PENSIONERS have been reassured that they will still be able to get their pensions in cash from the Post Office - despite big changes to the benefits system.

Following a major shake-up, more benefits, including the state retirement pension, will be paid direct into people's bank accounts.

But the reforms, known as the Horizon project, will involve the provision of more banking services through Post Office branches.

Government whip and Hyndburn MP Greg Pope said he had been contacted by many elderly constituents worried that they would not be able to collect their benefits in cash as they always had done. He said: "Many people are concerned that they will no longer be able to get their pensions or benefits from Post Offices.

"However, I can assure them that the government is committed to choice and people will still have the option of collecting their full benefits in cash from the Post Office if they want to do so.

"The government fully recognises the importance of Post Offices. In many areas they are a focal point in local communities, particularly for elderly and less mobile people.

"The number of Post Offices in the country means that the public have readier access to them than to any other commercial organisation.

"Computerisation will help the Post Office link up with the banking system and offer a range of services which will be widely welcomed by everybody, particularly as some major banks are closing their small branches."

Mr Pope went on to say that from 2003, the government was planning to start paying pensions and benefits using the automated credit system.

He said the system would reduce red tape, provide security against fraud, cut costs and widen the services available.

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