DROITWICH Spa's main post office is effectively on the market, claims town MP Peter Luff.

The Mid-Worcestershire Tory believes the Ombersley Street East counters will shut as part of a national restructuring scheme.

He issued a warning two weeks ago after receiving a leaflet featuring a Government policy to transfer benefit payments from post offices to bank accounts.

The utility faces a £400m loss of income per year.

The MP said the leaflet warned some counters could move into shops to cut losses.

He now has a letter from Post Office managing director of customer and banking service Stuart Sweetman.

According to Mr Luff, the letter said: "We have no current plans to convert our directly managed post offices in Droitwich to agency status but we would review that position if a suitable commercial opportunity arose."

Mr Luff said: "This is a clear statement that the Spa office is on the market.

"I have tabled a parliamentary question asking the Government to freeze such transfers until consultation arrangements are in place.

"Currently, this vital service could close without consultation with residents."

Worcestershire county councillor Peter Pinfield (Lab, Droit.Town) told the Advertiser: "I am not against the Government's policy to change the benefits transfer system.

"It will help reduce fraud and ensure older people do not carry substantial sums of cash.

"However, a town the size of Droitwich needs a main post office for many services and I would be reluctant to see that removed."