Unite expresses concern and disappointment with the government's decision to award a benefits payment contract to PayPoint

Thursday, 3 March 2011 12:00 AM

Unite, the UK's largest union, has expressed concern and deep disappointment at the decision of the Department of Work Pensions (DWP) to remove a £20m-a-year contract from the Post Office.

The DWP decision to award the benefits cheque service or 'Green Giro' to PayPoint will have an adverse effect on post offices and will contribute to the closure of more post offices.

Unite believes that the government should be ensuring that the Post Office continues to provide a range of services and that those should be increased to ensure their ongoing viability.

Paul Reuter, Unite national officer, said: "This is another example of a disjointed government playing fast and loose with the network of post offices across the country.

"The removal of the 'Green Giro', itself a lifeline to those 350,000 people that have a desperate need for it, from the Post Office is another death knell for the sustainability of post offices. This decision will particularly hit those in communities where post offices are a fundamental part of society.

"Unite calls on the government to review this decision and to be more consistent and co-ordinated in its approach to the Post Office and the services it wants it to provide. This announcement will have an extremely negative overall impact on the future of the network."

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For further information contact Ashraf Choudhury in the Unite press office on 020 7420 8914 or 07980 224761.

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