DWP Proposals could “Sound Death Knell” for Post Offices, Clegg Told

424px-Ian_LucasConcerns a lifeline for Post Offices across Britain could be scrapped have been raised with the Deputy Prime Minister.

Wrexham MP Ian Lucas asked Deputy prime Minister Nick Clegg if reports that a leaked Department for Work and Pensions document proposed the scrapping of the Post Office Card Account were true during today’s Prime Ministers’ Questions, where the Deputy Prime Minister was taking the place of David Cameron. Mr Clegg said he did not believe them to be correct, but promised to look further into the matter.

According to the reports, published in the Guardian newspaper, the DWP would stop paying benefits into Post Office Card Accounts – a move that would affect three million people across the country, with half of those affected being pensioners.

Mr Lucas said: “Doing this would sound the death knell for a viable Post Office network as we know it.

“Lots of people – including millions of pensioners – use the Post Office Card Account as a basic account for their money, and under these plans all these users would be hit hard.

“It would also mean millions of users – and millions of transactions – lost to the post office network each week, a change which would have a devastating effect on its viability.

“It is no surprise that these reports have set alarm bells ringing with those responsible for the Post Office network across the country. Nick Clegg needs to tell his Government these proposals should be scrapped.”

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