HC Deb 16 May 2002 vol 385 c854W
Mr. Webb

To ask the Secretary of State for Work and Pensions if he will estimate the(a) percentage and (b) amount of funding that (i) the Government and (ii) the banks will invest to establish the new direct bank. [54511]

Malcolm Wicks

The Government have recently signed contracts with Post Office Ltd. for the provision of the new card account at Post Office. This is a commercial arrangement for the provision of a service and does not constitute direct funding. The precise value of the contracts will depend on the number of card accounts.

The main UK high street banks and the Nationwide Building Society have together agreed to contribute a total of £180 million over five years towards the costs of the new card account at Post Office. They have also agreed to make their introductory bank accounts accessible through post offices.