PENDLE MP Gordon Prentice today hit out at government plans to change the way benefits and pensions are paid and said it could almost halve the income of East Lancashire's sub-post office staff.

Mr Prentice reassured local sub-postmasters and postmistresses that he is doing all he can to protect them at a time when the government is looking to make payments through credit transfer to banks.

Mr Prentice said people working in local sub-post offices have raised their concerns about the future with him and that the latest announcement comes at a time when sub-offices have been closing at an alarming rate.

He said: "The government wants benefits and pensions to be made by automated credit transfer, but not before 2003 and anyone who still wants to draw benefits in cash from their local post office after then will still be able to do so.

"However, the post office estimates that sub-offices could potentially lose 40 per cent of their income if lots of people stop coming through the door - so it is clearly a big issue that needs to be addressed."

The MP continued: "Since 1990, 756 have closed and before that 389 shut up shop for good in one year alone.

"If that's not bad enough, for years now banks have also been closing branches in towns and rural areas. I want to see post offices fill the banking gap."

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