Both organisations recognise the need to co-operate closely on complaints for the benefit of customers. Both also recognise that complaints provide a valuable source of information that can result in change for the benefit of all.

The innovation introduced into this new agreement is that Royal Mail has agreed to pay Postwatch directly and in proportion to the complaints it receives. The more complaints Postwatch receives the more Royal Mail will pay. For 2005/06, the first 27,500 complaints will cost £45 each; thereafter £36.

The postal services Minister, Gerry Sutcliffe, welcoming the agreement said: “I am delighted with the significant progress which has been made between Royal Mail and Postwatch, in developing a joint initiative to facilitate a more effective complaint resolution process for consumers.”

Peter Carr, commenting on the agreement said: “Complaints are a barometer of service quality. Royal Mail and Postwatch will jointly monitor complaints and work together to identify the root causes and improve services.

“The agreement we have reached is good news for customers and will ensure Postwatch has the resources in place to respond to customers when needed. This in turn will allow Postwatch to alert Royal Mail to problems. A little joined up thinking can go along way.”

Notes to editors

1. A copy of the Postwatch/Royal Mail agreed Memorandum of Understanding can be viewed at www.postwatch.co.uk/policy/info.asp

2. Postwatch, in accordance with the Postal Services Act 2000, can only take up with Royal Mail those complaints the company has first had an opportunity to resolve. Customers should in the first instance contact Royal Mail on . If dissatisfied with Royal Mail’s response they should contact the Postwatch helpline on 08456 013 265.

3. Postwatch came into existence on 1 January 2001.

4. Postwatch would like to thank consultant Paul Jarah (from Quick Consultancy Limited) for facilitating the negotiations to a successful conclusion.