DAVEY DEMANDS GOVERNMENT WAKE UP TO POST OFFICE POVERTY

4.45.54pm GMT Tue 8th Aug 2006

Edward Davey, Liberal Democrat MP for Kingston and Surbiton, has called on the Government to wake up to the effect withdrawing the Post Office Card Account (POCA) will have on subpostmasters and communities across Britain.

Research commissioned by the National Federation of Subpostmasters (NFSP) and carried out by Ipsos MORI found that the POCA currently brings in an average of £249 a month, or 10 % of a subpostmaster's net pay. The POCA, originally brought in to replace pension books in 2003, is to be scrapped by the Government in 2010, an action that 35 % of subpostmasters list as their biggest fear for their business.

Edward Davey said,

"This research needs to act as a wake-up call to the Government. Forty per cent of subpostmasters made a loss in January 2006. With the withdrawal of POCA in 2010, things are looking even more desperate.

"The withdrawal will cut off a major source of income for subpostmasters. In urban deprived areas, the POCA can bring in as much as £403 per month, or 12 % of net pay.

"With no plans to introduce a Post-Office based successor to the POCA, the Government is striking at the very heart of local communities.

"I will be writing to the Minister again and urging him to rethink his decision in the light of these findings. We must act now to save our local communities."

ENDS

Notes to editors

Read about Liberal Democrat Post Office policy at http://www.libdems.org.uk/commerce/issues/ .

Full report available at http://www.nfsp.org.uk/uploads/pdfs/NFSP-MORI_final_report.pdf

Copies of Edward Davey's letter available on request