LOCAL MP WARNS OF THREAT TO 18,000 STOCKPORT CARD HOLDERS

2.21.00pm GMT Tue 11th Nov 2008

Thousands of Stockport residents could lose their card accounts and up to a dozen more local Post Offices close if Government plans to scrap the Post Office Card Account go ahead, local MP Andrew Stunell has warned Parliament.

Mr Stunell told Parliament on Monday that it was vital that the Card Account stayed with the Post Office.

He was speaking in a debate called by the Liberal Democrats aimed at forcing a re-think on Ministers, who are believed to be ready to hand the Card Account - used for paying pensions and benefits to over 4 million people - to the US-based Citibank.

The existing Post Office Card Account (POCA) is a big money-earner for Post Offices, as well as offering a unique service to card holders, many of whom do not have bank accounts, and value its 'instant cash' access to their pensions.

Mr Stunell told Parliament that there are currently 18,000 card account users across Stockport, with 5,000 in his own Hazel Grove constituency. Many would not be eligible for a full bank account, or have mobility problems that made access difficult.

"The loss of the POCA service would cost local Post Offices dearly - equivalent to a 50% increase in their business rate. Across the country it would lead to 3,000 more closures, on top of what has already happened this year."

The Liberal Democrats have called on government departments to make more services available through the Post Office, such as car tax and TV licenses, to help keep remaining branches open and profitable to run.

"We've lost eleven Post Offices in six years in my constituency. There are only nine left, and we could easily lose another four if POCA is switched to Citibank" continued Mr Stunell.

The Commons debate came on the day a leaked letter came to light from Labour Minister Peter Mandelson, urging the Government to do more to support the Post Office network by letting it provide government services and financial products.

"That is exactly what Liberal Democrats are saying. Many MPs in all parties support the battle to keep POCA, and safeguard the local Post Office network. The Government's majority was slashed to just 38 in the vote at the end of the debate, showing just how out of step they are."

ENDS