The People\’s Bank

I\’ve never had any objection to the creation of this People\’s Bank that so many on the left aseem to have their hearts set on. Simple, low cost banking for the poor? Sure, why not?

Millions more people on lower incomes will be able to open a bank account….. and qualify for cheaper direct debit fuel tariffs under government plans being unveiled today to turn the Post Office into the \”People\’s Bank\”. The government also wants it to reintroduce a children\’s savings account.

Sounds good to me.

However, I took a few words out of that:

get a mortgage

Erm, are we really convinced that those on very low incomes should be even trying to get a mortgage? Recent events would seem to indicate that not everyone is actually ripe for home ownership, to put it at its mildest.

And I can see all sorts of fun with this:

Under the plans, the Post Office would provide a special direct debit service, targeted mainly at people dependent on benefits. This would make it easier for them to get cheaper online services and tariffs for electricity and gas, rather than paying for more expensive pre-payment meters. The service would set aside a portion of the user\’s benefits each week to make sure there was enough in the account at the end of the month to cover direct debit payments.

Really? We\’re going to have the Post Office monitoring those millions of new accounts in that sort of detail?

4 comments on “The People\’s Bank

  1. “We’re going to have the Post Office monitoring those millions of new accounts in that sort of detail?”

    Would be fairly trivial to do automatically. Whether or not your bank should decide how to spend your money is another matter, of course. But it might, in practice, be a reasonable compromise for people who need a stepping stone to financial credibility.

  2. Andrew.

    Ah Girobank of blessed memory.

    Yes, I worked for it once. It really wasn’t very good and that’s why it was sold off to Alliance and Leicester.

    My General Manager owned and drove a Lada and thought it befitting of his status.

    The business banking reps who were meant to negotiate with CEOs of major corporates were allowed company cars – base model Cortinas maintained by the Post Office Garages and, when over three years old, exempt from an MOT.

    When I organised a major opening of the Midlands Regional office I was berated by Edwina Currie, the a Birmingham City Councillor, for extravagance – we gave guests a blue plastic credit card wallet.

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