Source · Select Committees · Business and Trade Committee
Recommendation 11
11
Acknowledged
Paragraph: 46
Royal Mail is a brand with a long and proud heritage, and postal workers have...
Conclusion
Royal Mail is a brand with a long and proud heritage, and postal workers have been rightly celebrated as key workers. We want to see Royal Mail on a firm and sustainable footing for the future. However, it is clear that the landscape has changed a great deal since the passing of the Postal Services Act 2011 and the Universal Postal Services Order made in 2012. The commercial reality is that the balance between letter and parcel volumes has tilted, perhaps decisively.
Government Response Summary
Royal Mail acknowledges the shift in demand from letters to parcels and states that they have asked the Government to review the Universal Service Obligation (USO) and requested a move to a five day a week letter service.
Paragraph Reference:
46
Government Response
Acknowledged
HM Government
Acknowledged
I welcome the Committee’s recognition of Royal Mail’s long and proud heritage. It is one of which everyone associated with the Company is very proud. We must be mindful, however, that organisations that do not keep up with the times do not have a future. We are, therefore, grateful to the Committee for recognising that our customers’ demand for letters has dropped so substantially, and their demand for parcels has grown so sharply, that the balance has shifted. This shift is decisive. That is why Royal Mail has asked the Government to review the Universal Service Obligation (USO) and requested a move to a five day a week letter service. Ofcom has already found that such a move would meet the reasonable needs of 97% of consumers. We share the Committee’s desire for Royal Mail to have a firm and sustainable footing. We will work constructively—with the Government, Ofcom and Parliament—to ensure that the USO is sustainable and meets the needs of our customers, both today and in the future. But I must be clear to the Committee that the need for change is urgent.