Thousands of pensioners fear they are being ‘hoodwinked’ into closing their Post Office card accounts as Whitehall mandarins send out letters in a bid to reduce number of users
- Campaigners claim letters were sent from Whitehall to the elderly telling them to switch to a bank account for the receipt of their state pension
- Post Office card account provides a simple way to receive pensions and benefits
- But the Department for Work and Pensions is trying to reduce the number of users to save money spent on running the service
Thousands of pensioners are being ‘hoodwinked’ into closing their Post Office card accounts, campaigners have claimed.
They said letters had been sent from Whitehall to the elderly telling them to switch to a bank account for the receipt of their state pension.
The Post Office card account provides a simple way to receive pensions, tax credits or benefits, and withdraw them as cash at a local branch – with no overdraft, fees or charges to worry about. But the Department for Work and Pensions is trying to reduce the number of users to save money spent on running the service.
They said letters had been sent from Whitehall to the elderly telling them to switch to a bank account for the receipt of their state pension
Campaigners are angry that the letters sent to 900,000 pensioners failed to mention that customers can refuse to move – and keep their old account.
Today the Daily Mail launches a campaign calling on the Government to guarantee their future
Letters sent out over the last three years have said: ‘Currently we pay your benefits or tax credits into a Post Office card account. But we now expect you to use a bank… Please call us now to switch.’
Retired nurse Janet Bailey, 74, from Middleton, Manchester, said she received two letters last year. She added: ‘The card account letter made me angry. It’s like they are saying move your account or else.’
Britain’s 11,500 post offices face mounting financial pressures that, it is claimed, have already forced up to 1,000 out of business
Campaigners fear the letters are a prelude to the end of the card account as part of the Government’s strategy to push services online.
The department’s contract with the Post Office to provide the accounts expires in 2021 and ministers have refused to confirm whether it will be extended. It is the latest service under threat after the Treasury removed the ability to pay tax bills at post offices two years ago.
MPs have also accused the Government of leading the Post Office into a ‘managed decline’. Departments have stripped £65million of fees from the Post Office, threatening local branches in towns and villages across the country.
As many as 2,500 postmasters said they are considering resigning or downsizing in the next year because of financial hardship.
The Daily Mail is campaigning to save local post offices, and has called on the Government to guarantee their services are available over the counter in branches.
Postmasters’ pay has been cut by £112million in the last six years. Three in four say they do not make minimum wage and some take home as little as £1 an hour.
Peter Hall, of the National Federation of Sub-Postmasters, said: ‘The Government has not upheld its side of the bargain. There has been no significant new work for post offices from government departments since 2012 and any existing contracts now pay less.’