Bute MP welcomes new deal for Post Office account

The Post Office card account is used by around 2.5 million people across the United Kingdom to receive benefit payments, pensions and tax credits.
The Post Office card account is used by around 2.5 million people across the United Kingdom to receive benefit payments, pensions and tax credits.

Bute’s Westminster MP has welcomed news of the award of a new seven-year contract to safeguard the Post Office card account.

Alan Reid was speaking after DWP minister Steve Webb announced on Tuesday that the government had awarded a £250 million contract to Post Office Limited to keep the account available until at least November 2021.

The account is used by around 2.5 million people across the UK to pay benefits, pensions, allowances and tax credits at the Post Office, rather than into a conventional bank account.

Speaking in the House of Commons immediately after Mr Webb gave news of the new contract, Mr Reid said: “It is good news for all the village post offices in my constituency and the pensioners who use them.

“It guarantees the long-term future of such post offices, and it is a contrast with the attitude of both the previous government and the banks that are shutting rural branches.”