Post Office Card Account

Debate between Liz McInnes and Steve Webb

Tuesday 16th December 2014 Commons Chamber

[Steve Webb]

I pay tribute to my hon. Friend as an officer of the all-party group on post offices and, indeed, as a persistent thorn in my side on this issue, which he recently raised at Business, Innovation and Skills questions. He has shown his commitment to post offices, and I know that his constituents will respect the work that he has done.

We have left Post Office Ltd, as a commercial organisation, the freedom to design bank accounts of the sort it feels appropriate. It has come up with a series of accounts; for example, some have a monthly charge, and others have different features. It is obviously testing the market, starting—if I remember rightly—in the east of England. That is clearly a commercial issue for it, but we are keen to make sure that a range of accounts are available to people to meet their needs.

[Liz McInnes (Heywood and Middleton) (Lab)]

Does this contract provide more income or less income for post offices?

[Steve Webb]

To be absolutely clear, the amount we pay sub-postmasters per transaction will be the same. We have protected that. The number of Post Office card accounts has been falling and will continue to fall, because older pensioners die, new pensioners have a tendency to use banks more and the working-age population generally moves towards other forms of transactional accounts. However, if someone moves to a bank transactional account that is accessed at a post office, they can still go into the post office and the post office will still get the footfall. The volume of POCAs is clearly going down, but the value that we are paying in the contract per transaction is staying the same.

bills presented

Local Planning and Housing Bill

Presentation and First Reading (Standing Order No. 57)

Sir William Cash presented a Bill to make provision for the clarification and improvement of local planning procedures; to make provision in relation to housing supply; and for connected purposes.

Bill read the First time; to be read a Second time on Friday 9 January 2015, and to be printed (Bill 139).

Off-Road Vehicles (Registration) Bill

Presentation and First Reading (Standing Order No. 57)

Mr David Ward, supported by Graham Stringer, Stephen Lloyd, John Hemming, Sir Bob Russell, Greg Mulholland and Mr Adrian Sanders, presented a Bill to make provision for the establishment of a compulsory registration scheme at the point of sale for all off-road motorcycles and quad bikes; and for connected purposes.

Bill read the First time; to be read a Second time on Friday 23 January 2015, and to be printed (Bill 140).