'PEOPLE'S BANK' SENT PACKING

[TrueBlueTerrier]

EXCLUSIVE: Labour's cheap loans plan axed

Ministers will this week ditch plans to turn post offices into a "people's bank" offering cheap loans.

Postal Affairs Minister Ed Davey will drop Labour's idea to help those struggling to get affordable credit when he unveils his blueprint for the network on Tuesday.

He will pledge to protect the network of 11,000 branches from future closures by making post offices "one-stop shops" for all government services. Computers will be installed to let people go online and access everything from buying a road tax disc to help with benefits and bills.

But critics warned last night that the plan would make post offices "glorified internet cafés".

A senior Labour source said: "It looks like the Government is dropping the idea of getting the Post Office to offer people badly-needed access to cheaper loans.

"Their plan seems to involve little more than turning post offices into glorified internet cafés. That's not much of a strategy."

Labour also fears the plan would see the end of a crucial deal with Royal Mail which guarantees cash every year to local branches.

The National Federation of Postmasters and Shadow Business Secretary John Denham have already warned the network will struggle to survive without that.

In another blow, the Post Office is close to losing a contract worth £75million over five years to distribute welfare payments.

Mr Davey is expected to back a scheme called Post Office Essentials where services are provided in a supermarket, church hall or community centre.


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[PostieWithTheMostie!]

Just shows you why this Country, Government present and recently Labour plus our own RM are in such a dire state... A people's Bank @ the Post Office would rake in an unbelievable amount of Profit, but no! some how it isn't viable - it's nearly as strange as selling competitors mail at a loss..! Does anyone of these pen-pushing idiots know how to make Profit when a good idea is sitting right in front of them?????

[BELIAL]

They know how to make a profit alright , they just don't want to share it with the people who put the work in

[PostieWithTheMostie!]

Yes but how quick would the Pension Deficit we gone if the Post Bank was created along with raising DSA..

[BELIAL]

But if you get rid of the pension deficit you lose a big stick for beating down pay and conditions. And if you set up an ethical bank how on earth are Barclays and RBS going to compete, it would have been nigh on impossible for them to have made this years 50% pay increase awards for a start