Media centre

Many major high street banks and building societies are failing to recognise how important accessing cash through the Post Office can be for older customers. The charity is calling on all banks and building societies to make accounts accessible through the Post Office.

Post offices play a crucial role in providing free access to cash for both Post Office Card Account (POCA) and bank account holders. There are more than 1 million free cash withdrawals at the Post Office everyday1 and there are currently around 3‚000 more post offices nationwide than the total number of all banks and building societies.2

Yet some banks and building societies still do not allow customers to access their current accounts through the Post Office.3 This is particularly a problem in rural and deprived urban areas‚ where there are far fewer bank branches4 and withdrawing cash at many ATMs incurs a fee. Age Concern is calling on all banks and building societies to offer this service and for Government pressure on this issue‚ to ensure financial services are accessible for older people in these areas.

New statistics from Age Concern show that almost half (46%) of older people are unaware that some bank accounts can be accessed through the Post Office.5  Age Concern also wants to see the banks and building societies that do offer this service making their customers more aware that it is available.

Many older people who are concerned about banks introducing charges for services and existing overdraft charges find a POCA easier to manage.6  Yet it can be a complicated process to access pensions and benefits through a POCA.7 A simple application process should be put in place for the proposed improved POCA‚ with clear information in the State Pension application form outlining this option.

Comments from participants in Age Concern’s 2006 Stamped Out? consultation:

‘A visit to my bank involves a 12-mile round trip‚ so being able to access my account through the post office is invaluable’

‘Some smaller supermarkets do cash back but you have to spend £5.’

‘Being a rural area‚ banks and cash machines are in very short supply. Although most of the villages in our area have a post office where people can pick up their pensions and benefits‚ very few of them have either banks or cash machines. Where village shops have a cash machine they are of the type that charge £2.50 a withdrawal’

‘I would have to get a bus to the nearest town and arrange for someone to keep an eye on my disabled wife while I’m away. For my wife‚ whom I can at present wheel down to our post office to collect her own benefits and do the shopping‚ it would mean having to arrange a taxi to town.’

Gordon Lishman‚ Director General of Age Concern‚ said:

“Millions of pensioners access their cash and benefits through post offices and want to continue doing so. But many more are missing out.

“Post offices allow essential free access to cash in rural and deprived urban areas where there are fewer banks. This is particularly important for those living on a low income. All banks and building societies should rise to the challenge and allow their customers to access their cash in this way‚ and the Government should pressure these organisations to make this happen.

“The POCA remains a popular alternative way for pensioners to access their pension and benefits. The Government has committed to maintaining this account in an improved form. To make this work the account must remain post office based and it must be made more simple to apply to receive your pension and benefits in this way.”

Age Concern’s key recommendations on bank accounts and POCAs:

• The Government must put pressure on banks to ensure all bank accounts are accessible through post offices.
• The POCA should be replaced by a better product but must remain post office based.
• A simple application process for the replacement POCA must be introduced.
• There must be a choice to opt into receiving the pension and benefits through the replacement POCA at any time. This account may become more relevant for someone who becomes less mobile‚ develops a serious health condition or becomes a carer.

ENDS
pr/14.19.02.07/eh

Notes to Editors:

Age Concern is part of a coalition which is organising a week of action on post offices from February 19th-23rd. The coalition is campaigning for a sustainable future for the post office network and includes: Age Concern‚ the All Party Parliamentary Group on Post Offices‚ Citizens Advice‚ Communication Workers Union‚ Countryside Alliance‚ National Federation of Sub-Postmasters‚ National Pensioners Convention and the Royal National Institute of the Blind.

1. Source: Post Office limited press release 14/12/05
2. Source: Postcomm’s Network Annual Report 2005-2006.
3. HSBC‚ The Royal Bank of Scotland‚ HBOS (Includes Halifax and the Bank of Scotland)‚ NatWest and Abbey do not allow customers to access their current account through the Post Office.
4. Only 4% of villages have a bank‚ compared to 60% with a post office. Infrequent or inadequate public transport can also restrict access to banks in rural areas‚ particularly for older people who are more likely to be unable to drive or have mobility problems.
5. Age Concern/ ICM research‚ August-September 2006
6. Almost 1 in 5 pensioners (18%) nationally receive their Basic State Pension through a POCA‚ rising to almost 1 in 4 (24%) in rural areas (Age Concern/ ICM research‚ August-September 2006). 4.3 million people in the UK have a POCA‚ Age Concern estimates up to 2 million of these are pensioners.
7. You may only open a POCA account if you are receiving benefits (or the Basic State Pension). Many people who have not received benefits before becoming a pensioner will not be aware of POCA or whether they are able to open an account. To open a POCA‚ an application form from the Post Office must be filled in. However‚ you need to have a letter of invitation before you can obtain an application form. An invitation may be sent with other Direct Payment information otherwise one has to be requested from the Department for Work and Pensions. The Basic State Pension application form only has limited mention of POCA and no details of how to open an account.