Sponsored by
Post office cuts would hit poor and elderly hardest, say MPs
FEARS for the future of thousands more post offices are mounting – and today MPs warn that elderly people and rural communities will be worst hit if the Post Office loses a vital Government contract.
Awarding the contract for the Post Office card account (POCA), which processes benefit and pension payments, to a rival bidder could lead to the closure of between 3,000 and 6,000 branches according to subpostmasters and MPs, throwing the future of hundreds of branches in Yorkshire into doubt.
Today a committee of MPs says rural and poor areas would bear the brunt of the impact, warning that uncertainty over the future of the contract is "destabilising" for both the Post Office network and rural communities for whom their local branch is a lifeline and saying it is "disturbed" the Government has allowed speculation to continue.
Cross-party MPs also voiced their concerns last night along with the Commission for Rural Communities which said it had already raised its fears about the "damaging impact" of the move with the Government.
Communities across Yorkshire are already seeing dozens of branches close this year as part of loss-cutting moves that will see 2,500 shut across the country.
The deal for the existing card account – which allows people without bank accounts to withdraw pensions and benefits – runs out next April and it is the tendering of the contract for the replacement that is causing concern.
Last week in the Commons the Liberal Democrats called for answers about rumours the deal is to be given to PayPoint. Earlier this year 265 MPs backed a motion by Barnsley's Michael Clapham calling for the Post Office to be awarded the contract.
The Department for Work and Pensions (DWP) insists no decision has yet been made.
If the Post Office does lose the account the National Federation of SubPostmasters has warned it would lead to the "unmanaged" closure of at least 3,000 post offices and last week John McFall, Labour chairman of the Treasury select committee, said he feared up to 6,000 could close. Today the Commons Business Select Committee says there would be "grave effects" on the post office network, adding: "Even after the network change programme more sub-post offices would almost certainly close."
The committee warns that the account primarily caters for the elderly and poor in rural or deprived urban areas who do not have a car or cannot afford public transport, and says the contract should not be awarded to a rival which offers more outlets but only in urban or densely populated areas.
It also warns against relying on free Link cash machines, saying they are often in rural neighbour-hoods and cannot be guaranteed to be full of cash at all times.
"We are... concerned about the effects of the possible loss of the contract on Post Office Ltd, and, indirectly, on the taxpayer who may end up having to pay an increased subsidy to maintain a national network of post offices, while simultaneously supporting the commercial providers of the DWP card account," the committee says.
Commission for Rural Communities senior policy adviser Malcolm Craig said he was concerned about the delay in ann-ouncing the future of the account.
"This is causing further uncertainty for local Post Offices and customers," he said. "Together with other stakeholders, we wrote to the Government earlier this year about the damaging impact on rural communities if the Post Office and its network lose the card account contract.
"POCA is particularly important for rural residents and those without bank accounts who otherwise would have to travel further to access their benefits, state pensions and tax credit payments."
Liberal Democrat business spokesman John Thurso said giving the contract to a different bidder would be "the final nail in the coffin for local post offices" and "a slap in the face" for all the people fighting to save them.
The DWP said: "The contracting process remains under way. No decision has yet been made and an announcement on the outcome will be made as soon as possible."
Email to a friend
Print this page- Video: Deadline Day Live (the final hours)
- Leeds United close in on late transfer window signing
- Gary Speed sent suicide text to wife - but coroner says he may have ‘nodded off’ with noose around neck
- Have your say: Who should succeed Simon Grayson at Leeds United?
- Grayson sheds a tear over Leeds departure: First reaction to sacking
- Gingrich tipped for Florida battering
- £50bn ‘Boris Island’ airport plans step closer
- Tributes to father as Children in Need comedy act turns to tragedy
- Doncaster Rovers 0 Cardiff City 0: Rovers are united in common survival cause, says Coppinger
- Leeds refuse to be rushed into naming Grayson replacement
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Yorkshire
Saturday 04 February 2012
Today
Light snow
Temperature: -1 C to 1 C
Wind Speed: 20 mph
Wind direction: South
Tomorrow
Sunny spells
Temperature: -1 C to 5 C
Wind Speed: 9 mph
Wind direction: West
