Millie Banerjee, the new Chair of Postwatch, the postal watchdog, looking back over 2005 and forward to 2006, has the following message for customers:
“2005 was a good year for postal customers. Royal Mail sustained its financial recovery and at long last started to achieve expected performance levels. On average Royal Mail now delivers more than 93 per cent of 1 st class mail the next day. 2005 was also a much better year in terms of industrial disputes. Customers benefited from far fewer days being lost to strikes.
“Royal Mail should be able to build on the past year's improving performance, and make 2006 an even better year for consumers. We expect Royal Mail to reach record levels of performance with an average of some 95 per cent of 1 st class letters being delivered next day.
“However, 2006 will also be a year of postal changes and there is therefore scope for confusion and mistakes. Postwatch's job is to help ensure that these are avoided.
COMPETITION
“Despite the UK postal market opening to competition on 1 January 2006, this will not be the biggest change confronting customers in the coming year. Most of us will not be offered competitive choice for several years. However, business customers will, and the race for their attention is what will be foremost in the minds of postal companies, including Royal Mail. One of Postwatch's challenges for the year will be to ensure Royal Mail's focus on business customers does not result in the needs of domestic customers being ignored.
“The fact that postal competition won't begin with a bang is good news. The truth is most customers will not notice any difference in the service they received. Customers should be reassured that postal competition will not mean lots of different coloured post boxes or armies of postmen and women in different uniforms fighting to be first to letter boxes!
In practice, Royal Mail will continue to deliver the vast majority of mail and will go on serving all of the UK.
PRICING IN PROPORTION
“The biggest change confronting customers in 2006 will be Pricing in Proportion. From 21 August 2006 the way Royal Mail charges for postage will be determined by the size, thickness and weight of an item. If a letter is more than 5mm thick or a large size it will no longer just be a case of taking a stamp from your purse or wallet and sticking it on the envelope. Businesses will need to find out in advance what the new system will mean and make changes if necessary.
“Royal Mail will be undertaking a major awareness campaign, starting in May 2006. Also, Royal Mail have set up a Pricing in Proportion helpline 08456 113 113. Postwatch with Royal Mail will be monitoring the effectiveness of the campaign to ensure this major change is being properly explained to all customer groups, including most importantly vulnerable ones.
RURAL POST OFFICES
“2006 will undoubtedly be an important year for the UK's 8,500 rural post offices, currently supported by the government's £150 million annual ‘Social Network Payment'. During the year, the DTI will run an important consultation exercise, which should inform the government's preferred way forward for the rural network's structure and funding. Postwatch's job will be to make sure this consultation is properly considered by interested parties and that customers' concerns are listened to and acted upon.
“One outcome may be the closure of many rural post offices. However, this should not necessarily mean that rural customers are left without access to postal services. Postwatch will be pushing for innovative ways of providing services, for example travelling post offices, to be considered as a solution to the rural network's current difficulties.”
