Post Office counters slump via bank plan

The Government will today announce a "major expansion" of financial services offered by the Post Office under moves aimed at making the 11,500-strong branch network more sustainable.

Launching the development today, Business Secretary Lord Mandelson said the new measures including new accounts and business services had previously been likened to creating a Post Office Bank.

A coalition of groups including the Communication Workers Union, Federation of Small Businesses and National Pensioners Convention have been pressing ministers to support a Post Office Bank.

Hide Ad
Hide Ad

Lord Mandelson said today's announcement will be a core part of Labour's election manifesto. "Since the global banking crisis we have set about reinventing the financial services industry piece-by-piece, building a system that is fairer, trusted and more responsible.

"Today is the next step in that process. The Post Office is a well-loved community institution and this move will bring more banking services back to the heart of those communities."

Business Minister Pat McFadden will say: "The Post Office can provide a range of good value, simple financial products for everyone. These are the clear messages that people have given us and we are acting on them – a major step towards making the Post Office a sustainable neighbourhood banking service."

Ministers said the measures announced today marked a "step change" in banking at the Post Office and demonstrated the Government's continuing commitment to the Post Office network.

Hide Ad
Hide Ad

They include a weekly budgeting account to help people on low incomes manage their household budgets and save money by taking advantage of discounts for using direct debit to pay their utility bills; a children's savings account to be launched in the next 12 months, and a Post Office Current Account, which will be accessible from any Post Office in the country.

Negotiations are taking place with RBS and Santander to give access to their current accounts.

Related topics: