Post office card account shake-up

Adam Hewitt • Published 3 Sep 2008 12:00 0 Comments

REFORMING a key post office service could save branches from closure, says a parliamentary candidate.

Reading West Tory Parliamentary hopeful Alok Sharma said the post office card account (POCA), used by four million people as an easy-to-use alternative to a bank account, should be able to handle direct debits to help poorer families get cheaper utility bills.

The POCA service used to be run by Post Office Ltd but the contract has now been put out to tender, with other bidders competing for the right to run the so-called ‘POCA 2' service which will replace the current account.

A Government decision on who will run the service was expected in the summer but has been delayed.

Mr Sharma says allowing POCA customers to make direct debit payments could save them £100 a year on energy bills alone, and added: "It is totally unfair that many of the poorest households across Reading end up paying more for their energy and water bills because they do not have bank accounts and cannot pay by direct debit. I am delighted that these Conservative plans will also bring in additional revenue for Post Offices."

Mahesh Patel at Whitley Wood post office is Reading secretary of the National Federation of SubPostmasters and said: "If we lose the card account, lots more post offices will just disappear. I totally rely on it."

Reading West MP Martin Salter said in July: "While I welcome the Government's commitment of £1.7bn up to 2011 to help keep post offices open, this needs to be accompanied by measures to shore up the viability of post offices, the most crucial of which is POCA."

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This article appeared in Reading Chronicle 04 Sep 08

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