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Search forHope for Derbyshire's post offices after they retain crucial contract
Friday, November 14, 2008, 07:30
Work and Pensions Secretary James Purnell yesterday announced, to MPs' cheers at Westminster, that ministers were ditching plans to launch a competitive tender for the Post Office Card Account.
Many of Derbyshire's branch managers had feared they would face closure if the contract to run the account, through which people receive benefits, pensions and tax credits, was not extended past 2010.
But the Post Office will now continue to run the system until 2015, with the possibility of a further extension.
The news comes 10 months after the Post Office closed 35 of its Derbyshire branches after making national losses of £3m a week in 2006.
Postmistress at Cromford Post Office Carol Easton said it was fantastic news which gave her "real hope for the future."
She said: "If the contract had not been renewed, I think it would have tipped the balance and we would have been on the list for closure.
"We get a small amount of money every time we make a transaction across the post office counter.
"And the account means we are part of the local community by, for example, helping pensioners collect their money."
The postmistress at Walbrook Road, in Normanton, Benita Muller, said the account made up 30% of her business.
She said: "The renewal is brilliant news. It would have meant a reduction in our takings, not just directly but also indirectly because of the passing trade we get from people.
"A lot of things, such as TV licence payments and water rates, have been taken away from us already, so it was important we kept the account."
Speaking in Westminster, Mr Purnell said he firmly believed that renewing the contract was the right thing for post office customers and staff.
He said: "The Post Office is a cherished national institution.
"The card account is an important source of income and brings customers through the doors of post offices across the country.
"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."
Alan Cook, Post Office managing director, said the Government's decision meant it could maintain its national branch network of 11,500 outlets.
He said: "It's great news for Post Office Ltd, four sub-postmasters and our customers. We will also be working with other Government departments to drive a wide range of services through the network, while at the same time building on our existing range of financial and other products."
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