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News imageCaroline Moyes reports
"The government wants benefit paid into bank accounts"
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Friday, 4 February, 2000, 08:17 GMT
Benefits 'threat' to rural post offices

Rural post office Rural post offices could close


Warnings have been sounded that Scotland's sub post offices could close if the payment of benefits through the Post Office is ended.

The UK Government is coming under growing pressure to abandon the radical plan to overhaul the social security payments systems.

There are now fears that the move could spell the end of Scotland's sub post office network.

These fears will be spelt out at events in both the north and south of Scotland.

Bank account payments

From 2003, the government wants all benefits paid into bank accounts.

But the proposal has raised widespread concerns, especially in rural Scotland where the processing of benefits makes up the bulk of sub post office business.

Scotland's post office watchdog has already voiced its opposition to the change and is calling on the public to speak out against it.

Serious effects

One of the planned events will see Highland MP and Liberal Democrat leader Charles Kennedy launching a campaign in his constituency.

He is expected to point out that many people in the Highlands and Islands live a long way from their nearest bank.

In the South of Scotland, sub post masters from Dumfries and Galloway and the Borders will unveil the results of a study, which they say spells out the real threat posed by the government's plans.

The benefits payment issue has been compounded by the fact that in recent years the number of local post office closures has risen, with sometimes serious effects on rural or socially deprived areas.

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See also:
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News image 27 Dec 99 |  UK
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News image 27 Dec 99 |  Scotland
News image MSP delivers post office plans rebuke
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