Secretary, Department for Work and Pensions):

The post office card account contract is a finite contract, which ends in March 2010. There was never any expectation that it would be renewed.

We have been discussing our wider payments strategy with Post Office Ltd. since the summer of 2005. Our aim is to help them retain as much business as possible. The first meeting was instigated by David Mills, the former Chief Executive of Post Office Ltd. The meetings have covered a number of issues, including the DWP pilots which ran from mid-February to mid-March. We continue to have regular meetings with Post Office Ltd. at official level and, where appropriate, Ministers will also meet them. It is important that the Government and Post Office Ltd. work constructively together in the best interests of our joint customers.

DWP officials have met with Postwatch and the National Federation of Sub-postmasters a number of times in the past to discuss the direct payment of benefits and pensions and will continue to meet them in the future. We did not undertake any specific consultation with either about the post office card account contract. The Government will fulfil their contractual obligations and continue to provide funding for the post office card account until March 2010 as always planned.