Another 3,000 post offices could be forced to close, the Government has been warned.

The National Federation of SubPostmasters said one in four branches left after the current closure programme ends could shut as well if subpostmasters lose the right to handle state pensions and benefit payments.

A new card account, used by around four million people every week to access pensions and benefits, will be introduced next year.

But the Government could take responsibility for handling the scheme out of the hands of post office workers.

Of the 24 million visits made to UK post offices every week, 6.5 million are made by card account customers, according to research carried out by the federation.

George Thomson, general secretary of the NFSP, said: "The Post Office card account is a crucial lifeline to thousands of subpostmasters already struggling to keep their businesses going.

"If the Government chooses not to award the contract to the Post Office, up to 25 per cent remaining open will be forced to close.

The contract to run the new card account was put out to tender in line with EU regulations.

The Post Office is more than half way through the current closure programme, which will see 2,500 post offices shut by the end of the year.

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