STRUGGLING post offices could face closure following a Government "clanger" that threatens their future, it was claimed.

National Post Office leaders joined subpostmasters in York and North Yorkshire in a chorus of criticism at the decision not to renew a crucial £1 billion contract.

The Department for Work and Pensions (DWP) has decided to change the way benefits can be withdrawn.

That means using a post office account card to draw your pension over the counter would be made obsolete after the current DWP contract expires in 2010.

Colin Baker, general secretary of the National Federation of Subpostmasters, said he felt "devastated and betrayed" by the announcement.

Mr Baker, speaking to the Evening Press from the federation's headquarters in West Sussex, said: "The Government has dropped a clanger here. There are thousands of post offices already struggling, and to take away this tranche of work will just destroy them.

"It's not just the money, it's the footfall too. Because they are viewed as community lynchpins, particularly in rural villages in North Yorkshire, post offices are surrounded by a cluster of other shops, keeping cash in the community. If you take the post office out of the community, the community dies."

But according to the DWP, three-quarters of customers already have their benefits paid into bank accounts, which can be accessed directly over a post office counter.

Susan Greenwood, subpostmistress at Copmanthorpe Post Office, said the loss of the DWP contract would be damaging, not just for post offices, but also for customers and communities.

Mrs Greenwood said: "More setbacks for post offices would be a real blow for many communities. If business dropped and post offices were forced to close, where else would people go? They may not be able to walk very far, don't have their own transport, and might have trouble catching the bus.

"A post office is a necessity for a community. People come and meet and chat. I keep getting asked to buy a coffee machine and put a table and chairs in so they can stay a bit longer."

Amanda Haigh, subpostmistress at Kirby Misperton, near Pickering, said: "About 50 per cent of our customers have card accounts. Unfortunately, it looks like they will just have to get used to a bank account. The world moves on - but it will be a big hassle for many people."

Council demands Government rethink

THE new threat to York post offices has been attacked by Coun Andrew Waller, City of York Council's deputy leader.

He said the implications of the Government's decision to withdraw £1 billion in business from the Post Office meant "more will face closure, as the Government decides not to continue with pensions and benefits account cards".

Coun Waller said: "There is no doubt this decision will threaten York's post offices. Seven post offices closed in York last year, and we were promised the rest would stay open.

"Yet this move by the Labour Government is a clear death knell for many more. For many people, the post office is a vital part of the community. The loss of these facilities damages local shopping areas.

"Local community services need support, and I urge all local MPs to lobby the Government to rethink this."

ANTHONY POULIQUEN asked shoppers in York for their views on the Government plans:

Yvonne Magee, 23, a hotel assistant manager of York, said: "I don't think this is a good idea. Concerning the pensions, I think that's a wrong thing to do, but what can we do against it?"

Carol Flint, 54, of York, (pictured on the left) said: "Old people and mothers with young children need to go to the post office. They should leave the local offices open for local people."

Gordon Gowlett, 65, retired, of Norton, said: "It's a shame. People should be able to get their pensions at the post office. Some old people don't even have a bank account."

Updated: 09:17 Saturday, January 21, 2006