ALMOST 700 jobs are to be created in the region after the Government announced that two new offices are to be established in the region for the Pensions Service.

Work and Pensions Secretary Alistair Darling announced yesterday that York and Seaham, east Durham, will be among the venues for 26 new national pension Service centres.

The centre in Seaham is to be built at Lighthouse View, on the Dawdon Business Park, and is estimated to need 380 employees.

While many of these will already be Government staff, it is hoped the rest will be drawn from local communities.

The York centre, to be based in a new 30,000sq ft office development in the Monks Cross area, is expected to create more than 300 jobs.

Last night, the Labour MP for Easington, John Cummings, welcomed the news.

"I'm delighted that the Government has acknowledged the value of Enterprise Zones, such as Seaham's," he said.

"Seaham is an area of high social deprivation, so the Government expressing confidence in it gives a great boost.

"It is another example of the Government having faith in the North-East."

York's Inward Investment Board worked with local developers to bring a pensions centre to the city, and Labour MP Hugh Bayley pressed its case as an obvious choice.

He said: "The new service will deal with pensioners' problems over the phone and if it is necessary and what the pensioner wants, a member of staff will be able to call in to see them at their home.

"As well as pensions, the new service will deal with other benefits for older people, like the attendance allowance. York will benefit, and so will the pensioners, because York is good at providing high quality public services. It is York's reputation and the high quality of York staff which enables us to keep winning new jobs."

Both centres are being set up to coincide with a change from central control of pensions, under the Benefits Agency, to local authority involvement.

Mr Darling said: "From 2002, the Pension Service will provide a local national network, working with local authorities and voluntary organisations to provide a high quality service for pensioners by whatever means of contact they prefer - telephone, Internet, post or face-to-face."

Ian McCartney, Minister for Pensions, said: "The Pension Service will treat pensioners as people."

There is already a pension centre in Newcastle.