SEVEN people have been arrested after police and benefits officials launched an inquiry into an alleged fraud at Nelson Post Office.

The town centre post office, in Manchester Road, was closed on Thursday but re-opened yesterday morning with an interim sub postmaster in charge.

Police today refused to confirm whether the existing postmaster was among those arrested but confirmed that the Department for Social Security was continuing the probe.

The investigation has also involved the Department for Works and Pensions.

A spokesman for the department said: "We cannot discuss on-going inquiries, however, any suspicions or allegations of abuse of the benefits system will always be thoroughly investigated."

Sergeant Louise Darcy said: "We assisted the DSS and Consignia in their inquiries about certain matters in relation to the post office in Manchester Road on the junction with Scotland Road.

"Seven people were arrested for suspicion of deception and taken into custody in connection with the allegations.

"Nobody has been charged with anything and the DSS are continuing to investigate." The seven people have been released on police bail.

A spokeswoman for Consignia said: "The post office re-opened to the public on Tuesday morning.

"It was closed while an internal investigation was carried out. We apologise to customers for any inconvenience which the unforeseen closure may have caused.

"It has re-opened as normal with an interim sub post master."

Betty Holden, 61, of Sansbury Crescent, Nelson, said she made her way to the post office on Monday and the found it was closed.

"I came all the way down to collect my pension. I was told to come back at 11am on Tuesday but that wasn't any good because I needed it there and then.

"I had to go to Leeds Road Post Office and collect it from there. A post office shouldn't close down, especially not a busy town centre one which is used by a lot of people."

And Robert Hill, 49, of Farrer Street, Nelson, said: "There are a lot of elderly people who use this post office who would have had to walk a long way to collect their pensions."