Next steps for Post Office banking announced
Published: Mon, 29 Mar 2010 17:11:42
Business Secretary Lord Mandelson today (29 March 2010) announced a major expansion of the financial services offered by the Post Office, in a drive to put banking back into the heart of communities and making the Post Office network of 11,500 branches more sustainable. He also announced £180m of new funding for the Post Office.
The measures announced by the Government mark a step change in banking at the
Post Office and demonstrate the Government’s ongoing commitment to the
Post Office network. They include:
· Funding - £180m of new Government
funding for the Post Office in 2011/12 to maintain the network at around its
current size. This goes beyond the £1.7bn that is already being
invested between 2007 and 2011.
· Facilities will include Business services,
Mortgages and 3 types of accounts Weekly Budgeting account, Children’s
Savings account and Post Office Current account. Detailed
negotiations are taking place with RBS and Santander to give access to their
current accounts at Post Offices.
· Increasing affordable credit - plans to
support a national distribution network with credit unions.
· Saving Gateway – the Post Office will
launch a Saving Gateway account this year. This is a new account for people of
working age who are on lower incomes which aims to kick-start the savings
habit, with Government adding 50p for every £1 saved.