Post Office chiefs have torpedoed a campaign by Winchester MP, Mark Oaten, to retain a PayPoint machine.

The terminal was based at the One Stop store in Springvale Road, Kings Worthy, near Winchester. The shop closed and reopened as a Tesco Express last month, but without the PayPoint machine.

The supermarket giant said it would not provide the service, which allows residents, often OAPs, to charge electricity keys and pay gas bills. The decision means there is now no PayPoint machine in Kings Worthy, the nearest being at Weeke.

Nick Patel, owner of Springvale Stores and post office in Fraser Road, was keen to install a terminal, but Post Office bosses prevented him from doing so, as PayPoint competed with their own services.

Mr Patel and Mr Oaten collected over 200 signatures from residents who wanted the Post Office to change its stance.

But Hazel Wright, of PO customer care, wrote to the MP this week and said they would not relent. She argued that installing PayPoint would lead to a loss of revenue, which if applied elsewhere, would force some post offices to close.

She told Mr Oaten: "I have no doubt that you may remain dissatisfied with the outcome of the decision, but there is no more I can add and therefore must consider the matter closed."

Responding to the decision, the MP insisted Kings Worthy needed a PayPoint machine. "It seems incredibly unfair. We've even offered a compromise that the machine would only be used when the post office counter is shut. I am running out of ideas, but will continue to do what I can to see this through."