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14th November 2008
Post Office to keep card accounts
The government has awarded the Post Office with a contract to continue offering card accounts used by millions of people to receive benefits and pensions.
There had been warnings that as many as 6,000 post offices would be under threat if the Post Office Card Account (Poca) had been given to a rival bidder.
Work and pensions secretary James Purnell told the House of Commons that the Poca procurement process was being dropped and that the Post Office would carry on providing the service until at leas 2015.
Although the move might prevent the immediate loss of thousands of jobs, claims have been made that the government wanted to give the contract to rival bidder PayPoint, but had bowed to popular demand.
Alan Duncan, Conservative business spokesman, said the decision was "a humiliating climbdown" for the government.
The government is currently in the process of closing some 2,500 branches this year, as it attempts to cut costs and 'streamline' the network.
(c) 2008 Adfero Ltd.
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