Survey Shows Massive Support For Cash Benefit Payments In Post Offices

The overwhelming majority - 95% - who collect pensions and benefits in cash at their local Post Office want to continue doing so when the payment system changes in 2003, according to a MORI survey published today.

The survey, commissioned by the National Federation of Subpostmasters, took place in three areas of the country and asked people who already visit Post Offices for pension and benefit payments what they wanted when the Government pays all benefits by Automated Credit Transfer (ACT) directly into bank accounts from 2003.

Colin Baker, General Secretary of the Federation, said: "The Survey shows that the overwhelming majority of recipients who currently choose to go to Post Offices for their pensions and benefits in cash don't want to change. It includes the Prime Minister's own constituents in Sedgefield, one of the areas polled by MORI.

"Although many Post Office customers already have a bank account, the survey shows that the majority want to be able to use a Post Office-based bank account for pension and benefit payments in cash after 2003 - not their existing current account.

"The Government has pledged that people can continue to get pension and benefit payments in cash at Post Offices when ACT comes in. But will a Post Office-based account be available to everyone for the payment of pension and benefit payments? We call on the Government to fully honour their pledge by guaranteeing that every Post Office customer in receipt of some form of benefits - whether or not they have a current account - will have the right to get a Post Office-based account for pension and benefit payments after 2003.

"Our customers have already chosen their local Post Office. There should be no obligation on them to apply for any other account operated by the High Street banks and building societies. What they now expect, and the survey has confirmed it, is a quick, simple, no-fuss swap of their pension and order books for a Post Office-based account when the change in paying benefits takes place in 2003.

"It's now up to the Government to honour fully their promise."

Paying pensions and benefits generates at least a third of the income of local Post Offices.

Major banks and building societies have agreed with the Government to provide financial support to establish a universal bank, into which pensions and benefits could be paid. This new bank - the Post Office Card Account - is expected to be widely available, especially to pension and benefit recipients.

Mr Baker said: "The survey shows massive support from existing Post Office customers for the concept of the Post Office Card Account.

The MORI pollsters visited twelve Post Offices, in both urban and rural areas, and asked 570 benefit recipients about their preferences when the switch to ACT takes place. The key findings were:

• more than 93% of people who already held a bank or building society account, and 83% of those who didn't have a current account, said they would prefer to continue to receive their pensions and benefits in cash from 2003, rather than by ACT.
• just 6% of pension and benefit recipients at Post Offices who already had a current account said they would prefer to get benefits by ACT.
• nearly three quarters (73%) of people who wanted to continue receiving pensions and benefits in cash at Post Offices said the way they wanted this to happen was by opening a new account operated directly by the Post Office, rather than use a bank or building society that was accessible at a Post Office.
• 76% of cash pension and benefit recipients also used their visit to the Post Office to buy stamps or post letters and parcels, 55% paid their bills at the Post Office, 36% bought groceries or other goods at the Post Office, 32% met their friends and neighbours, and 29% collected leaflets or other official forms. The findings underline how pension and benefit business provides customer "footfall" for the other services and goods available at Post Offices.

Mr Baker said that the MORI survey had confirmed what Federation members have found among their customers around the country.

He said: "The Federation has always said customers have the right to choose. If the Government confirms that our customers will have the right to automatic access - without opening a new account - to a Post Office-based account, there is no doubt that the overwhelming majority of Post Office customers will choose to stay with their Post Office. That will be good news indeed for the future prospects of Post Offices.

Technical details

The MORI Survey is based on 572 interviews with pensioners and benefit recipients receiving payments in cash at twelve Post Offices in Glasgow, Devon and County Durham. Fieldwork was conducted between February 15 and March 1 2001.