ABCUL Chief Executive Mark Lyonette said:

"Many people rely on their local Post Office for simple cash based savings products that they have valued for many years. The prospect of a big reduction in such products available through the Post Office network leaves a big gap which credit unions would be very well placed to fill.

"Credit unions offer simple, safe savings products to nearly a million people across Britain, but access in many areas to these services is limited. With the potential investment in the sector that the Government is currently considering, credit union savings and affordable loan products could be made available through the Post Office network.

"This could make local and mutual financial services accessible to millions more people and ensure that the Post Office remains a valued provider of the products people need."