Post Office sees user figure rise

The milestone comes despite Post Office closures

The number of people using post offices to access financial services has reached a million.

The milestone comes three years after the Post Office joined up with Bank of Ireland to offer its customers credit cards, savings accounts and insurance.

Post Office bosses claim this success is evidence that the network is the fastest growing financial services provider in the UK.

Yet, about a fifth of existing post offices are expected to close by 2009.

"Gaining one million customers in approximately 1,000 days confirms that we were right - people want easy to understand, good value products," said Post Office managing director Alan Cook.

'Vital' service

Post offices were responsible for one in every 25 credit cards issued last year, while one in every 200 homes in the UK is insured with a branch, he said.

Its saver accounts have more than £2bn in deposits.

"This is a real achievement for the business against the backdrop of the challenges we are facing," Mr Cook continued.

More than 4,000 post offices have shut in the past eight years as the internet and a changing way of life has taken away vast chunks of its traditional business, such as supplying tax discs and driving licenses.

Earlier this month, the government announced a further 2,500 post offices will be axed by 2009.

Mr Cook said the Post Office's foray into financial services was "vital" to creating a sustainable network.