Source · Select Committees · Business and Trade Committee
Recommendation 12
12
Acknowledged
Paragraph: 47
We recognise the importance of the Universal Service Obligation in delivering a vital public service,...
Recommendation
We recognise the importance of the Universal Service Obligation in delivering a vital public service, and we hope that Royal Mail seizes the commercial opportunities available to it in accessing every household across the country on six days of the week. We call on the Government to formally engage with Royal Mail, following the outcome of Ofcom’s enforcement investigation, to secure the future of the Universal Service Obligation and Royal Mail, and to provide an initial report to this Committee no later than the end of 2024.
Government Response Summary
The government acknowledges the importance of the Universal Service Obligation and states that the Minister discusses related issues with Royal Mail, but emphasizes that Ofcom is primarily responsible for ensuring a financially sustainable universal service.
Paragraph Reference:
47
Government Response
Acknowledged
HM Government
Acknowledged
As Minister responsible for postal services policy, I discuss a range of issues relating to Royal Mail’s role as universal postal service provider with the Chair of International Distributions Services and the Chief Executive of Royal Mail. The provision of a financially sustainable and efficient universal postal service is the primary duty of the regulator, Ofcom. I have been clear that Royal Mail would need to present to Ofcom any evidence that delivering the universal service in its current form is financially unsustainable. It would be for Ofcom to assess and respond to any such evidence, taking into consideration the requirement that the reasonable needs of users continue to be met, informed by the views of those users. I stand ready to carefully consider any advice that Ofcom puts forward on the future financial sustainability of the universal postal service.