Stamp up your saving

By HELEN LOVELESS, MAIL ON SUNDAY ENTERPRISE EDITOR
Updated:

 

NEW savings stamps launched today by the Post Office could make it easier for those on a tight budget to pay the bills.

The launch follows worrying research commissioned by the Post Office that reveals more than 20m people struggle to meet their regular household bills, with 14% of customers waiting until they receive the final demand before paying up.

Many of those questioned also admitted using delaying tactics to avoid paying, including not opening the envelope and claiming not to have received the bill. Around half of us face problems covering living costs at some stage in life.

The stamps are designed as a budgeting tool and have a value of £5 each. Once savers have paid for stamps they need to stick them to a 'collector card', which holds up to 20 stamps, with a total value of £100.

The cards can then be redeemed to pay for all products or services available through post office branches. These include council tax and car tax, TV licences, traveller's cheques and foreign currency, travel and car insurance, flowers and Christmas gifts.

But where the stamps are expected to prove most useful is in helping people to save towards the cost of utility bills. According to the Post Office, saving just £10 a week in savings stamps for three months would go halfway to covering the average household's quarterly £290 bill for utilities.

David Mills, chief executive of the Post Office said: 'Every year 500m household bills are paid at the Post Office and our research shows that it's not just the older age groups who welcome savings stamps as a way of budgeting for them.

'We see a significant market among younger people, especially younger mothers and students, who want a practical, tangible way of planning for their household expenses,' he added.

The launch of the savings stamps was welcomed by the National Consumer Council (NCC). Deputy director of policy, Claire Whyley, praised the scheme for 'recognising the needs' of disadvantaged customers with little money to spare.

'People on low incomes tell us, overwhelmingly, that they prefer to manage their money in cash, on a weekly basis, and to be able to make small, frequent payments towards their bills. Spreading the cost of large bills is a key way for people to control their spending and avoid falling into arrears,' she said.

The cards can be redeemed before they are completely full and there is no time limit on redeeming them. The stamps and the cards will be available at all 16,000 Post Offices across the UK from today.

Most watched Money videos