News Local Tories back Post Office account pledge
Two local Conservative MPs are giving their support to new proposals which help less well-off families with their energy bills.
Howden MP David Davis and prospective Goole MP Andrew Percy are backing the Conservatives' pledge to reform Post Office Card Accounts (POCA) so that families without bank accounts can benefit from the lower energy and water tariffs offered to customers paying by direct debit.
There are currently eight million people in the UK who do not have a bank account, with many using POCAs instead, but because they cannot pay their bills by direct debit, they face higher prices for gas, electricity and water. The new proposals could cut the energy bills of up to four million POCA holders by up to £100 a year.
Andrew Percy said: "It is totally unfair that many of the poorest households across the East Riding end up paying more for their energy and water bills because they do not have bank accounts and cannot pay by direct debit. Under the current arrangement it is the poor who suffer most."
The new policy could also generate up to £20 million a year in additional revenue for post offices which could help keep them open. Howden MP David Davis said: "I support anything which will help bring in more business to our post offices. Labour have already closed thousands of post offices nationally and this is a simple move which will not only help local people struggling with expensive fuel bills but will also help secure our post offices."
The current POCA contract ends in 2010, however the conservative government want to expand and widen the role of the POCA which will enable it to accept additional deposits including housing benefit and weekly wages as well as create sub-accounts which can be used for direct debit payments on a full range of public and private sector bills.
Published on 28th August 2008 in News.
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