We've been waiting to hear the government's grand plans for a new Post Office bank with much anticipation. They'd promised 90% first time buyer mortgages and accessible current accounts. Unfortunately, however, it wasn't to be.
Postal Affairs minister Ed Davey today quashed plans for the promised state-backed 'people's bank', dismissing it as an expense that the government could really do without.
However, while this is undoubtedly a shame, his announcement did contain some revelations that will help to soften the blow.
For starters, he confirmed that the government won't be rolling out a new closures programme. Instead, the 11,500 Post Office branches currently in operation will instead be revamped so as to become a front-line for government services.
Advice on everything from pensions to job seeking will be available, and IT services will be improved to reduce queuing times.
Better still, 80% of banking customers will soon be able to access their bank accounts to check balances and make withdrawals over the counter at Post Office branches. RBS and Natwest are currently working with the Post Office to implement this convenient link "as soon as possible", while a number of other banks already have this facility available.
HSBC and Santander are the only 2 banks that haven't yet signed up to this tie-in service, but apparently the government are working to persuade them!
The Post Office branded savings and insurance products provided by the Bank of Ireland will continue to remain available and the grand plan is for this offering to be eventually expanded through a possible tie-in with credit unions.
Ultimately, however, the government's aim is to turn the Post Office into a mutual, owned by employees and communities - presumably to save money although there will be perks for the 'people' too.
Whether they'll change their mind again before this comes into fruition remains to be seen!
