More Support for Post Offices

Labour’s Secretary of State for Work and Pensions, James Purnell, has announced that the Post Office has been awarded the contract to continue providing the Post Office Card Account (POCA).

The Labour Government has taken the decision to help secure a viable Post Office network by awarding the five-year contract directly to the Post Office. Four million people, including two million pensioners, will be able to continue to use their account to access benefits over the counter at local branches.

At a time when people are feeling anxious about the economy, this move will ensure that people are able to access benefits in a familiar way and guarantee an important source of income for post offices.

The Labour Government has also announces a £1.7bn subsidy to help maintain the post office network and keep branches open in the right places

Labour’s Secretary of State for Work and Pensions James Purnell said:

"I firmly believe that this is the right decision for our customers, the Post Office and sub-postmasters.

"The Post Office is a cherished national institution at the heart of many communities. The card account is an important source of income, and brings customers through the doors of Post Offices across the country.

"Global economic events have made people, particularly the most vulnerable in our society, more concerned about financial transactions. The Post Office is a trusted brand, and is seen as a safe, secure and reliable provider of services in these turbulent times.

"Now is not the time for the Government to do anything to put the network at risk, particularly as Post Offices are often the only providers of financial services in remote areas."

Labour’s Business Secretary Peter Mandelson said:

"The Post Office is a trusted and familiar brand for those using the Post Office Card Account and today's decision helps secure its future. Now the challenge will be for the Post Office to broaden its offer to loyal customers and to bring in new ones to help get it on to a stable financial footing. There is the potential to leverage its brand to help it expand further into areas like financial services, particularly in the current financial climate, where people value trust and certainty more than ever."

Labour’s Minister for Postal Affairs, Pat McFadden, said:

"This announcement is great news for the Post Office. The Post Office network has been through a difficult year, with some branches having to close, but that process is now coming to an end. Today's announcement recognises that the Post Office is a valuable national asset. With the card account secured and with the Government's £150m annual subsidy to support the Post Office, the network can now look forward to more stability."