Post Office to offer new services

29 Dec 2000

Scotland Office Minister, Brian Wilson, today (Sat 30 December) encouraged "a New Year resolution" to make greater use of local Post Offices in order to help protect their futures.

Mr Wilson said there was insufficient knowledge of the wide and growing range of services which are available at Post Offices. He said:

"The Government is committed to doing a great deal to help ensure the future of Post Offices. But the best guarantee of their future is that people use them to the full."

He highlighted the recent link-up between the Post Office and Scottish Power whose customers will be able to buy pre-payment meter cards, pay bills and arrange budget payments without additional charges at all Post Offices in Scotland.

Mr Wilson also pointed out that the partnership between Lloyds TSB and Post Office Network allows Lloyds TSB customers to carry out basic banking transactions at 2,000 post offices throughout Scotland free of charge.

Other services available include; ISAs, foreign currency, travellers cheques, travel insurance, passports and forms providing medical cover in all European Community countries.

Mr Wilson said: "A significant step has been taken towards the establishment of Universal banking services. Agreement has been reached in principle with Barclays, Lloyds-TSB,Royal Bank of Scotland, Nat West, Abbey National and Halifax to participate in a scheme to provide banking services through the post office network.

"The agreement of these major banks to participate in the provision of universal banking services brings the project a step closer to implementation. Universal banking services will provide a range of facilities which will cater for as wide a range of customers as possible and will provide an opportunity for people who had not previously held bank accounts to enter the mainstream financial system.

"The Government recognises the important role that the post office network plays in supporting the lives of people throughout the country. These initiatives will further enhance the range of services offered through the post office network and complement other measures that the Government is taking to expand the range of services available through the network. Pilot schemes including Digital Highland are being created to provide Internet access and learning point facilities within post offices. If these pilots prove successful the intention is that these facilities should become widely available, providing another valuable role for post offices particularly in areas where these facilities would not otherwise exist"

NOTES FOR NEWS EDITORS

1. Scottish Power launched the free bill payment facility throughout the Post Office network on 4 December 2000, following a successful pilot scheme conducted in selected post offices in the Manweb region. The decision to re-introduce pre-paid power card purchase facilities reverses an earlier decision by Scottish Power to withdraw this facility from the post office. Payment of Bills through the post office network was previously subject to a £1 charge.

2. Mr Wilson is a member of the new Ministerial Group on the Post Office, chaired by Stephen Byers. The terms of reference of the group are to oversee implementation of the Performance and Innovation Unit report "Counter Revolution" on the modernisation of the post office network, which was published on 28th June. The full text of the report is available on the Cabinet Office website: www.cabinet-office.gov.uk/innovation/2000/postoffice/postindex.htm, or from the Performance and Innovation Unit on Tel: 020 7276 1446 or 020 7276 1449.

3. The aim of Universal banking services is to use the extensive Post Office network throughout the UK to provide basic bank accounts without overdraft or borrowing facilities to those people currently without bank accounts. Agreement in principle was reached on 20 December with Barclays, Lloyds-TSB Royal Bank of Scotland/Nat West, HSBC, Abbey National and the Halifax that they will contribute to Universal banking services. The Government is continuing to discuss with other banks and building societies the contribution that they can make.

4. Post Office Counters Ltd offers a comprehensive range of products and services through its unique network of some 19,000 post offices throughout the UK, more than all the major banks and building societies combined.