Bank “poll tax” on elderly warning

The end of free banking will cost elderly residents of Tyneside dearly when they are forced to open bank accounts to receive their state pension, warns a leading Liberal Democrat Councillor in Gateshead.

The Government’s decision to phase out the Post Office Card Account will create difficulties for the five million pensioners who have chosen to receive their pensions via the Post Office rather than a bank account, which they will now be forced to use.

The decision to end the payment system is also likely to lead to the closure of thousands of Post Office branches.

Dr Jonathan Wallace, Councillor for Whickham South and Sunniside, has warned constituents in his monthly email newsletter that the decision by First Direct Bank to end free banking for those with less than £1500 in their current account will result in a bank poll tax for the elderly.

“Millions of pensioners chose to receive their pension via the Post Office rather than open a bank account,” said Dr Wallace.

“The government’s decision will force them to open bank accounts to get their pension but many will not have £1500 to keep in the bank to avoid charges.

“The Government must think again about ending the Post Office Card Account.”