Paul Keetch the local Lib Dem MP, a vocal supporter of the Post Office Card Account scheme, said he was delighted to hear the news that the Government renewed the Post Office's contract just days after the Liberal Democrats put a motion to the House of Commons calling for the renewal.

Mr Keetch said: "We've snatched victory from the jaws of defeat. Despite the Government defeating our motion on Monday, November 10th, they have finally realised how important this scheme is to communities all over the country.

Local Post Office campaigner Jesse Norman also welcomed the decision to keep the Post Office Card Account, which is used to provide pensions and benefits to 4.3 million nationwide--and some 10,000 people in Herefordshire.

The Post Office will retain the business under a new contract running for five years from 2010, with the possibility of a further extension.The government's current Post Office closures plan will close 2,500 branches by the end of 2008, and it had been feared that as many as 3,000 more branches would go if the Card Account was axed.

Ross Post Office has geared up to deal with new customers following the news that Tudorville Post Office was closing on December 3rd. However Tudorville will re-open the following day, December 4th, as a new Post Office outlet. Customers will be able to transact a broad spectrum of Post Office services, including automated banking services, bill and budget payment schemes, Post Office Card Account, postal orders and some letters.