A PENDLE councillor is mounting a campaign to allow pensioners to continue using pension books to collect their money.

Coun David Whipp has tabled a motion asking his fellow councillors to call on the government to halt plans to scrap pension books.

He has also said government figures show post offices in the borough will lose 3,580 customers when pensioners collect their entitlement at banks and building societies.

This has created fears that post offices could suffer cutbacks and even close because they would lose out on payments currently received for processing benefits.

The government wants all benefits, including pensions, paid straight into a bank, building society or post office account by April 2005.

All pensioners will receive a letter asking for their bank details and providing instructions on how to open an account if necessary.

Coun Whipp said: "The plans will rob the post office network of vital revenue and will accelerate the rate of closures.

"Many of the pensioners who want to stick with the post office could be met with a permanent closed sign.

"The government's plans are driven by cost-cutting and not what is best for pensioners. Many pensioners, particularly older ones, are comfortable with what they know.

"It is not too late for the government to think again and allow pensioners to hang onto their pension books."

Controversy has surrounded the change as some pensioners have complained of complex application procedures and problems with PIN numbers.

Coun Whipp's motion states that 7,615 pensioners in Pendle choose to use a pension book and that "many prefer to collect their pension at a local Post Office".