Customers today hit out at plans for a new benefit payment system that could see the demise of thousands of urban post offices.

Part of a new Government shake-up of the service will see sweeping changes in the way benefits are paid.

This new streamline approach to payments could bypass the post office completely with benefits sent straight to the claimant's bank account.

This could lead to a 40 per cent loss in custom for many postmasters whose wage is calculated on the number of people they serve.

There are also plans to axe another 3,000 urban post offices over the next three years as part of the network reinvention scheme.

It is also feared these closures could have a knock-on effect on other small businesses by taking away a large part of their customer base.

Pensioner Beryl Brewer, 71, of Oak Road North, Hadleigh, said: "I haven't got a bank account and neither has my husband and I would be very upset if our local post office closed.

"I have been happy to use my pension book since I was 60 - I don't want it put into a bank."

Owner of Smith's Butchers, Mike Smith, 54, in Woodfield Road, Hadleigh, felt his business would suffer if the post office located next door was to close.

He said: "It would definitely affect me. Locals go and get their pensions and then come and get their meat."

Joan Fitzjohn, 77, from Seymour Road, Hadleigh, said: "I think it is stupid how they keep changing things and I am disgusted at the way smaller post offices have been closing."

Published Wednesday, February 5, 2003

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