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Post Office closures will 'isolate' the old
Last updated at 23:52pm on 10.12.06
Millions of pensioners could be left isolated and penniless if the Government closes 3,000 Post Offices, lobby groups have warned.
Since Labour came to power, a quarter of the country's Post Offices - which often serve as a community's only local store - have been shut down leaving a network of just over 14,000.
But the Department of Trade and Industry is expected to wield the axe this week and announce that between 2,500 and 3,000 more must shut - leaving many with a journey of several miles.
At the upper limit, this is the equivalent of every single Tesco and J Sainsbury in Britain being shut down, and 400 corner shops too.
Lobby groups warn pensioners will be cruelly impacted by the closures because they rely on local Post Offices more than any other age group.
At present, 99 per cent of the population live within three miles of a Post Office, with millions living just a short walk from their local branch.
But distances are guaranteed to get longer when several thousand more Post Offices, largely in rural villages, are axed.
Colin Baker, general secretary of the National Federation of Sub-Postmasters, said: "Many pensioners cannot just jump in their 4x4 and drive to the local town.
"Many of them lead very isolated lives. They need the Post Office to talk to people and to meet their friends.
"More than anything, they have a lot of trust in Post Offices. They are the anchor of the community in towns and villages across the country."
The latest round of closures will lead to Post Offices closing which are the only shop for several miles, the Liberal Democrats warned yesterday.
If a pensioner wants to buy a stamp or get their pension, they will face a stark choice - do a long round-trip to the nearest Post Office, or be abandoned.
Edward Davey, the Lib Dem Shadow DTI spokesman, said: "The easy fruit have gone already.
"We are left with the Post Offices which are a lifeline, but it is a lifeline that the Government is going to cut.
"We will fight these closures Post Office by Post Office."
In another blow, the Post Office Card Account, used by one in four older people living in rural villages, will be scrapped in 2010, just seven years after its introduction.
It was set up in 2003 when the Government forced pension and benefits claimants to receive payments via a bank account.
Those who did not or could not set up a bank account, were given the option of a Card Account, similar to a very basic bank account.
The DTI is expected to replace the Card Account but only for the one million people who do not have a bank account.
But many pensioners have a bank account, but prefer to go into their local Post Office to withdraw their weekly pension and have a chat at the same time.
Gordon Lishman, director general of Age Concern, said: "The closures are bad news for the community - but it is particularly bad news for old people.
"The decision should not just be about: 'How much money is this Post Office losing?' but 'How important is this Post Office to the community?'"
At present, rural Post Office get a Government subsidy of £150 million a year.
Even if this subsidy continues at its current level, which is expected at this week's announcement, it will not be enough to keep the network alive.
Over the last year, the losses have doubled to £4 million every week, largely as a result of Government business abandoning the Post Office.
Everything from pension payments to renewing the BBC licence has left the Post Office, and can be done online or by a rival.
MPs of all parties are urging the Government to help the Post Offices to survive by loosening the controls on the type of business they are allowed to do.
For example, courier companies such as Fed-Ex are not allowed to drop off packages, which they could not deliver to people's homes, at the nearest Post Office.
A Royal Mail spokesman said: "The future size of the Post Office network depends entirely on the Government's decision on how much financial support it will provide."
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