Woolas swamped in card protest

Local Government Minister Phil Woolas

Labour MP Phil Woolas has issued a message to his constituents concerned over the future of post office card accounts — “I’ve got the message loud and clear”.

The Milnrow and Newhey MP has been inundated by more than 3,500 post cards from people who fear they will suffer when the popular accounts are closed in two years.

The Post Office Card Account (POCA), which is used to pay pensions and benefits to up to four million people across the UK, is to shut from 2010 — but Mr Woolas wants to reassure people it will be replaced.

He said: “I am very grateful for the huge number of post cards I have received, we have been inundated. The Federation of Post Masters’ campaign has been very successful and I am delighted there will be a new type of account after 2010.

“I’m begging people not to send more. I’ve got the point.”

As many elderly people do not have bank accounts, POCAs are the easiest way to collect benefits or pensions. When they are scrapped, post offices could close as business drops off, critics claim.

They fear pensioners will be reluctant to open bank accounts and use cash point machines, having relied for years on their local post office branch.

But Mr Woolas said people should not be concerned. In a letter to the constituents who have contacted him, he said the POCA was never meant to last indefinitely and an alternative arrangement has always been on the cards.

He said: “The Government will ensure that there is a replacement and will not simply end the POCA without a successor.”

Mr Woolas said the POCA was designed to encourage people who had never had a bank account before to get used to the banking system. Now 70 per cent of those with a POCA also have a bank account — proving it is easy to open one.

He added: “People mention they are concerned many more post offices will have to close. However, there is no reason why the viability of post offices should be threatened if customers continue to draw their money from their new accounts, just as they have been doing with POCAs.”