§ Mr. YeoTo ask the Secretary of State for Trade and Industry if she will estimate the change in revenue of the average Post Office branch as a result of changes to the method of paying benefits from April 2003. [86450]
§ Ms HewittThe migration of benefit payments to ACT will take place over two years from April 2003. There will not be a sudden drop in benefit book related income in April 2003. On changeover of payment arrangements, all customers who wish to do so will be able to access their benefits in cash at a post office counter and sub-postmasters will be remunerated for those transactions. The change in revenue as a result of changes to the method of paying benefits from April 2003 will vary according to the individual circumstances of each office, and the extent to which they develop new revenue streams, including from banking services.
Post Office Ltd. continues to develop plans for expansion of revenue generating services in the post office network. Banking will be a central part of the Post Office's strategy to move forward. Universal banking services, together with plans for the expansion of network banking, should lead to substantial increases in the range and volume of banking at post offices, tapping into a very much larger customer base than benefit recipients alone.