Post Office Card Account Contract Must Be Renewed - Liberal Democrats

11.32.18am BST (GMT +0100) Fri 13th Oct 2006

New figures show that half a million Scots - many of them pensioners - will lose an accessible method of receiving their benefits when a key Post Office scheme is ended by the Government.

The statistics, uncovered by the Liberal Democrats, reveal the extent of the disruption that will be caused by plans to withdraw the Post Office Card Account in 2010.

Commenting, Liberal Democrat Work and Pensions Spokesperson, Danny Alexander MP said:

"These figures highlight the importance of the Post Office Card Account to the Scottish people, significant numbers of whom clearly value their Post Office service enough to open an account.

"This is all the more remarkable given the significant hurdles the Government has placed in their way. Scrapping the scheme so soon after its introduction is simply indefensible.

"Post Offices provide a vital service, particularly in rural communities. By removing such a critical revenue stream from them, the Government has condemned many to closure."

Liberal Democrat Shadow Secretary of State for Scotland, Jo Swinson MP, added:

"The Post Office Card Account service is used most widely in deprived areas, and the figures show that almost half a million Scots would lose this accessible and affordable way of receiving their benefits.

"This includes almost 200,000 pensioners, many of them vulnerable, who will have to change the way they receive state support.

"It is also extremely bad news for Post Offices in deprived areas, where the Government should be trying hardest to create a sense of community.

"This unacceptable move from the Government is bad news for Post Offices and bad news for those on benefits, and serves to demonstrate how entirely out of touch this Government is with local communities."

ENDS

Notes to Editors:

1. The Post Office Card Account was introduced when pension and benefits books were withdrawn in 2002.

2. The figures show that 495,980 people in Scotland use a Post Office Card Account, of whom 187,990 are pensioners. A full breakdown of the number of card accounts by constituency is attached.