Card contract saves post offices (From The Argus)

Card contract saves post offices

6:50pm Thursday 13th November 2008 in News By Andy Tate, Parliamentary Correspondent

The threat of closure has been lifted from at least 50 sub-post offices in Sussex after the Government ruled Post Office Ltd could continue to operate its basic bank account.

Sub-postmasters had warned that thousands of branches across the country were at risk after ministers invited private firms to apply to take over the Post Office Card Account (POCA) which is used by almost 70,000 people in Sussex to receive their pensions and benefits.

But today Work and Pensions Secretary James Purnell announced he was cancelling the current procurement exercise and awarding the contract for the POCA to the Post Office until 2015.

Mr Purnell told the Commons that in a time of financial turbulence, the Post Office was a “trusted brand” seen as a safe and reliable provider of financial services.

The move would help ensure a “viable future” for post offices left in place after the current modernisation programme that had led to the closure of 2,500 sub-post offices across the UK, including 49 in Sussex.

The POCA was set up to help customers who cannot or do not want to use any other kind of bank account to get hold of their benefits, state pensions and tax credits. The payments can only be collected over the counter at a Post Office branch - bringing much needed business to struggling sub-postmasters.