Labour gives Card Account to Post Office

Hull's Post Offices received a boost today as the Labour Government awarded the contract for the Post Office Card Account (POCA) service to the Post Office.

The news will be welcomed by local Post Offices who rely on the business that POCA bring into branches through people picking up pensions or benefits through their POCA accounts. Over 27,000 people in Hull have POCA accounts.

The National Federation of Sub Post Masters had said that without POCA 3,000 more Post Offices would close.

The Government announced in December 2006 that there would be a successor to POCA and put that product out to tender. However, in order to support a viable Post Office network the Labour Government has decided to cancel the current procurement exercise.

Welcoming today's news, Diana Johnson MP has thanked local people for campaigning with her on the issue.

Diana Johnson MP said: "This decision is great news for Hull's Post Offices.

"I recently met with James Purnell to discuss this issue. I am delighted that the Government has listened to what I have been saying on behalf of local people. I would like to thank everyone in Hull who has made their views known about POCA and local Post Offices. This has been very helpful in my discussions with ministers.

"With the financial crisis that started with the American banks now being felt here in Britain, people are feeling worried about their finances. Post Offices are often the only providers of banking services in local areas, with more outlets than all the banks and building societies put together.

"Post Offices are familiar and trusted local institutions. Alongside organisations such as local credit unions, they provide important financial services for local people. Combined with the £1.7 billion of subsidy that the Government is providing to the Post Office network, today's decision is a welcome vote of confidence in the branch network and a firm basis on which the network can secure new areas of business for the future."

Labour's Secretary of State for Work and Pensions James Purnell paid tribute to Diana Johnson MP for campaigning on this issue, saying: "I applaud Diana Johnson MP for standing up for local people in Hull North and her local Post Offices. I know how important Post Offices are to local communities and this provides real help for these local businesses and their customers in tough times.

"This is the right decision for Hull."