East Falkirk MP fights plans to do away with Post Office card accounts

Mr Day said people who started receiving the state pension or benefits from May 2020 onward have now been barred from using a Post Office card account to collect their money.

This leaves an estimated 900,000 existing users who still get pensions and benefits paid into their Post Office card accounts until the November 2021 – when the government contract runs out.

Mr Day said the UK Government previously stated allowing people to use Post Office accounts to withdraw state pensions and benefits is “poor value for taxpayers”.

However, according to Mr Day, Post Office accounts have remained popular among many users who are reassured by the lack of overdraft facility or charges, which makes it impossible to get into debt, or who fear bank system crashes will block access to their money.

The UK Government says when its contract with the Post Office runs out in November 2021, people still using the card account will either have to get their pension and benefits paid to a standard bank account, or a replacement service will be put in place.

Mr Day, who tabled a question about the situation in the House of Commons, said: “The reality is vulnerable people are at risk from the closure of the scheme and the lack of clarity over the Post Office government subsidy.

Some 1.23 million people don’t have bank accounts and I wanted to clarify with the government how the most vulnerable customers will access their benefits once the government has closed the scheme.

“No reassurance was given from the government, as Minister Opperman merely reiterated those with building society or credit union accounts would be able to access their accounts.

“It shouldn’t be forgotten official UK government figures only recognise 30,000 vulnerable people around the UK – having only contacted this number to offer them a delivery service of cash over the COVID-19 period.

“However, recent National Federation of SubPostmasters (NFSP) research, has shown, on average, subpostmasters and their staff ‘keep an eye on’ 25 potentially vulnerable people, meaning post offices may act as an informal and unpaid support mechanism for around 300,000 vulnerable people.

“It is also worth highlighting the fact many of these vulnerable people are able to function because of our Post Office network. The same research shows that 88 per cent guide vulnerable customers through banking or bill payment transactions every day or most days of the week and 93 per cent of subpostmasters described their post office as a safe place for local people if they need help or feel threatened.

“Many post offices are under threat because the Post Office subsidy has not yet been renewed. Considering the vital role that post offices play continuing the subsidy payment should be a priority for Government.”