SECRETARY OF STATE FORCED TO ADMIT DISTRESS CAUSED BY POST OFFICE ACCOUNTS ABOLITION

12.00.00am UTC (GMT +0000) Sat 3rd Jun 2006

Member of Work and Pensions Select Committee Greg Mulholland MP forced the Secretary of State for Work and Pensions into an embarrassing admission today that distress and anxiety had been caused by the announcement that the Post Office Card Accounts scheme was being abolished in 2010, before any alternative schemes had even been proposed.

Heavily criticizing the way in which the Department for Work and Pensions had handled the announcement, Mr Mulholland pressed John Hutton as to why this had happened even though his own Parliamentary Under-Secretary told Parliament in March that "clearly some people will still need a product like a Post Office Card Account".

Commenting Greg said:

"The way in which the Government has pulled the rug away from Post Offices and the people who depend upon them by announcing the end of card accounts has been a disgrace and has left many people uncertain about how they will get payment in the future.

The fact that even John Hutton was forced admit that wiping out Post Office Card Accounts has resulted in untold grief and misery to those who benefited from this service shows just how badly this policy was misjudged.

It is vital that people without bank accounts get what they are entitled to, particularly the elderly. They rely upon the service provided by the Post Office and we must make sure that they are supported, not undermined in this way. As we know only too well Post Offices are vital to local communities and many people depend upon them."

Over 4 million people use the Post Office card scheme and its abolition has caused uproar amongst customers and post offices alike. Mr Mulholland pressed the Secretary of State over the 2.8 million people who Citizens Advice report are still without a bank account and whether a solution could be found via the Post Office network. Mr Hutton replied that it could and further when asked by Mr Mulholland whether there was still hope for the Post Office network stated that indeed there was.

Responding Greg has said:

"The fact that the Secretary of State admitted that alternative provision could have been provided through the Post Office network begs the question why were alternatives not worked out and a solution to these problems found before this policy was announced.

It shows complete disregard for the Post Office and for those who rely on it".