THE death knell could soon sound for Craven's rural post offices if the Government's plan to alter the way benefits payments are made goes ahead.

The intention is to have all benefits payments paid straight into bank accounts rather than being able to collect them in cash over the post office counter.

Local councillors are spearheading a campaign to stop the proposals and have organised a petition.

Leading the campaign for the North Yorkshire County Council Conservative Group is County Coun Shelagh Marshall.

Coun Marshall represents areas of Upper Wharfedale, Malhamdale and Embsay with Eastby. In her ward, there are just five rural post offices in existence.

She said: "The Government says that it is to conduct a top level study into the future of the post office network but this is too late and not enough. It should publicly withdraw its plans now.

"The needs of small towns and villages and the people who live in them never seem to be taken into account by this Government.

"We hope that we can persuade the people in our villages and the sub post offices around Skipton, Settle, Ingleton and Bentham to lend their support. Only people power can change a government's mind," she said.

Petition forms are available from local post offices or opponents can use the Save Your Post Office form on the front page of the Craven Herald.

Colin Baker, general secretary of the National Federation of Sub Postmasters (NFSP) added that the Government's proposal was also taking away the choice people had to receive their benefits straight into their hands.

"The problem with bank accounts is that if the account is overdrawn, that pension or child benefit money goes towards reducing it. Though some people have already chosen to have it paid into their bank, many more still prefer to have the cash so they can give their child dinner money."

He said the new measures would also take away the payments made to sub postmasters thus reducing their income. Instead of paying the sub postmaster around 40 pence per transaction, the Government will pay the bank just one penny.

Chris Davy, who has run Grassington Post Office with his wife, Debbie, for the past two-and-a-half years, said the switch to paying benefits into banks or automated credit transfer (ACT) would seriously affect his business.

"People will not use the village post office as much if they have to go into town to draw out their money. They will probably do their shopping in town whilst they are there which will put a strain on other village businesses," he said.

"It is envisaged that if the plans do come into force it will see 7,000 sub post offices closing throughout the country," he added.

But Labour MP for Pendle, Gordon Prentice, said the Government recognised the fact that post offices were a vital part of many local communities.

He said: "The Government's proposals outlined in the Post Office White Paper to let the post office keep more of its profits and to allow it to borrow will enable it to provide new services and features that will help to modernise it and therefore build up new business for the network."

Mr Prentice added that in addition the post office was installing 3,000 cash machines in post offices as part of its drive to re-introduce banking services in rural areas.

But Mr Baker said 3,000 cash machines would not go very far to serve the 18,000 post offices currently in the country.

Other local councillors working for the campaign are County Coun Irene Greaves, Coun Tim Cole, and Coun David Ireton.

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