Response to Ofcom announcement on future of the postal service

Statement from Consumer Scotland's Director of Policy and Advocacy Douglas White

Consumer Scotland has responded to communications regulator Ofcom’s announcement on the future of the universal postal service.

Consumer Scotland’s Director of Policy and Advocacy Douglas White said:

“Consumers across Scotland depend on the postal service for vital communications, with recent Consumer Scotland research showing sending letters to government departments, local authorities, banks, the health service and solicitors remain crucial.

“In recent years the price of post has risen sharply, while the required service standards have not been met. Ofcom fined Royal Mail £5.6m for failing to meet its first and second class delivery targets in the 2022/2023 financial year and is investigating the company for failing to hit its targets last year.

“The priority for Ofcom must be to ensure any changes to the universal service tackle the problems consumers have experienced and deliver improvements so the postal service is reliable and affordable for all users.

“The postal service is an essential part of the UK’s communications and logistics infrastructure and any reductions to the service are likely to have a significant impact on how businesses and providers of services across the economy are able to serve consumers. Ofcom must undertake substantial work to provide assurance that any changes will not have a detrimental impact for consumers.

“It is vital the needs and interests of consumers, particularly those who are most dependent on postal services, are at the forefront of the next stages of Ofcom’s work.”

Background

Consumer Scotland is the statutory advocacy body for consumers in Scotland. As part of its role it is the levy-funded advocacy body on postal services for consumers in Scotland.

A recent Consumer Scotland report on the Universal Postal Service found that for communications which were not personal, sending letters to business and public services such as government departments, local authorities and banks remain important for consumers, with 31% of letters sent being identity documents.

The price of a first class stamp has almost doubled during the past five years, from 70p in 2019 to £1.35 from April 2024. Consumer Scotland research found that even before two price rises in 2023, and a further rise in April 2024, consumers in Scotland were experiencing challenges in the affordability of postal services.

Consumer Scotland’s response to Ofcom’s call for input in April 2024 into the universal postal service highlighted the importance of looking at improvement to the universal postal service driven by engagement with consumers.