| Thousands more post offices at risk |
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| Monday, 12 May 2008 | |
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The Government has been urged not to remove sub postmasters' right to handle state pensions and benefits payments.
The 3,000 possible closures, revealed by the National Federation of Sub Postmasters (NFSP) represents 25 per cent of the sub post offices due to remain at the end of the current Network Change closure programme. The NFSP is urgently calling on Government to award the contract to run the new Post Office card account (POCA) to Post Office Ltd. The new contract, dubbed POCA2, will next year replace the current card account used by around four million people every week to access state pensions and benefits at the Post Office. The Government is currently deciding where to award the contract. Crucial lifeline An NPSP survey showed that card account transactions account for up to 12 per cent of subpostmasters’ pay. If lost, this could lead to as many as 3,000 sub post offices going out of business, the NFSP estimates. Of the 24 million visits made to post offices every week, 6.5 million are made by POCA customers, highlighting the importance of the POCA contract to subpostmasters. George Thomson, general secretary of the NFSP, explained that the Post Office card account is a crucial lifeline to thousands of subpostmasters already struggling to keep their businesses going. He warned that if the Government chooses not to award the POCA2 contract to the Post Office, up to 25 per cent of those post offices remaining open will be forced to close. “Furthermore, the on-going Network Change closure programme will fail if the 11,500 or so post offices which remain are not properly supported in the future. The Government must therefore demonstrate that support by awarding the successor to the Post Office card account to the Post Office. Not to do so would be catastrophic," Thomson added. Contract put out to tender He warned that retaining the contract for POCA2 would not be a cure-all for the many challenges faced by the post office network. "It will, however, provide the Post Office with breathing space to deliver the new products and services required to ensure that the new post office network is given the best possible chance to survive and thrive in the future," he said. The Department of Work and Pensions announced in 2006 that it planned to axe the POCA in 2010. Following a major campaign by the NFSP, which led to a petition of four million names being handed to Downing Street in October 2006, the Government decided to introduce a successor to POCA. The contract to run the new card account was put out to tender in line with EU regulations. The deadline for tenders ended in March this year and a decision on who has won the contract is expected by mid-summer. Related articles Related links |
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