Council call to save Post Offices

LIBERAL Democrats on Gateshead Council are to move a motion calling on the government to scrap plans to end the Post Office card account.

The motion will be moved at the council meeting due to be held at 2.30pm on Thursday 23rd March.

The card account is used by nearly five million pensioners each week to collect their pensions through their local Post Office branch.

Now the government are to require pensioners to receive their state pensions through the big banks. And there are fears that the loss of business to the Post Office will see thousands of branches close.

“The card account has been very successful,” said Councillor Jonathan Wallace. “It has kept many Post Office branches afloat whilst making it easier for elderly people to collect their pension.

“With the loss of the fee Post Office branches are paid for handling the card accounts, and the loss of passing trade from many pensioners visiting the Post Office to collect their pension, many branches will simply close down.

“Many communities currently have Post Offices though there are fewer than there was three or four years ago. But many communities don’t have bank branches.

“For many residents that means using an expensive cash machine in a local shop, often at £1.50 a time. That’s a big chunk out of a pensioner’s income.

“There is no particular saving to the tax payer by ending card accounts as the big banks will be paid by the government to handle pensioners’ money instead.

“Some pensioners will face an added problem as many don’t have bank accounts. The banks themselves often refuse to take on people on low income as customers.

“Our motion calls on the government to reverse its decision, to keep the card account and to keep open Post Office branches.”