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| Version 0 | Version 1 |
|---|---|
| Call for 'people's postal bank' | Call for 'people's postal bank' |
| (about 6 hours later) | |
| Making the Post Office the "people's bank" could secure its future and help those not served by banks, a coalition of MPs and interest groups is arguing. | Making the Post Office the "people's bank" could secure its future and help those not served by banks, a coalition of MPs and interest groups is arguing. |
| They are due to outline plans for a Post Bank, offering a wide range of financial services at its branches. | They are due to outline plans for a Post Bank, offering a wide range of financial services at its branches. |
| Unions say it would help those without bank accounts while business groups say it could create as many as 11,000 jobs. | Unions say it would help those without bank accounts while business groups say it could create as many as 11,000 jobs. |
| Ministers, who want post offices to offer more products, "welcomed" the ideas being put forward. | Ministers, who want post offices to offer more products, "welcomed" the ideas being put forward. |
| 'Inclusive' | 'Inclusive' |
| However, the Department for Business, Enterprise and Regulatory Reform said there would be different views about how to implement them. | |
| Thousands of post offices have closed in recent years; benefit payments are often paid directly into bank accounts and other products - such as car tax discs - are increasingly sold online. | Thousands of post offices have closed in recent years; benefit payments are often paid directly into bank accounts and other products - such as car tax discs - are increasingly sold online. |
| Despite £1.7bn in government subsidy designed to keep 11,500 branches open, there are fears that more shops will be forced to close, particularly in rural areas. | Despite £1.7bn in government subsidy designed to keep 11,500 branches open, there are fears that more shops will be forced to close, particularly in rural areas. |
| Supporters of the Post Bank model want it to become a fully-fledged "socially inclusive" alternative to commercial banks, serving more than 20 million customers every week. | Supporters of the Post Bank model want it to become a fully-fledged "socially inclusive" alternative to commercial banks, serving more than 20 million customers every week. |
| The Post Bank will appeal to many in this time of economic uncertainty Billy Hayes, CWU | The Post Bank will appeal to many in this time of economic uncertainty Billy Hayes, CWU |
| Labour MP Jon Cruddas and Lib Dem treasury spokesman Vince Cable will be among those arguing for a Post Office branded institution offering competitive savings products, affordable loans and mortgages at an event in London - at which postal minister Pat McFadden will also speak. | Labour MP Jon Cruddas and Lib Dem treasury spokesman Vince Cable will be among those arguing for a Post Office branded institution offering competitive savings products, affordable loans and mortgages at an event in London - at which postal minister Pat McFadden will also speak. |
| Supporters of the proposal say that even before the current banking crisis about three million people did not have to basic bank accounts, with pensioners and those on low incomes most marginalised. | Supporters of the proposal say that even before the current banking crisis about three million people did not have to basic bank accounts, with pensioners and those on low incomes most marginalised. |
| With public confidence in banks at a low ebb, unions say there is a real need for a trusted institution offering over-the-counter service in some of the most deprived and remote parts of the UK. | With public confidence in banks at a low ebb, unions say there is a real need for a trusted institution offering over-the-counter service in some of the most deprived and remote parts of the UK. |
| "The Post Bank answers the needs of the financially excluded and will appeal to many in this time of economic uncertainty," said Billy Hayes, general secretary of the Communications Workers Union which represents postal workers. | "The Post Bank answers the needs of the financially excluded and will appeal to many in this time of economic uncertainty," said Billy Hayes, general secretary of the Communications Workers Union which represents postal workers. |
| "The Post Bank will be a true people's bank, meeting the needs of society and business alike, and will bring crucial security to the post office network." | "The Post Bank will be a true people's bank, meeting the needs of society and business alike, and will bring crucial security to the post office network." |
| Job creation | Job creation |
| Efforts to give post offices more commercial freedom are backed by employers' groups who say small firms, whose access to credit has dried up, rely on a successful network to help their business. | Efforts to give post offices more commercial freedom are backed by employers' groups who say small firms, whose access to credit has dried up, rely on a successful network to help their business. |
| "Most sub-post offices are run like small businesses and keeping the network alive by establishing Post Bank would not only retain jobs but could also, we estimate, create 11,000 new jobs," says John Wright, chairman of the Federation of Small Business. | "Most sub-post offices are run like small businesses and keeping the network alive by establishing Post Bank would not only retain jobs but could also, we estimate, create 11,000 new jobs," says John Wright, chairman of the Federation of Small Business. |
| Pensioners groups said people had "lost faith" in High Street banks over the past year and a postal bank could provide "much-needed security" to those fearing for their savings. | Pensioners groups said people had "lost faith" in High Street banks over the past year and a postal bank could provide "much-needed security" to those fearing for their savings. |
| It could deliver more banking and financial services right in the heart of local communities Department for Business spokesman | It could deliver more banking and financial services right in the heart of local communities Department for Business spokesman |
| The Post Office has sought to diversify its business in recent years, offering mortgages since 2003. | The Post Office has sought to diversify its business in recent years, offering mortgages since 2003. |
| But with most of the 12,000 branches run by sub-postmasters or franchisees, there are concerns over whether they have the expertise to expand in this way and how this will be funded. | But with most of the 12,000 branches run by sub-postmasters or franchisees, there are concerns over whether they have the expertise to expand in this way and how this will be funded. |
| Ministers say the Post Office is looking at new business opportunities to ensure it remains sustainable, such as being the sole provider for pictures for new passports and ID cards. | Ministers say the Post Office is looking at new business opportunities to ensure it remains sustainable, such as being the sole provider for pictures for new passports and ID cards. |
| Late last year the government awarded the contract to issue the Post Office Card Account - used by four million benefit claimants - to the Post Office amid fears that an extra 3,000 post offices could close if it were contracted out. | Late last year the government awarded the contract to issue the Post Office Card Account - used by four million benefit claimants - to the Post Office amid fears that an extra 3,000 post offices could close if it were contracted out. |
| "The Post Office already offers a successful range of financial services products," said a Department for Business spokesman. | "The Post Office already offers a successful range of financial services products," said a Department for Business spokesman. |
| "But it could deliver more banking and financial services right in the heart of local communities." | "But it could deliver more banking and financial services right in the heart of local communities." |