PEOPLE on pensions and benefits could find themselves without access to cash when Post Office Card Accounts are abolished.

That is the fear of Malvern town councillor Pat Merrick, who says it could also cause post offices to close.

POCAs were introduced some years ago to replace pension books. Users have pensions and benefits paid into their accounts and can withdraw cash using their cards.

But the government says POCAs will be phased out by 2010 and is cutting down the number of users.

New pensioners will not be given card accounts and will have money paid directly into bank accounts. Existing users will be strongly urged to have money paid into bank accounts.

"It's a disgrace," said Mrs Merrick. "This will mean inconvenience and cost to a lot of people, if they have to come all the way to a bank instead of visiting their local post office.

"I go to Barnards Green Post Office because my bank is right at the top of town and very difficult for me to reach.

"And what about people who haven't got a bank account? What will they do?"

Barnards Green sub-postmaster Dave Stephens said post offices could be in danger because of the loss of trade. "If this goes ahead, I'm really frightened for the future," he said.

Department of Work and Pensions spokesman Simon Ballinger said POCAs were only ever an interim measure introduced to get pensioners used to having accounts.

"People will be able to access their High Street bank accounts via the post offices, so the post offices will still have a role to play," he said.