Politicians in Dundee warmly welcomed news that the Post Office is to retain their card account in house.
Dundee City Councillor Jim Barrie, who will stand for the SNP in Dundee West at the General Election, said: “I am delighted at the news that the card account is to be retained with the Post Office.
“This will safeguard the remaining Post Offices in Dundee and prevent a further half dozen closures in the city.”
Dundee East MP Stewart Hosie said: “We campaigned strongly for the Post Office Card Account to be retained with the post office. This victory is down to the pressure exerted on the UK Government by the SNP and other parties and by DC Thomson & Co Ltd.
“In making their decision, Ministers were clearly aware of the need to avoid any further trauma in the Post Office network after the closure of 2,500 Post Offices.”
The Post Office Card Account is a basic cash account operated by the Department for Works and Pensions that can only receive welfare, state pensions and tax credit deposits.
Four million people have these accounts and the contract is up for renewal in 2010. There are up to eight million people in the UK who do not have a bank account and many of them use card accounts instead, but because they cannot pay their bills by direct debit they face higher charges for gas, electricity and water.
Commenting on the decision, Stewart Hosie said: “This decision is to be welcomed by all who support Post Offices as providers of a key service.”
Concerns have been raised in Dundee over the UK Government’s imminent changes to benefits which will mean that lone parent’s Income Support may stop in two weeks time if their youngest child is 12 or over.
Those lone parents losing their IS will need to contact their Jobcentre Plus and find a job and make a claim for Jobseeker’s Allowance or Employment and Support Allowance. They will also have to attend Work Focused Interviews designed to get them into work.
Dundee Councillor Jim Barrie, who will be standing for the SNP in the Westminster seat of Dundee West at the General Election, has expressed concern over these changes, which take effect in less than two weeks time.
Councillor Barrie, presently SNP Spokesman for Social Work and Health on Dundee City Council, said: “These changes seriously undervalue the work of parenthood and treats the raising of children as the equivalent of being unemployed.
“Only lone parents with foster children or those who receive Carers’ Allowance or incapacity Benefit or credits or have a dependent child receiving middle or higher rate care component of Disability Living Allowance will still be able to receive Income Support.
“Lone parents outside those categories will lose their Income Support and be required to attend Work Focused Interviews every three months. Lone parents with a youngest child of 12 or over will not be entitled to Income Support after 24 November 2008.
“These benefit changes will be phased in over the next three years and will cover youngest child of 7 years by 2010.
“My concern is that there may be some single parents who place a higher value than the Brown government on the raising of children, who will now effectively be designated unemployed, rather than as lone parents. They will be forced to take a job and arrange for alternative childcare instead of having the option of being a fulltime parent.”