The Post Office has been awarded the contract to continue providing the Post Office Card Account (POCA), Secretary of State for Work and Pensions James Purnell announced today.
The Government announced in December 2006 that there would be a successor to POCA, and a tender process was started.
However, in order to support a viable Post Office network, the decision has been taken to cancel the competitive tender. Consequently a new contract has been awarded to Post Office Ltd. The contract will run initially from 2010 to March 2015, with the possibility of an extension beyond that.
Secretary of State for Work and Pensions James Purnell said:
"I firmly believe that this is the right decision for our customers, the Post Office and sub-postmasters.
"The Post Office is a cherished national institution at the heart of many communities. The card account is an important source of income, and brings customers through the doors of Post Offices across the country.
"Global economic events have made people, particularly the most vulnerable in our society, more concerned about financial transactions. The Post Office is a trusted brand, and is seen as a safe, secure and reliable provider of services in these turbulent times.
