A SUB-postmaster says his business will go bust if government plans to switch welfare payments to banks and building societies go ahead.

William Aspin, 52, of West End Post Office, Blackburn Road, Oswaldtwistle, said that he, along with many post offices, would lose around 40 per cent of income.

The Government is encouraging people claiming benefit to have their cash paid directly into their bank accounts and, from 2003, the Benefits Agency will be paying money directly into banks and building societies.

The change in the way benefit cash is paid out is part of a multi-million pound cost-cutting exercise.

It is also feared that moves to computerise the Post Office Counter Network by the spring of 2001 could lead to many closures of village branches.

Mr Aspin, who is married to Maureen, 53, and has one son, Billy, 32, said: "We will lose 40 per cent of our revenue and no small business can afford to lose 40 per cent of revenue and carry on. "We will have to close. It is simple as that, and I would have to look for something else.

"That is going to be the case for the majority of post offices.

"When post offices close there is going to be a knock-on effect and the impact on society will be horrendous."

In December, the Lancashire Evening Telegraph revealed that more than 130 post offices across East Lancashire were threatened with closure because of the proposals.

The threats of closure are contained in figures from the Department of Trade and Industry Secretary Stephen Byers which show that 134 East Lancashire post offices are now at risk.

The figures show that in Hyndburn 20 out 22 currently see at least 40 per cent of their business through Benefits Agency transfer.

A nationwide campaign has been set up with the National Federation of Sub-Postmasters encouraging sub-postmasters to start petitions and make customers aware of the dangers.

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