The Labour Government’s plans to scrap the pension book and replace it with ‘direct payments’ have been criticised by Jo Swinson, East Dunbartonshire’s Lib Dem Parliamentary Spokesperson.
The plans could mean that the post office network loses up to 2,850,000 customers, as people will collect their pension at banks and building societies. This will rob the post office network of vital income, as they receive a fee for processing each benefit payment.
Many pensioners have reported being talked into signing up for new bank accounts and internal Government documents reveal that staff are under pressure to push to customers into taking this ‘cheap’ option.
Local campaigner Jo Swinson said:
“Millions of pensioners chose to have a pension book – in Scotland that’s more than 200,000 people. The Government’s plans are driven by cost-cutting and not what is best for pensioners. Many pensioners are comfortable with what they know and have no desire to change. It is not too late for the Government to think again and allow pensioners to hang onto their pension books.”