§ Baroness Byfordasked Her Majesty's Government:
How they expect rural sub-post offices to remain open if the universal bank accounts scheme is cancelled. [HL455]
§ Lord Sainsbury of TurvilleGood progress continues to be made on universal banking services in advance of migration of benefit to ACT in 2003. As my right honourable friend the Minister for Competitiveness and E-commerce announced on 2 December, £450 million will be made available (from 2003 to 2006) to help the rural post office network through the transition of benefit payment to ACT. A total of £150 million will be invested in each of the three years, all of it ringfenced for support of the rural network. The package will be funded from Royal Mail Holdings accumulated surpluses as part of a package to put Royal Mail and Post Office Ltd on a commercial footing. The funding will be administered by Post Office Ltd under contract to the Government. In return, Post Office Ltd will be required to maintain the rural network and prevent avoidable closures working through their code of practice for doing so in the first instance to 2006 and to provide reasonable access for all citizens to "over the counter" services in rural areas. Subject to state aid clearance, funding will be in place in April 2003.