MPs calling for Post Office safeguards

9:15am Monday 13th October 2008

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Bradford MPs have urged the Government to award a key benefits contract to the Post Office to prevent further branch closures in the district.

Three MPs have insisted that allowing the Post Office to operate the successor to the Post Office Card Account (POCA) is “essential to the viability of the Post Office network” following the controversial closure programme that has led to the loss of dozens of sub post offices in West Yorkshire.

The POCA is used by four million people nationally as a way of receiving benefits and pensions. It cannot be used in other banks or shops. The account earns the Post Office £200 million each year.

The Government is expected to announce its decision on which company will operate the successor product to the POCA from 2010 in the next few weeks.

Billy Hayes, head of postal workers’ union CWU, has warned the Government 3,000 post offices could shut if the Post Office loses the contract.

Bradford West MP Marsha Singh, Keighley MP Ann Cryer and Shipley MP Philip Davies have all signed a Parliamentary motion that states: “The Post Office is best placed to provide this service because of its unrivalled geographical reach, its status as a trusted brand and its ability to offer customers a seamless transition. Retaining the successor of the POCA as a Post Office product is essential to the viability of the Post Office network following the Network Change Programme.”

Ministers have said the decision must be taken on commercial grounds.

A Department for Business spokeswoman said: “European Union rules required the Department for Work and Pensions (DWP) to tender for the successor to the Post Office Card Account. This process is now under way and it would be inappropriate for us to speculate on the outcome without being seen to prejudice the procurement process. DWP expects to announce the successful bidder later this year.

“However, whatever the outcome, the Government remains strongly committed to a sustainable and nationwide Post Office network, on the back of the £1.7bn funding package and access criteria that were announced last year.”