A POSTmaster has resigned from his job over controversial plans by the Post Office to introduce electronic pension payments for customers.

Bob Wilson, who runs Heighington Post Office, near Darlington, said he has been forced to close the branch because the business would no longer be viable under the new system.

The Department of Work and Pensions announced last year the introduction of a direct credit system to pay pensions and giros straight into bank accounts.

Mr Wilson, who has run the branch for more than five years, said the move means that post offices will receive a cut in the amount Post Offices Ltd pays them per customer for each transaction.

Pensioners will have payments transferred straight to a bank or post office account which they can then access with a card at a post office branch.

Following meetings with his accountant Mr Wilson found that he was going to be so much worse off under the system that he could not keep the business going.

He said: "For each transaction the payment to us has been cut by about a third.

"I just can't afford to keep going. I have been here for a few years and it is a shame for me as I am losing money daily because the adjoining shop has been suffering too.

"I had hoped that things would pick up but I can't see it happening.

"Being a village branch I do not have a lot of business customers so we rely on the pensions.

"I feel sorry for the customers as they will have to go elsewhere."

The post office will close on July 8.

Customers will have to use the nearest branches in Newton Aycliffe or Darlington until further notice.

Parish councillor John McGuckin said: "We are hoping that it will move into the village store. It will be an inconvenience when it closes."

A spokeswoman for Post Office Ltd said they were hoping to find somebody else to run the post office or to find alternative premises.

She said: "Because it is a rural post office we are committed to keeping it open and we are looking for alternative premises."

Anybody interested in taking over the post office can call the customer helpline on (0845) 7223344.