Local Post Offices received a boost today as the Labour Government awarded the contract for the Post Office Card Account (POCA) service to the Post Office.  The news will be welcomed by local post offices who rely on the business people picking up their pensions or benefits through the POCA brings into branches.  Around 15,000 people in Croydon have POCAs. 

Welcoming the news, Croydon North MP, Malcolm Wicks, who as Pensions Minister oversaw the introduction of the Post Office Card Account, thanked local people for campaigning on the issue:

"This is great news for the Post Office.  I recently met with the Secretary of State for Work & Pensions, James Purnell, to discuss this issue and I am delighted that the Government has listened to what I have been saying on behalf of local people.  I would like to thank everyone who has stood up for local post offices and made their voices known.

"With the financial crisis that started with the American banks now being felt here in Britain, people are feeling worried about their finances.  Post Offices are often the only providers of banking services in local areas so this vote of confidence in the Post Office is very welcome."

The Labour Government has decided to award a new contract for the continuation of POCA directly to the Post Office.  This announcement is good news for the Post Office as the card account is an important source of income and brings customers through the doors of post offices across the country.  The National Federation of Sub Postmasters had said that, without POCA 3,000 post offices would close.

We announced in December 2006 that there would be a successor to POCA and put that product out to tender.  However, in order to support a viable Post Office network, the Labour Government has decided to cancel the current procurement exercise.

James Purnell paid tribute to Malcolm Wicks for campaigning on this issue saying: "I applaud Malcolm for standing up for people in Croydon North and his local post offices.  I know how important post offices are to local communities and this provides real help for these local businesses and their customers in tough times."