Post Office Card Account

Sheila Gilmore Excerpts

Tuesday 16th December 2014 Commons Chamber

[Steve Webb]

I am grateful for the work that my hon. Friend has done on this. As she will recall, we met to discuss how we could deliver this contract when she was postal services Minister. About 4,000 people in her Cardiff constituency currently have Post Office card accounts, and they will welcome this announcement. She is right that we have to work out how we can develop and expand this in future. We are trying to make sure that we have the right accounts for the right people. The number of pensioners with these accounts will gradually decline. For people of working age, we want, where possible, financial inclusion and transactional accounts. Many people with POCAs do have other bank accounts—for various reasons, they hold both—but we will make sure that the most vulnerable people have access to their money at the post office.

[Sheila Gilmore (Edinburgh East) (Lab)]

I am sure that it will be a great relief to many people running post offices to know that the contract is going to be extended in this way, because there was uncertainty for some time. On being able to move from the Post Office card account to a basic bank account, I understand what the Minister said about credit checks, but would it not be possible for the Post Office to establish a basic bank account to which people could migrate, because that might speed up the movement of people into proper transactional bank accounts?

[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.