JOHN Beirne claims Government proposals for child benefits and pensions to be paid directly into people's bank accounts, could force up to 40 post offices in St Helens to close.

The Liberal Democrat councillor for Marshalls Cross said: "This is about freedom of choice and a Government that won't listen. We are going to present a huge petition to try and stop this, along with letters of support from all over the country, when it is debated at Westminster in April."

If accepted the proposals, which the Government claim will be more cost-effective, are due to be implemented over a two-year period from 2003. However, it is estimated that this could put more than 8,000 post offices nationwide in danger of having to close.

A spokesman for the Benefits Agency told the Star: "There are proposals, currently at the planning stage, for a Payment Direct System in which child benefits and pensions will be paid into bank or building society accounts. Following extensive consultation with the public, 54 per cent of people receiving child benefit and 49 per cent of pensioners said they would prefer this method. "The Post Office has been kept informed of the proposals and there is also no question of anyone being forced to open a bank account. Each case will be judged on merits and some people may still be able to continue collecting benefits from the Post Office."

Hugh Morgan-Jones, executive officer with the National Federation of Sub-Postmasters, said: "We have already had a lot of feedback from local customers, the vast majority of whom are completely against the Government's plans and we agree with them. They will put thousands of post offices at risk. Basically, the Government are proposing to take away between 30 and 40 per cent of a post office's disposable income. If that was someone's salary, how could they cope with that? It also means our customers are inconvenienced by having to travel into town to visit a bank and a lot don't even have an account with a bank.

"The Post Office is an institution and we are determined to put up a fight for it. The public demand it and we agree with them."

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