MP Helps Pensioners Prepare for The End of Pension Books

5.42.58pm GMT Mon 2nd Jun 2003

Vincent Cable MP with Pensioners at Whitton Day Centre

Vincent Cable met local pensioners at Whitton Day Centre, with representatives of Age Concern, to discuss the problems which will arise for pensioners (and benefit recipients) when books are gradually withdrawn and payments made into bank accounts.

Vincent Cable explained that for those who wish to continue to draw cash from the Post Office there are several options;

To cash a cheque at Post Offices (possible for Barclays, Alliance & Leicester and the Co-op Bank but not most other banks).

To open a new, simple, Basic Bank Account which can be used at Post Offices.

To apply for a Post Office Card Account and PIN number.

He said; "the government will save several hundred millions by paying pensions electronically. But the impact on pensioners - and the Post Offices themselves - could be substantial and there really aren't satisfactory answers for large numbers who want to use the Post Office as they used to: not all banks are co-operating in the cheque cashing scheme. Some of the banks make it clear they don't want people with low incomes as customers".

"Some people don't have a bank account or don't want one and worry about the hidden charges. The burocracy required to obtain the new Post Office Card Account would defeat most people let alone the frail elderly".

"It is important that pensioners receive help and advice so that the new arrangements are not a shock or a worry. But I am concerned that the government plans are seriously defective and many elderly people will have trouble making the transition".