The manifesto also pledged:

‘In the post-crisis economy, we will fight for consumers and stand up to vested interests that treat people unfairly, whether in the private or public sector. We want a fair deal for all.

‘…We will introduce a universal service obligation on retail banks, so that all consumers with a valid address have a legal right to a basic bank account, and a right to redress if this is refused. Banks will have to publicly report on the extent to which they are under-serving communities.

‘And we will introduce a new levy on the banks to help fund a step-change in the scale of affordable lending by third-sector organisations, including a new partnership with the Post Office, offering an alternative to loan sharks and high-cost doorstep lending.’

Consumer Focus commented on “There are almost the same number of post office branches (11,923) as bank and building society branches combined (12,270). There are 6,566 post offices in rural areas. Source: Post Office Ltd, British Bankers Association

Research conducted for Consumer Focus by ICM developed a blueprint design for a ‘custom’ bank account based on what low-income consumers said they wanted from a banking product.

The product incorporated principles considered as essential by the low-income consumers surveyed, including convenient access, simplicity and control.

It was designed to offer a viable alternative to both POCA and existing basic bank accounts. The account differs from

POCA as it would allow consumers to receive inward payments such as wages, access cash from any ATM and have debit card functions

According to the research, seven out of ten (71%) of the financially excluded – those with no bank account or a Post Office Card Account (POCA) – said a new, easy to use product offered through the PO would suit them better than their current arrangements. 72% said they would consider opening such an account if it was offered at the PO 1.75 million adults do not have access to a transactional bank account (source; HM Treasury).

These groups struggle to access a range of mainstream financial products, which imposes real costs on individuals and their families. For example, they may be more likely to pay additional costs because they are unable to use electronic bill payment methods, or pay for goods and services on the Internet”

Lord Mandelson Business Secretary today announced an extra round of funding, in the region of £180 million, which will mean expansion for the financial services section of the Post Offices.

The Business Secretary commented “Since the global banking crisis we have set about reinventing the financial services industry piece by piece, building a system that is fairer, trusted and more responsible. Today is the next step in that process.

The Post Office is a well-loved community institution and this move will bring more banking services back to the heart of those communities.”

Negotiations with RBS and Santander are looking to service the current accounts and this will mean that roughly 90% would be accessible at Post Office

Lord Mandelson commented “Since the global banking crisis we have set about reinventing the financial services industry piece-by-piece, building a system that is fairer, trusted and more responsible.”

The Times commented don this news with the following – “Since 2003, when the Government and the industry established a Financial Inclusion Task Force, the number of adults in the UK without a bank account has fallen from 3.75 million to 1.75 million.

About eight million adults have a basic bank account at present, according to the British Bankers’ Association, aimed at those on a low income or those with poor credit histories who would not otherwise be approved for a standard account.

Basic bank accounts allow individuals to pay in wages, benefits and a pension and provide a cash card to withdraw money.”

Basic bank account – for managing day-to-day money. It doesn’t usually allow you to go overdrawn by more than £10, if at all. We outline the basics here but if you’d like more information see our Basic bank accounts printed guide. You can download it or order a free copy online – see Free printed guides.

Current account – also for managing your day-to-day money, but with more features than a basic bank account. There are special accounts for students. Some current accounts pay you interest if you are in credit, but a savings account will usually pay a higher rate.

Savings (or deposit) account – for putting away money that you’d like to save, say for furniture, a holiday or emergencies. It often pays a higher rate of interest than current accounts, so your money grows.