Question

To ask the Secretary of State for Business, Innovation and Skills, if he will request the Royal Mail to review the (a) effectiveness and (b) fairness of its postal compensation scheme.

The specific details of its compensation arrangements are essentially a commercial matter for Royal Mail.

Customers who use stamps, on-line postage, or franking meters to pay for Royal Mail services do so under ‘Postal Schemes’ rather than individual contractual arrangements. These ‘Schemes’ are made under Section 89 of the Postal Services Act 2000 (as amended), which requires the company to formally consult with customers and stakeholders before amending its Schemes.

Royal Mail is also required by regulation to ensure that it maintains fair and reasonable remedies and redress. Ofcom, the postal regulator, monitors the effectiveness of compensation arrangements and has the power to direct Royal Mail to modify its Schemes if necessary.

The Schemes have been amended and updated on a number of occasions in recent years. More information about the Schemes and related consultations can be found on Royal Mail’s website (www.royalmailgroup.com/regulation/consultations/).