News Date: Thursday 9th February 2006
Tim supports Post Office in campaign against Government plans
Government plans for the abolition of the Post Office Card Account (POCA) have come in for strong criticism from the National Federation of Subpostmasters and Tim has added his voice to calls for an urgent reversal of policy.
The National Federation of Subpostmasters have reported that starting this month, in areas running pilot schemes, new benefit claimants will not be able to open POCAs, existing POCA users will have to register their bank or building society details with the Department of Work and Pensions and existing POCA customers who have who have already registered their details will find their money paid into their bank account rather than their POCA.
Tim commented:
"We warned at the time Post Office books were being phased out that the Government had a secret agenda and this has now blatantly come to light. This will have very damaging effects on many of my constituents who do not have access to a bank account, especially as lack of potential profit means that banks shy away from providing those on benefits with a bank account. The Government should tackle this problem before they go about forcing the frail to embark on opening an account which is often unfeasible. The Government should also recognise the difficulties that people may face regarding mobility and transportation to the bank or building society in question.
"Local post offices are closing at an alarming rate and if these plans are rolled out across the country the loss of the POCA contract will cost the Post Office around ?1 billion and the number of vital local post offices will dwindle even further."
?, Tim Loughton MP , 2006
