GOVERNMENT plans to pay pensions and benefits directly into bank accounts could have serious consequences for the future of Winsford's post offices.

The new scheme comes into effect next month and The Royal Mail has already warned that 3,000 small urban post offices could shut down across Britain.

Payment of pensions and benefits by order book and giro cheque currently makes up more than a third of the post office network's income and there are fears that without this cash many post offices will be forced to close.

Although residents can still apply for a new card account at the post office, the Association of Sub Postmasters is concerned that people are being forced into opening bank accounts and discouraged from opening the post office card accounts.

Jenny Collins, postmistress at Meadowbank Post Office, says the Government has not been clear on how the new plans will affect both post offices and those collecting their benefits or pensions.

She said: "I am not a member of the association but I should think this is going to have an effect on us. My lease comes up for renewal next year and I don't know what will happen then.

"The pensioners come in here to pick up their pensions. One of my customers has opened a Lloyds bank account to get her pension paid straight in.

"It is quite confusing and when it is up and running it's going to be even more confusing - pensioners will need to remember their PIN numbers and I think they were quite happy with the way it was.

"The Government never asks people like us about things like this. It just seems that what they say goes."

rfraser@guardiangrp.co.uk