GUERNSEY POST is stopping its over-the-counter banking services. It will no longer be offering direct debits, standing orders or cash cheques after Alliance and Leicester leaves Guernsey at the end of the year.

Postwatch Guernsey said it would be the users who suffered and encouraged the company to make alternative arrangements.

The independent watchdog’s chairman, David Inglis, said: ‘Alliance and Leicester gave warning this was going to happen quite some time ago.

‘We raised the issue because Guernsey Post needs to find another revenue stream.’

The cutbacks come in the wake of Guernsey Post’s attempt last year to introduce more financial services for customers.

Retail services head Jason Baker said he was already exploring other ways of maintaining money transfers and hoped to have some in place by the end of the year.

‘We might be able to offer partnerships with banks to allow customers to use financial services, but it is a big disappointment as it is the end of a relationship that has lasted for years,’ he said.

‘We have a good network in Guernsey, with 11 stores and longer opening hours, so we reach into the community better than most companies.

‘We hope people continue to use us as they have in the past.’

Elderly people with UK pensions will be the most affected as they will have to find another way of getting their money.

But many have mobility problems and don’t use banks, or they live in remote areas where easy access to one is not possible.

Fortunately the number of pensioners likely to be affected in this way is only around 35.

Tony Beaugeard of Age Concern said that it was still a major inconvenience for those involved.

‘We all know how difficult opening a bank account can be in Guernsey.,’ he said.

‘There are endless papers and forms to fill in, which can be a very stressful ordeal for elderly people.

‘If they are receiving a UK pension, then they probably also have no family in the island to help them out.’

The Department for Work and Pensions has written to people who receive UK pensions to advise them of the necessary steps to take in advance of the change.

Alliance and Leicester said: ‘Following a review we have taken the decision to cease providing money transmission services via Guernsey Post from 31 December.

‘This is a commercial decision based on the cost of providing the services and the relatively small volume of transactions we process on the island.

‘We are working closely with Guernsey Post to ensure a smooth transition.’