THE Government has been accused of deliberately discouraging people from setting up new-style accounts for pensions and benefits - jeopardising the future of scores of Worcestershire post offices.

Ministers wants to tackle millions of pounds of benefits fraud by paying state handouts directly into a bank, building society or post office accounts, instead of the traditional over-the-counter method. But MP Martin O'Neill, chairman of the powerful Trade and Industry Select Committee, said the red-tape involved in opening a Post Office Card Account (POCA) was "unnecessary, complicated and confusing".

Pensions Minister, Malcolm Wicks, said if more than three million people wanted POCAs, it would be necessary to "re-open discussions with our friends in the Treasury" to cover the cost.

Scrapping pension books and giros would tackle £80 million worth of benefits fraud, Mr Wicks told MPs yesterday.

But the Select Committee, which is investigating direct payments, said making it more difficult to open POCAs would encourage vulnerable claimants to set up bank and building society accounts.

Mr Wicks denied the claim. He told MPs: "I'm not convinced it is so complicated."

But David Millar, the Post Office's chief operating officer, contradicted this, saying: "The process could be easier."

Royal Mail chiefs claim the Government's new direct payments system could lead to the closure of about one-third of Worcestershire's urban post offices.

Have you had trouble opening a post office account? Let us know by writing to: News Desk, Worcester Evening News, Hylton Road, Worcester, WR2 5JX.