MORE than 5,000 pensioners in Swindon will face difficulties accessing their money if plans to abolish Post Office card accounts go ahead.

Figures have revealed that the pensions of 5,500 older people in the town are paid into the accounts.

They were set up to allow the secure payment of pensions and other benefits, replacing the old system of booklets and cash over the counter.

But the Government has announced that it is to axe the scheme in 2010, arguing that it was only designed as a temporary measure to encourage pensioners to open bank accounts.

Ministers have insisted that the majority of people now have their welfare benefits paid directly into their accounts.

Statistics released by the Department for Work and Pensions demonstrate how reliant pensioners are on Post Office card accounts.

Pensions are paid into 2,900 accounts in North Swindon, 2,600 in South Swindon and 2,900 in North Wiltshire.

The figures were revealed as the Government faced Tory claims of kicking pensioners in the teeth by ending the scheme.

In a Commons exchange, Deputy Prime Minister John Prescott admitted that it was "a matter of some concern". But he said that anybody who wishes to collect their pensions from a Post Office would be able to do so.

Mr Prescott told MPs: "There are many pensioners, of course, who have an awful lot more money now to put into bank accounts, but it is a problem.

"More and more are changing to the bank account but if we look at the changes that are taking place and being discussed with the post office authority we will come to a better conclusion nearer the end of the time." He added: "I'm told by the Post Office that they are in fact developing other new banking products for their customers and some of these will be available for the existing Post Office Card Account members.

"Actually having a transfer to the bank accounts can sometimes mean to the individual a greater rate of interest than on the Post Office card account."

But Age Concern condemned the move.

Jo Osorio, director of Age Concern Swindon, said: "The withdrawal of the post office account will put even more pressure on smaller post offices who may have difficulty to maintain their overall business.

"More than 5,000 Swindon pensioners rely on these accounts at present and there's no reason to assume the position will be much different in four years' time."

"This is like a kick in the teeth"

POST offices in Swindon will be badly affected if plans to abolish card accounts in four years' time go ahead.

That is the view of Laura Brunetti, of Queens Drive Post Office, who says that the Government's plans are a slap in the face to all sub- postmasters and mistresses.

"Sub-postmasters and mistresses make a significant investment in their businesses to serve the community and we have been doing that for years.

"So for the Government to make this change is like a kick in the teeth.

"People rely on their local post office and if we are gone it will have a terrible effect on the community."

And Jugdish Patel, postmaster at Gorse Hill Post Office, in Cricklade Road, said that the closure of Post Office card accounts would have a big impact on his business.

He said: "We are concerned about it. If these accounts are closed pensioners are not going to come in and spend their money on other things in the shop.

"We have tried to retain our customers when they replaced the old system, but this is a second blow."

It is a point acknowledged by Susan Budd, sub-postmistress at Purton Post Office in the High Street, Purton.

"We have quite a few elderly customers and many of them don't want to go into town to go to the bank," she said.

"If these card accounts are closed it is going to cause lots of problems.

"Pensioners are not being looked after properly and neither are we."