 | 'The alleged pitfalls for scrapping the POCA were outlined in a members debate from North East SNP MSP Richard Lochhead, who is expected to resign from the parliament at the weekend so he can stand in the Moray by-election caused by the death of Margaret Ewing.' Press & Journal, 31 st March 2006. |  |
The Scottish Executive has refused to fight for the retention of Post Office Card Accounts for the payment of pensions and benefits, a system that is to be scrapped in 2010.
MSPs heard last night that ministers would continue to push Scottish interests in their negotiations with the UK Government but not for a one-size-fits-all solution.
The Department for Works and Pensions provoked outrage when it announced that what was thought to be a permanent service was just an interim measure.
Without the Post Office Card Account (POCA), the post office network will lose £1billion over seven years and it is feared many will be forced to close without the revenue, depriving communities - particularly in rural areas - of a valuable service.
The Scottish Parliament heard that about 1,100 out of 1,400 sub-post offices north of the border were not economically viable. If pensioners cannot withdraw their money locally, post offices - a hub of community life - will close with other shops.
MSPs attacked the lack of coherent thinking from the Government.
The alleged pitfalls for scrapping the POCA were outlined in a members debate from North East SNP MSP Richard Lochhead, who is expected to resign from the parliament at the weekend so he can stand in the Moray by-election caused by the death of Margaret Ewing.
Mr Lochhead said about 500,000 benefits were paid into such accounts in Scotland. But 12% of the population did not have a bank account and many branches were closing, he said.
As a result pensioners and people on benefit will be forced to travel to a bank or pay a £1.75 charge to access their money from an automated teller.
"Benefit staff and post office staff are absolutely furious that the Department of Works and Pensions have decided that in 2010 these accounts will ceased to exist," Mr Lochhead said.
Deputy Environment Minister Rhona Brankin said she recognised how important post offices were to rural communities.
But POCAs were inefficient, did not pay interest, or encourage people to open bank accounts.
Ms Brankin said 25 different post office accounts had been generated by the Government to encourage financial inclusion.
She said several pilot schemes were being undertaken to help find the best replacement.
"We are not going to accept a one-size-fits-all approach that does not take into account communities' needs and circumstances," Ms Brankin said.
"We have to ensure that any changes are handled strategically rather than allow the network to decrease in a haphazard way."
Commons leader Geoff Hoon was attacked yesterday for suggesting the POCA was introduced to help pensioners "get used" to using the network.
He made his remark to Gordon Banks, Ochil and Perthshire Labour MP, in the Commons yesterday.
"The Post Office account was always designed as an interim measure to ensure that those pensioners would get used to the idea of using the post office," he said.
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