Pensioner power

By TOBY WALNE, CHIEF MONEY REPORTER
Updated: 19:00 EST, 4 May 2002

AGE Concern, one of Britain's most respected and powerful charities, has thrown its weight behind Financial Mail's Save Our Post Offices campaign.

Since we started the crusade in March, hundreds of readers have written in, outraged at the arrogance of Consignia - which owns the Post Office - for axing thousands of small outlets.

Readers fear that the loss of local post offices will cause irrevocable damage to communities and leave pensioners isolated without essential services.

Age Concern, which fights for the rights of 11 million pensioners, believes the survival of local post offices is vital for the elderly.

Director-general Gordon Lishman says: 'Post offices are a lifeline for many older people, and closing them would have a devastating effect.

'It would create a real threat of social exclusion, with lots of people missing out on the social contact enjoyed on their weekly visit to the post office.'

Age Concern is also incensed at the Government's decision to pay social security benefits straight into bank accounts from next April rather than over the counter at post offices.

This move means that post offices will lose about 40% of their revenue and is expected to lead to more closures. This is on top of the 3,000 urban branch closures announced by Consignia last month. Last year, 547 of the 17,000 post offices were closed.

Anne Crabtree, 71, of Clifton, Bristol, is co-ordinator of the 300-strong Senior Citizens' Forum, a group set up to discuss local issues affecting the elderly. She says: 'The very people the payment changes are going to affect were neither consulted by the Government nor the Post Office. It shows the level of arrogance and contempt in which pensioners are held.'

Anne says: 'I fear that without a good reason to go out and collect pensions, some elderly people are likely to become housebound. And for those who do not have a bank account, and do not want one, the situation will cause financial chaos.'

Gordon Steel, executive director for customer services at Consignia, defends his company's policy on post office closures, claiming that most communities will not suffer.

He says: 'We accept that the post office is very much at the heart of the community and want it to remain so in the future. The basis of the closure programme is that our business needs to be sustainable.

'However, even after all the urban closures, 95% of people will still be within a mile of a post office. And contrary to what many people might believe, we are actively encouraging rural outlets to remain open.'

Steel points out that customers will still be able to pick up their pensions at the post office from next April if they insist. He also believes that new initiatives, such as basic no-frills bank accounts and currency exchange, should help to boost post office revenues.

Plans for a so-called universal bank, aimed at 3.5 million people who have no current account, are still in doubt after talks stalled last year when High Street banks were asked by the Government to donate £200 million towards the initiative.

However, the Post Office, which offers National Savings accounts, already has links with Alliance & Leicester, Co-operative bank, Barclays, Lloyds TSB, Smile, Cahoot and, in Scotland, with First Direct.

It also has plans to install more than 2,000 cash machines this year in a profit-making initiative, charging £1.25 for every transaction. The machines will be supplied by manufacturer Hanco.

• IF your community is threatened by a post office closure, write to: Save Our Post Offices, Financial Mail on Sunday, Northcliffe House, 2 Derry Street, London W8 5TS, or e-mail toby.walne @mailonsunday.co.uk