The Government announced today that it would keep the Post Office Card Account after a protracted bidding process. The news follows a Liberal Democrat Opposition Day debate in Parliament on Monday, on the issue of the Post Office Account Card.
Commenting on the news local MP Nick Harvey, said: "This news will come as a huge relief to the people in North Devon who are dependent on the Post Office Account Card for their pensions and benefits.
"However, the process was carried out in the long, drawn out manner which far too often typifies the Government's approach to these issues.
"A lot of heartache and time could have been saved if the Government had not tried to mend what didn't need fixing."
The Post Office had faced competition from PayPal, a private company, who sought to take over the running of the account, despite warnings that 3,000 post offices would be at risk of closure if the account was lost.
Over four million people are dependent on the account for the distribution of their benefits and pensions, which enables them to use their local Post Offices and dispense with giros and payment slips.
The account is particularly useful for those who live in rural areas and are unable to get to banks to claim their benefits.
Notes to Editors: The motion for Monday's opposition day debate on Post Office Card Accounts stated:
That this House notes with concern the fact that the Department for Work and Pensions has written to Post Office card account holders informing them that the Post Office card account contract ends in 2010; further notes that Post Office card account holders, many of whom have made a conscious decision to support the Post Office by retaining their card account, are being instructed to take out bank accounts in order to receive benefits beyond 2010; expresses its dismay at the fact that the letter does not mention the fact that a replacement for the current card account is currently out to tender, or make any mention of other Post Office products or services; believes that this is a deliberate attempt to encourage people to switch payment to direct debit and remove the role of the Post Office; notes the additional damage inflicted on the Post Office by the Driver and Vehicle Licensing Agency, who are currently sending out licence renewal reminders as part of a communications campaign which makes no mention of the Post Office; calls on Ministers in the Department for Business, Enterprise and Regulatory Reform to encourage Ministers in the Department for Work and Pensions to consider the impact on communities across the country if the Post Office card account is not renewed; and encourages all Government departments to make their services available through post offices in order to ensure that they have a viable future.
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