CONSUMER Focus, the statutory watchdog for post offices, has welcomed today’s commitment by the Prime Minister to introduce a “post bank”.

Richard Bates, post expert at Consumer Focus, said: “We hope this is the start of a transformation of the Post Office into a neighbourhood bank.

“There’s never been a better time to realise this potential. It would be a big shot in the arm for communities and people deserted by Britain’s banks.

‘Consumer confidence in banks has been undermined by the financial crisis and consolidation in the sector has fuelled branch closures.

“By contrast, the Post Office stands out – it offers a trusted brand with 11,500 branches, which is more than the high street banks combined.

“The Post Office is uniquely well placed to play the role of the nation’s neighbourhood bank. Its network is at the heart of our communities, including locations that the banks have left behind.

“The Post Office has a long history in providing financial services to consumers. Today’s announcement is an opportunity to provide a range of accessible products to the people who need them most.

“We look forward to seeing the details of exactly what the Government is proposing but, in principle, this is a bold and much-needed first step.”