MORE than 130 post offices across East Lancashire are threatened with closure amid moves to switch welfare payments to banks, it was revealed today.

The Government is encouraging people claiming benefit to have their cash paid directly into their bank accounts - which would remove vital business from post offices.

Today a sub postmasters' leader voiced his concern over the moves and said post offices depended on Benefit Agency transactions for a substantial part of their incomes.

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

The change in the the way benefit cash is paid out is part of a multi-million pound cost-cutting exercise, but it could mean many claimants bypassing sub post offices.

The new figures show that in Blackburn 18 of the town's 26 post offices depend on Benefit Agency transfer for at least two fifths of their work.

In Burnley 26 out of 28 post offices are vulnerable, while in Hyndburn 20 out 22 currently see at least 40 per cent of their business through Benefit Agency transfer.

In Pendle 23 out of the 31 post offices are under threat and in Rossendale and Darwen ten out of 18 could also close. In the Ribble Valley 16 of the area's 35 post offices are at risk.

Nicola Nicholson, a spokesman for Post Office Counters in Manchester, said: "We are discussing this situation with the government because one third of our business is benefit payments and this will have a major impact on post offices.

"We are obviously committed to protecting our network."

Mike Rigby, the East Lancashire branch secretary of the National Federation of Sub Postmasters and who also runs Barrowford Post Office, said: "This could be very serious for post offices in East Lancashire.

"Benefits make up more than a third of the business for many post offices and there is no word on whether or not they will get anything to replace that business.

"We are obviously watching the situation very closely."

Post master Paul Jackson, who runs the main post offices in Nelson and Colne, said: "People nowadays use bank accounts and it's a natural progression for them to want their money paid into the bank.

"Over the last ten years there's been a massive change in the Post Office's core business and they have progressed with the times and diversified into other areas to keep the income coming in."

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