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Www.Guardian.Co.Uk - Ministers are to hold a series of meetings with Labour and Tory backbenchers to discuss what extra services the Post Office network could provide, including helping credit unions, dealing with payment of energy bills and the provision of identity-card services. They are also expected to dust down a Cabinet Office report into potential future services for the Post Office. The move follows the government's surprise decision this week to scrap the competitive tendering process for the post office card account this week, lifting the threat of closure of a further 3,000 post office branches, due to the threatened loss of the contract to supply benefits and pensions to about 4 million customers.The decision does not prevent the Post Office pressing ahead with its near-complete wave of 2,500 closures created by the Post Office network change programme, aimed at stemming losses of £500,000 a day. But there is a mood in government, articulated in a letter from Lord Mandelson to Gordon Brown this week, that the remaining 11,5000 post offices could have an enhanced role at a time when the public are losing faith in banks.Some backbenchers have talked of the Post Office becoming a people's bank, but different backbenchers have different expectations as to what that would mean. The idea of expanding financial services in the Post Office was highlighted in a 2006 report by the business and enterprise department, which spoke of the possibility of providing travel and car insurance. It is also pointed out that until the sale of the National Girobank to Alliance & Leicester, the Post Office had the functions of a People's Bank. Arguably, with the contraction of the number of big banks, and the general public disdain for them, the Post Office could yet find a niche. Lord Mandelson and the business minister, Pat McFadden, have formed an unlikely alliance with the Communication Workers Union and leftwing backbenchers such as Jon Cruddas to discuss widening the scope of business at post office counters, including directing more government business through the Post Office.At present, 78% of Department for Work and Pensions business goes through mainstream bank accounts, 20% into post office card accounts and about 2% are paid by Giro. There will also be discussions with local authorities to see if there is any mileage in the Post Office forging closer relations with local government, an idea that has been promoted for nearly 18 months by Kent County Council , but has so far led to only two post offices being reopened or kept alive. The Local Government Association has complained it has not had sufficient information from the Post Office on the viability of individual branches. The CWU has claimed that an enhanced Post Office could ensure that basic service charges the poor pay are reduced directly by allowing service debits. Energy and telecoms companies charge customers money for not using direct debits. A publication by the Save the Children/The Family Welfare Association, estimated that financially excluded and low-income families pay an additional £1,000 a year as a result. Cruddas and other backbenchers, such as Kerry McCarthy, have suggested "the People's Bank could also become a vehicle for promoting micro-credit startups". Mandelson has said he would set up a interdepartmental look at the network's new areas of service, but he would also have to decide how to respond to the wide-ranging review of the Royal Mail prepared for government by Richard Hooper, the former post-comms regulator. It has been suggested this report would propose joint Royal Mail ventures with the private sector. Mandelson said it would publish its finding within the next few weeks.Postal serviceRural affairsWelfareguardian.co.uk © Guardian News & Media Limited 2008 | Use of this content is subject to our Terms & Conditions | More Feeds Ministers look to widen role of post offices | UK news | The Guardian {...} Facilities may include helping credit unions, payment of energy bills and provision of identity-card services {...} Published: November 15, 2008, 12:07 am - Indexed: November 15, 2008, 1:05 pm - Page Size: 74KB |