The UK Government has agreed a new £250million seven-year contract to continue the Post Office card account service.
Pensions Minister Steve Webb told MPs the deal would ensure the service remained available until at least the end of 2021.
He added that it would “protect a key service for vulnerable pensioners and benefit claimants, as well as helping safeguard the future of the Post Office network”.
North MP Danny Alexander, the chief secretary to the Treasury, said: “This is great news for our post office network which continues to be at the heart of many Highland communities.
“Many people choose to use the post office to collect their pensions, benefits and other services. This new agreement will also help sub-postmasters to attract more business and generate income for their important local businesses.”
George Thomson, general secretary of the National Federation of Sub-Postmasters, said: “We welcome today’s announcement by the government, which is good news for our post offices and for the millions of people who rely on them.
“The renewal of the Post Office card account will help provide the Post Office network with a more stable future and we look forward to working with the government to explore other ways it can make use of the network.”