The Post Office is to launch a national broadband service on Monday designed to appeal to people aged over 50.

It has opted to target the new services at the demographic, which makes up 25 per cent of the UK online population, as it feels is not catered for at present.

The company is also hoping to attract those consumers who want to pay in cash for their broadband service at their local Post Office branch, avoiding the need to set up a direct debit.

There will be four broadband packages, delivered via BT broadband lines, and users will have to sign up to a 12-month contract. Cash payers will be charged a levy of £1 a month, which is payable on a quarterly basis.

Post Office Broadband standard will cost £15.95 a month on direct debit. For this a user will get up to 8Mbits/sec, a 5Gb download limit and a modem.

Post Office Broadband Extra will cost £20.95 a month with direct debit and offers up to 8Mbits/sec and unlimited downloads, subject to a fair-use policy. Subscribers will also get a wireless modem and Post Office-branded security software, which will include parental controls, anti-virus and firewall features.

However, these services do not include line rental, which is £11 a month, so the total costs will be a whopping £26.95 and £30.95 respectively.

Two other packages use the Post Office's Homephone service, which includes line rental, so runs slightly cheaper. Broadband Standard will cost £21.95 a month for up to 8Mbits/sec, 5Gb monthly download limit and a modem; free evening and weekend phone calls are included.

Post Office Homephone with Broadband Extra, costs £25.95 a month for up to 8Mbits/sec, unlimited monthly downloads, a wireless router and free evening and weekend calls.

A representative for the Post Office also told Computeractive that it had taken into consideration Ofcom's call to internet service providers (ISPs) to be clearer about service speeds, a move sparked from our Crystal Clear campaign.

"We are being very transparent about our speeds and will inform our customers if the broadband is available on their lines," she said.

Price-comparison website Broadband Choices welcomed the introduction of the cash payments and said the Post Office's trusted reputation could help it do well.

Michael Phillips product director at Broadband Choices said: “The Post Office’s broadband prices are not competitive, so it will have to build on its trusted reputation. If it builds on this by concentrating on its customer service then it could carve out a niche for itself.

However, he warned that this alone would not make it the key market player it wants to be.