Claimants will still have to visit the Post Office

More than 170 Labour MPs have already signed a parliamentary petition urging ministers to ensure new ways of paying benefits do not put local post offices at risk.

On Wednesday, the Tories used the exact text of that petition as their motion in an opposition day debate on the issue in an effort to prompt a Labour rebellion.

But the motion was defeated by 314 votes to 187, a majority of 127 for the government.

Ahead of the debate, shadow trade and industry secretary Tim Yeo said he had personally e-mailed the MPs who backed the petition.

This is a rare opportunity for MPs of all parties to come together in support of post offices Tim Yeo Shadow industry secretary

"We are calling this debate to allow the 376 MPs of all parties who signed the motion to support anyone who wishes to open and use a Post Office card account.

"This motion recognises the damage the government's policy has done to pensioners and vulnerable benefit claimants as well as the viability of 17,500 post offices nationwide.

"This is a rare opportunity for MPs of all parties to come together in support of post offices and reflect the concerns the concerns of communities around the country which the government is continuing to ignore."

Benefits changes

Since 1 April this year, pensioners and those on benefits have been faced with a change in the way they receive money from the government.

They can either have the money paid into their bank accounts or apply for a Post Office card account where they are given a card and pin number and claim the cash from the post office.

But the Communications Workers' Union, which represents many post office staff, says the government is encouraging people to use the direct banking method.

Ministers deny any favouritism but concerns continue that the change could prompt widespread job cuts and see offices closed.

Among the Labour MPs who signed the original petition were former ministers Frank Field, Chris Smith and Kate Hoey, as well as Martin O'Neill, chairman of the trade and industry select committee.

They called on ministers to ensure there was a "level playing field" in the way the different banking options are promoted.

The Post Office card was important to the future viability of sub-post offices, said the MPs.

'Safeguard, not danger'

Work and Pensions Minister Malcolm Wicks put up a stout defence of the subject in the Commons debate.

Mr Wicks said: "Changes in the way we pay benefits and pensions will ensure a more modern, efficient and reliable service that will increase customer choice, provide better value for the taxpayer, cut fraud and boost financial inclusion."

Mr Wicks said nobody was being forced into using bank accounts.

"The whole point is about giving people choice.

"If we did not make this choice the Post Office network would be bled dry by people choosing to have their benefits paid into a bank or building society.

"It is only by offering choices that we offer some safeguard to the future of the Post Office."