ONLY 1 IN 10 POST OFFICE CARD ACCOUNT APPLICATIONS PROCESSED

12.00.00am BST (GMT +0100) Wed 16th Jul 2003

New Government figures show that only 13% of the 430,000 applications for Post Office Card Accounts have been opened by 20 June 2003.

Vincent Cable MP, Liberal Democrat Shadow DTI Secretary, lambasted the Government for the poor rate of Post Office Card Accounts which have been opened to date.

The Trade & Industry Select Committee finalise their report on Direct Payment at Post Offices for publication on Thursday.

Mr. Cable said: "It is clear that the over-complicated application process, designed by the Department of Work and Pensions, is utterly defeating people."

"This is not about an unexpected rush of applications in the last few weeks. As early as February some 78,000 applications had been received - only two thirds of that number that have been processed 4 months later."

"There is a very imminent danger that the difficulties with the Post Office Card Account will drive away customers from local post offices, leaving the post office network hanging by a thread."

"The Government has arrogantly dismissed the problems surrounding the new Post Office Card Account. The message is now clear. Simplify the application process now or the Post Office network may not survive."

ENDS -

Notes to Editors

From DTI Questions, House of Commons, Official Report, 3 July Column 526

The Minister for Energy, E-Commerce and Postal Services (Mr. Stephen Timms): I understand from Post Office Ltd. that, by 20 June 2003, 57,000 Post Office card accounts had been opened. By that date, 430,000 people had indicated that they wanted to open a card account, so the number of accounts opened will grow rapidly in the period ahead.

The DWP confirmed in March that 78,000 applications for PO Card Accounts had been received. 4 months later, they have only opened less than half of that number.

24 Mar 2003 : Column 98W

Malcolm Wicks: As at 21 February 2003, a total of 77,648 customers have requested a Post Office card account.

Trade & Industry Select Committee evidence, given by David Mills the Post Office Chief Exec that DWP developed the process for application. Q164 Mrs Lawrence: You mentioned that you are concentrating on bank accounts and banking services. Many of the witnesses that we have spoken to before today have mentioned that they cannot see any reason why the Post Office card account should be so complex compared to an ordinary bank account. Can we take it then that the complications are not as a result of Post Office procedures? Mr Mills: The whole process has been devised by the DWP.