London assembly members have expressed concern at the growing numbers of post offices facing closure.

In a report published on Tuesday, the public services committee cited the switching of benefit and pension payments directly into bank accounts as reasons behind the decline.

As many as 500 post offices in the Capital are facing closure as a result, assembly members argued.

The Post Office began the Urban Reinvention Programme in November 2000, which aimed to close a third of its 9,000 urban branches, after a government report concluded that too many were competing for too little business.

But the committee warned against such a move.

"The closure of a high street post office is not a decision that should be taken lightly as this is one of the stepping-stones that can lead to the decline of the high street," the report said.

It was recommended that post offices be able to sell travel cards and receive congestion charge payments as a means of boosting business.