Scrapping Pension Book Means 3,000 Fewer Customers for Mid Dorset's Post Offices, says Annette Brooke

12.00.00am GMT Wed 10th Dec 2003

Annette Brooke MP for Mid Dorset and North Poole has revealed new figures showing that post offices will lose up to 3,000 customers, as pensioners will in future collect their entitlement at banks and building societies.

The figures have been produced by the independent House of Commons library. Post Offices receive a fee for processing payments, including pensions and benefits, so the Government's plan to scrap the pension book will result in a massive loss of revenue for the whole network. The exodus will mean post offices are robbed of vital income, and risk closing if their business becomes unviable.

Annette Brooke MP said:

"I have presented to Downing Street signatures from residents of Wareham and Bere Regis who are concerned about local post office closures. In north Poole, Hillbourne post office has already closed and West Howe post office is now under threat of closure. My constituents are concerned, and rightly so."

"The government's plans will rob the post office network of vital revenue and will accelerate the rate of closures. Many of the pensioners who want to stick with the post office could be met with a permanent 'closed' sign."

"Millions of pensioners have chosen to have a pension book. The Government is telling them to think again. Heavy handed tactics will create a mass exodus of pensioners out of the post office."

The Government is writing to all pensioners and benefit claimants who pick up their money at the post office and telling them to choose one of three 'direct payment' options. The figures show that, nationwide, up to 10 million people who get their money at the post office, including 2,850,000 pension book users, will in future get their money from a bank or building society.