Post Office Card Account

Simon Wright Excerpts

Tuesday 16th December 2014 Commons Chamber

[Steve Webb]

The hon. Gentleman makes an important point. We are testing and trialling approaches to try to work out which sorts of accounts are most suitable for which people. It is important to understand the revolution that universal credit will bring in, because people will get the whole of their benefits—tax credits, and potentially help with housing—and they will have to budget from that one relatively large sum. An awful lot of work is going on to trial which sorts of accounts work best for which sorts of people, but over the coming years we will clearly contact people of working age to indicate to them the merits of a transactional bank account.

[Simon Wright (Norwich South) (LD)]

Malcolm Fuller, the sub-postmaster of Eaton post office in my constituency, will step down from his role in the new year after decades of service to the local community. How will today’s announcement support initiatives to encourage new sub-postmasters to come forward, and to encourage existing businesses to deliver post office services in their communities?

[Steve Webb]

My hon. Friend is a doughty campaigner for the more than 5,000 POCA holders in his constituency. He is right that one reason why we are delighted to make the announcement is that sub-postmasters have told us they want an end to the uncertainty. For example, if they were selling a business, the person thinking of buying it needed to be confident that the business had a long-term future. We believe that the seven-year horizon gives sub-postmasters that confidence. We hope that it may unblock some sales, and enable new people who are prepared to move on to the next generation of services to plan for the future. Crucially, to respond to my hon. Friend’s question, it will give post offices the breathing space in which to do that, which they lacked in the past.