Concern over Post Office card account decision delay

[TrueBlueTerrier]

http://www.24dash.com/news/Communities/ ... sion-delay

The delay in making a decision on the Post Office card account (POCA) is causing major uncertainty to sub-postmasters and customers, ministers were told today.

Pensioners and benefits claimants use the card to collect their money and it is a valuable source of customers for many post offices.

Tory business spokesman Jonathan Djanogly said the Government should be "ashamed" that it has delayed announcing whether the contract with the Post Office will be renewed or if the account will go to a rival operator.

At Commons question time, he said: "Given that there are some four million users of the Post Office card account and given that this equates to some 10% of sub postmasters' net income, is the Government not slightly ashamed that it continues to delay the tender process for POCA's replacement?"

He asked Business Minister Pat McFadden: "Could you explain why the delays continue and when will the announcement be made and certainty given to customers, the Post Office and, indeed, its staff."

Mr McFadden said he was "certainly not ashamed" because of the £150 million annual subsidy given to the Post Office.

"Without that subsidy thousands more branches could be under threat because the Post Office is losing £0.5 million a day and it has lost four million customers a week in recent years."

The decision on the card account will be taken by the Department for Work and Pensions, he said.

Tory Peter Luff (Mid Worcestershire), Business and Enterprise Select Committee chairman, said: "If the Post Office card account is not awarded to Post Office limited, many more Post Offices in my constituency and around the country will face closure."

Mr McFadden said an announcement would be made when a decision had been taken.

Liberal Democrat Sir Robert Smith (Aberdeenshire W and Kincardine) said: "The Post Office has an unmatchable reach. If the card account is not given to the Post Office then our constituents will have a poorer service from whatever replaces that."

Mr McFadden said: "I appreciate your impatience and I know the House is keen to hear the results of the tendering process.

"When we have made a decision on this I assure you it will be announced in the normal and proper way."

Director general of Age Concern Gordon Lishman said: "Uncertainty about the future of POCAs will be causing concern to many of the pensioners who currently use them.

"Many of those who rely on the services their local post office provides will also be very worried that the possibility of the Post Office losing the tender for this account could potentially lead to further closures.

"Up to two million older people choose to use these accounts because they want to be able to access their money through the post office.

"This is particularly important for those in rural and deprived urban areas, where access to banks is more restricted and ATM charges are more common - which can be a big cost for the poorest pensioners.

"The needs of older people who use these accounts and the way they want to access their money must be listened to.

"We want a decision on this tender to be made as soon as possible to end the uncertainty for older customers around the country."

[Big Daz]

JD is my local MP