APPENDIX 11
Memorandum by the National Federation
of Women's Institutes
The National Federation of Women's Institutes
(NFWI) is the UKs largest national voluntary organisation for
women. It has some 215,000 members, in 7,000 Women's Institutes
across England, Wales and the Islands. It is an educational, social
and non-party political and non-sectarian organisation that particularly
represents the views of women in rural communities.
The NFWI fought hard on behalf of its members
to keep the benefit and pensions books but when these were withdrawn
and the POCA was introduced many of our members chose to use the
card, despite many hurdles put in their way. They are now used
to using the cards and have expressed their considerable concerns
to NFWI at the thought that these cards are going to be withdrawn
in 2010 when they will have to cope with a whole new system of
banking. Many of our members are pensioners and their only access
to their pensions is through their Post Offices. They have already
had to suffer one change of system and to make them start again
seems very unfair to an elderly and vulnerable section of the
community.
The fact that 4.7 million users took the POCA
confirms that there is a need for this form of banking. The reason
is that it is simple to use and it is impossible for users to
go into overdraft. We believe that the card account also proved
popular because our members trust the Post Office network as well
as, for many members in rural areas, it is much closer than banks.
The fact that POCA was so successful should mean that the Government
should encourage its development by adding simple features with
smooth transitions, not cancel it and make customers start all
over again. The NFWI believes that the POCA can be developed,
possibly allowing Direct Debits for bill payments leading to savings
for the customer as well as more income to sub-postmasters.
Cancelling the POCA would affect customers in
Post Offices and in turn the income to sub-postmasters which may
threaten the future of many Post Offices. The NFWI campaigns hard
for the retention of Post Offices as they are a vital village
resource and a huge social benefit. If POCA and the Social Network
payment are both withdrawn it is expected that many Post Offices
will be forced to close.
If the Government proceeds with cancelling the
POCA then the NFWI believes that pensions and benefits must still
be able to be collected from Post Offices which are closer to
many peoples homes and, in some areas are the only access point
when transport is not available. In order to do this the Government
should ensure that basic bank accounts, suitable for people on
low incomes, can be opened easily with simple identity restrictions;
all bank accounts should be available free of charge at post office
counters.
In Summary the NFWI would ask the Trade and
Industry Committee to recommend continued support for the POCA
which should be continued and extra features added to make it
even more attractive. This would bring more customers to the Post
Offices encouraging an essential social network system to be maintained.
Withdrawal of the POCA will affect many elderly and weak people
who are not able to travel to local towns for banking facilities
even if they were able to open accounts with High Street banks.
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