THOUSANDS of sub-post offices across the country kick off the new year with a lifeline for the future.

Last week, high street banks agreed with the government's proposals for a Universal Bank account to be held at the Post Office allowing customers to continue receiving benefit payments in cash by presenting a plastic card across the counter.

It was also agreed that existing high street bank accounts could also be accessed via post office branches using a similar system.

The move is in response to the growing concerns of sub-postmasters who feared for their businesses and customers once automated credit transfer to bank accounts replaced the present benefit book system.

It was hailed as very good news for the future of the network by the Post Office, but the Federation of Sub-Postmasters remains cautious.

Mrs Jean Kendall, federation national executive officer and sub-postmaster at Wolsingham post office, told the D&S Times that plastic was not welcomed by all.

"A lot of older people know where they are with a docket and cash and can work out all their bills and savings. My fear is that once everything gets paid into a bank account, the ability to pay bills in cash will go and direct debit will have its day.

"I know we have to move with the times, but do we have to force this on all our 80 and 90-year-olds?"

Mrs Kendall is also concerned that if government estimates are correct and 85pc of their customers already have bank accounts, then this system allows weekly benefits to be accessed anywhere.

"The government is still pressing ahead with automated credit transfer and this new card system means that people will be able to pick up their money just about anywhere.

"Our worry isthat people will not have to come into their local post office any more for any pension or benefit payments."

The new Universal Bank system will see payments made automatically into a Post Office account for those without existing accounts.

Customers will then give the cashier a plastic card to gain free access to their cash at the post office counter as well as being able to pay bills directly from the account.

For customers with their own bank accounts, the plastic card offers free access to cash at the counter and at the bank's own branches as well as cash at hole-in-the-wall machines and direct debit facilities.

Mr Basil Larkins, managing director of network banking for the Post Office, said: "Universal Banking services will turn post office branches into everyone's bank branch whether customers are using one of the bank's own basic accounts or the new Post Office-based account.

"We are absolutely delighted that this agreement has been reached."

Negotiations are continuing but accounts are expected to be available by the end of 2002