TENBURY Post Office could close if across-the-counter payment of pensions and benefits is handed over to banks and building societies.

Local post offices depend upon pensions and social security pay-outs to keep afloat and Tenbury's post-master, Malcolm Chase, is an angry man.

He said: "Much of our income depends on these payments and if we lose them we may as well shut up shop. Big grants are being offered to improve the quality of life in Tenbury but what good will it do customers who need our services?

"Our customers may think they must have their pensions and benefits paid into a bank or building society account. This is not true, they can still have them paid over the counter in cash, if they complete the appropriate form, but this has not been sent to them."

By April 2005, the Government wants all benefit books replaced by direct payment and expect all 14 million people on benefits to be in the scheme. There is also a Post Office account with a swipe-card for getting benefits in cash at any post office.

However, a pilot scheme in Tyne and Wear has backfired and customers are flatly refusing to return their benefit books. This has forced Post Office director, Graham Halliday, to backtrack and announce: "The Government wants people off benefit book payment in favour of direct payments but we do recognise that for some people Post Office Card Accounts are not suitable and we will be introducing an 'exceptions service' but details have yet to be sorted out."

Tenbury councillor George Price is calling for the local post office to be saved.

He said: "Saving our post office is imperative for the town, livelihoods and vital services are at stake. Call me cynical but it does make you wonder what the Benefits Agency is up to In the package sent to people to nominate a suitable account to pay into, they failed to include the form for continuing with cash payments. I urge everyone to bin it until they receive details for keeping on with payments at the Post Office," he added.

Meanwhile, Malcolm Chase added: "I am appealing to everyone in the Tenbury Wells to back us to the hilt and keep us going."