Government proposals for the Post Office

Commenting on the Government's proposals for the Post Office's financial services provision, Kevin Mountford, head of banking at moneysupermarket.com, said:  "There have been rumours that the Government would help create a ‘people's bank' for the past two years, and now it seems this talk has some substance behind it.  The promise of the Post Office offering simple, good value products to suit lower income households should be welcomed with open arms; many of these people have been hit hard by the financial crisis and have seen some of the major banks turn their backs by restricting lending of any sort.  And at a time when banks and building societies have been merging and shutting branches increased competition on the high street is a cause for celebration.

"The Post Office, via its product provider Bank of Ireland, already offers competitive deals on savings and mortgages, so a move into current accounts and children's savings accounts is a natural extension. The proposal for a weekly budgeting account is a fantastic idea, we welcome any move in which providers aim to help their customers manage their finances better.

"The Post Office maintains an active role in every region of the country, so expanding this important branch and community network to help the public manage their finances is a bold and helpful move for consumers, especially for those in greater financial distress. The Post Office has built up a great deal of trust with much of the public over its long history, and I expect many will fully welcome this move, especially as our research shows 14 per cent of people don't currently trust any large UK company to look after their finances.

"It is extremely rare for consumers to be consulted on the launch of new products and services, and so they should seize this opportunity to make sure their voice is heard."