Post Office reforms threaten rural economies, warns ACCA

The livelihoods of people running small businesses in rural communities are being put at risk by government reforms, the Association of Chartered Certified Accountants (ACCA) has warned.

New proposals by the government include plans for benefit payments to be made directly into bank accounts.

Commenting on the government plans, Andrew Harding, Executive Director, ACCA UK, said: "The sub-post office, which currently receives a third of its income from paying benefits over the counter, is relied upon by thousands of small businesses in isolated rural communities. If these proposals result in the closure of small post offices, small business people will be forced to travel much further, sometimes at great inconvenience, in order to deposit or withdraw money and to post important packages.

"Additionally, if payments of benefits over the counter are phased out as the Government intends, anyone who is not familiar with banking will suffer as a result. While this will affect everyone, the greatest impact will inevitably be on the most vulnerable people - the elderly and disabled."

Currently, about 15 million people collect their benefits and state pensions by using order books or giros. From April 2003, the Government will start to phase out these methods. Instead, payments will be made directly into bank accounts or into a new Card Account at the Post Office.

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