Scrapping pension book will force over 4,000 customers to desert Islington's post offices

12.00.00am GMT Mon 19th Jan 2004

Laura Willoughby, Lib Dem Executive Member for Communities, has revealed shocking new figures which show that local post offices in Islington will lose over 4,000 customers thanks to the Labour Government's plans to force pensioners to collect their cash from banks rather than at post offices with a pension book. This comes as yet more post office closures are being planned for Islington. Lib Dem Laura Willoughby will be leading the fight to save post offices on Hornsey Road and Holloway Road which have both been recently earmarked for closure. She has put a motion to council calling on the Labour Government to stop their plans to take away pension books because it will threaten the future of post offices and because pensioners should have the freedom to choose how they want to receive their pension. Post Offices on Westbourne Road, Archway Road and Old Street have already shut despite protests from local Lib Dem councillors and local residents. Commenting on the figures Laura said: "Labour are forcing people out of our local post offices and into banks or building societies. But for many pensioners the trip to the post office to collect their pension is a sociable outing. "Many of them will be heartbroken to give up their pension book and it will take away much needed business from post offices already threatened with the axe. "The Lib Dem council is doing its bit to back Islington's post offices - for example by encouraging tenants to pay their rent there. The Government should be supporting our local post offices and giving people the choice about how they receive their money. "We're asking all Islington pensioners who want to keep their pension book to join our campaign by writing to the Government asking them to think again." The Government is writing to all pensioners and benefit claimants who pick up their money at the post office telling them to choose one of three 'direct payment' options. In Islington more than half of Islington pensioners collect their pension at a local post office using a pension book. The independent House of Commons library have produced figures which show that 47% of pension book users are, when asked, opting for bank & building society accounts. This means that in Islington out of 8,815 people who currently collect their pension from the post office, over 4000 are likely instead to opt for a bank or building society account. As the post office receives a fee for processing benefit payments this will result in a massive loss of revenue for the post office network. Notes: Below is a copy of the motion the Lib Dems have tabled which will be debated at the council meeting on the January 27th 2004. Save the Pension Book: Proposed by Cllr Laura Willoughby, seconded by Cllr Margot Dunn Council notes that more than half of Islington pensioners collect their pension at a local post office using a pension book. Council also notes the Labour government's plans to scrap pension books and force pensioners to only receive pensions through their bank accounts or by automated payments. This Council condemns the Labour Government's plans because: Current pensioners should have the freedom to choose how they want to receive their pension - including with a pension book. The Government have already backed plans to close up to 3000 urban post offices and scrapping the pension book will threaten the future of post offices even more The Government's plans to change the way benefits are paid are both unnecessary and needlessly complicated

Council welcomes the launch of a borough-wide petition to save the pension book and the on-going campaign against post office closures in Islington by the Liberal Democrats. Council therefore calls on: The Government to stop their plans to take away pension books. All Islington pensioners who want to keep their pension book to write to the Government expressing their opposition and asking them to reconsider. The Government's Payment Modernisation Programme involves writing to all pension and benefit claimants who do not have their money paid directly into a bank or building society account. The 'invitation' offers three payment options 1) Direct into a normal bank or building society account 2) Direct into a new basic bank account, and 3) Directly into a Post Office Card Account. Pensioners are NOT being given the option of retaining their pension books. The Government's programme is running over a two year period and aims to convert all those invited by April 2005.