Post Office banking given £180m funding

Tuesday, March 30th 2010

The Post Office is to expand its financial services and get new government funding, business secretary Lord Mandelson announced yesterday (March 29th).

Some £180 million in funding will be given to the Post Office and banking with the institution will see a large expansion.

Mr Mandelson said: "The Post Office is a well-loved community institution and this move will bring more banking services back to the heart of those communities."

Among the services will be a current account facility that any of the 11,500 branches in the country will be able to access.

During the next year there will be a children's savings account scheme launched so that the younger generation can visit their local branch and save money there.

According to business minister Pat McFadden, the Post Office will become more sustainable as a result of feedback from many Britons.

The Royal Mail claims that the Post Office network is facing "unprecedented challenges" at present, one of which is the government's withdrawal of the Card Account - used by 4.5 million people.