YORK sub-postmasters were today backing a campaign to encourage pensioners and benefits claimants to save their local post office from a cash crisis - and possible closure.

Pensions and benefits can now be paid directly into a bank, building society or post office account, instead of the traditional over-the-counter method.

But the Government has been accused of encouraging people to hand over their bank details, rather than set up a new-style account at the post office.

That throws doubt on the future of thousands of post office outlets, which depend on the income they receive for processing payments.

Now the Conservatives are urging people confused by the new system to fill in a protest postcard. More than one million are being distributed to post offices.

The Tories have pledged to pass on the details of every single person who registers with them to the Department of Work and Pensions.

Terry Greenwood, sub-postmaster at Copmanthorpe Post Office, said: "I would certainly back something like this.

"The pensioners are very confused, I think the Government is trying to tell them it had to go into banks and they are not pushing the card account.

"When we talk to them and explain all the options they say they want to come to the post office because it is convenient.

"From our point of view it is a lot of lost income and it also affects other areas of the business as people come into the shop and buy other things," said Mr Greenwood.

Brian Fletcher, sub-postmaster at Walmgate Post Office, York, said: "Any campaign that can save the post office and keep the business coming into the post office is welcome."

Maurice Bean, of Clarence Street Post Office, said there was a lot of confusion about the changes, but he was worried about losing income.

He said: "I think a lot of people are confused about it and pensioners are confused about having a card and a pin number.

"It is a worrying time until we know what is going on."

The campaign will also collect signatures for a national petition of people worried about the impact of the changes on the local post office.

Graham Halliday, financial and banking services director for Post Office Ltd, said: "I want to reassure our customers that they can carry on collecting their benefits in cash from any Post Office branch free of charge, and we certainly hope they choose to do so."

The system is being introduced gradually, but the Government will not start writing to pensioners, to ask them to choose a new payment method, for at least another month.

Updated: 10:40 Monday, April 14, 2003