Friday, 14 November 2008

DWP Awards Benefits Card Account To Post Office

This is good news and is belated recognition that post offices are part of the fabric of society, like public libraries and the NHS.
However, I'm puzzled how the DWP were able to terminate the procurement process midstream, albeit with significant bidding compensation to Paypoint (just like the £5million Virgin got in the failed Northern Rock privatisation), and hand the contract to 2015 to the Post Office. I thought that the EU Procurement Directive banned practices like this. As always where the EU is concerned, please go to EUReferendum to get the definitive answer. Forelock tug to Dr North. It would appear that governments can ignore EU law at will.
On a personal note, I remember the time spent in the Job Centre by everyone encouraging customers to open a basic bank account or a Post Office Card Account in the months before giros were phased out. I'm glad that effort hasn't been wasted.


James Higham said...

Gyros aren't completely out, I can report but they are certainly not in favour.

Gallimaufry said...

James, true. We used them at the end for emergency payments and for people with no fixed abode who couldn't qualify for even basic bank accounts or PO cards. I recall that each giro cheque cost £1.04 to produce compared to a fraction of a penny for a bank transfer.

2345 said...

Nulabor's focus is the next election, hence the U-turn ... it uses or flouts EU laws to suit it's own ends.

It happily ignored public outcry with all those closed to date.