ACS

A consultation on the financial services available to the Post Office has begun today with a vision to turn the Post Office into the “people’s bank”. The news comes after the Prime Minister’s comment on 29 September that he “wants the Post Office to play a much bigger role, bringing banking services back to the heart of people’s communities”.

The consultation draws comparisons with Post banks around the world and sets out the government’s plan for Post Office banking and the values that should underpin it.

In addition, the consultation puts forward a number of proposals for new financial products that the Post Office could offer. These include: a Post Office current account, a Children's Savings account to encourage saving at the Post Office from an early age, new services for small businesses including a Post Office business account, and a weekly budgeting account to allow those on low incomes to take advantage of direct debits and reduced bills.

Business Minister Pat McFadden said: "The backdrop of the last two years has resulted in more demand for retailing banking products from a trusted brand. The Post Office will be able to reach some low-income households which many high street banks would not. There is nothing particularly fancy about the products we want to introduce."

He said boosting revenue for the Post Office, which receives a £150m a year subsidy and is part of the state-owned Royal Mail, would help prevent future branch closures. Some 11,500 branches remain after 2,500 – many of them in rural areas – were recently closed.

If you have any views or concerns about the proposals, please contact Jenny Brown on 01252 533008 or by email here.