Sarah Newton MP welcomes the Government commitment to the Post Office Card Account and new fee-free bank accounts for local people.
After many years of campaigning for the Post Office Card Account, Sarah Newton MP has welcomed the Government’s announcement today.
The Post Office Card account is used by 2.5 million people, including 1.3 million pensioners, a significant group who are over 80. The account is also invaluable for those people who rely on someone else to collect their money for them, for example because of a disability. Today the Government announced a new £250 million, seven year contract, which will protect a key service for vulnerable pensioners and benefits claimants, as well as helping safeguard the future of the Post Office network.
Commenting on the news today, Mrs Sarah Newton MP: "For those that cannot access mainstream banking, the Post Office Card Account is a vital service. This long term deal is good news for the users of the service and good news for the Post Office and sub postmasters.
This news coupled with the news yesterday that the Treasury has secured a major deal with banks to provide a new fee free basic bank account will make a real difference to many people living on low incomes here. Without a bank account people cannot access the best deals by paying by direct debit for essential basics such as gas and electricity.
Most local post offices accept a wide range of bank debit cards so both Post Office Card Account customers and the new basic bank account customers can access cash from their local post office. Access to fee free basic bank accounts is vital to local people on low incomes and particularly those struggling to budget and manage their finances.
While I remain a firm supporter and customer of the Kernow Credit Union who provide such a vital, low cost service to enable people to budget, save and borrow, it is good to see both the Post Office Card account and the fee free basic bank accounts are available to help local people".
Basic bank accounts do not offer overdrafts or cheque books, and may be given to those with a chequered credit history. They are for people who might not be able to open a standard account and customers in financial difficulties.
Some holders of these accounts have been hit by initial feeds of £30 or more after a direct debit or standing order payment has bounced. The cost can then escalate if the fees are unpaid.
Under the new terms agreed, these one off fees will be scrapped.