Post Office Card Account

Justin Tomlinson Excerpts

Tuesday 16th December 2014 Commons Chamber

[Steve Webb]

Post Office Ltd is coming up with a range of accounts, some of which have monthly charges and other different features. The basic bank accounts of the largest nine clearing banks, among others, are all Post Office-accessible. The key thing is that Post Office Ltd is a business that can develop accounts of different sorts, as it is now doing—perhaps it has taken a bit longer than we might have wished—and customers can choose between them. For us, the crucial thing is that people will, if they wish, be able to get their cash at the post office, whether from a POCA, a basic bank account or a Post Office account.

[Justin Tomlinson (North Swindon) (Con)]

This announcement is vital for customers in our local post office network. The previous Labour Government presided over more than 6,000 post office closures. Labour MP after Labour MP queued up to have their photograph taken before coming down to Parliament to vote to close those post offices. To what extent will this announcement protect our existing network?

[Steve Webb]

My hon. Friend is absolutely right. There has been a sea change. Of course, nobody notices something that does not happen. For the past four years, we have not seen these mass organised closures. It was not just attrition, but at least two rounds of organised post office closures. This Government, despite difficult financial situations, have made it a priority to address that. Not only have we have invested in upgrading the network, but the post office local model means that people will be able access their cash on a Sunday morning if the shop is open, and that will be good for business. This is a seven-year contract, so it covers a very long period. The intention is to give the post office network breathing space to develop new products for the longer term.