POST OFFICE SPECIAL 1

RED CARD FOR ACCOUNT HOLDERS

16-10-2006

Confusion and inconvenience are on the way for thousands of people across the West Midlands who use Post Office card accounts which are due to be scrapped.

Figures obtained by the Liberal Democrats show that in Birmingham alone, up to 90,000 pensioners and benefit claimants use the accounts to access their cash over the counter.

The government wants them all to use banks instead, and has set a deadline of 2010 for the new system to be introduced.Later this week, a three million-signature petition is due to be presented to Downing Street calling for the plan to be abandoned.

A vast range of organisations and individuals is calling for a re-think. Among them are Age Concernthe Womens' Institute, and WW2 Forces Sweetheart Dame Vera Lynn.

The National Federation Of Sub-Postmasters regards regular visits by card account holders as essential to keeping their ailing businesses going, as it brings customers though the door.

Ruralpost offices, which in 75% of cases lose money, are particularly threatened by the plan butit could lead to further closuresin urban areaswhich have already been hard hit by "rationalisation".

So far 3,500 post offices nationally have been shut since Labour came to power in 1997.

The government admits that it doesn't know how many account card holders use the system to withdraw their entitlements, but the Lib dems have discovered that there are more than 91,000 claimants in Birmingham who all have the right to to do so at present - and more than 430,000 in the West Midlands.

The Liberal Democrat MP for Yardley John Hemming who has been campaigning on the issue commented:

"It is astonishing that the Government seems intent on destroying a service which is of such great value to so many people across the city, and to approaching half a million people in the West Midlands. The post office card account offers an accessible and affordable way for thousands of people in the area to receive their benefits, yet the Government is proposing to axe it.

“Some people cannot handle PIN numbers. What is the government going to do for them?