Postwatch, the independent watchdog for postal services, welcomes confirmation by the National Audit Office (NAO) that the public sector could save at least £30 million each year on its postal services. Postwatch supports the emphasis Sir John Bourne places on Government Departments and Local Authorities shopping around for better deals to reduce costs. Millie Banerjee, Chair of Postwatch, welcoming the report said: “The NAO’s report is timely for three reasons. Firstly, it comes in the week of the budget when public sector expenditure has the limelight. Secondly, it is just a few months after the UK’s postal market was fully opened to competition and thirdly because the move, this August, to Pricing in Proportion (PiP) should lead to all mailers reviewing their postal needs.
“The new entrant postal operators need to win market share and sign-up large volume customers. Public sector organisations are amongst the biggest mailers in the UK and will be able to secure significant savings. The financial services and utilities sectors were first off the mark and have already embraced competition. Whitehall need not be too far behind.
“As regards PiP, those organisations that can adapt their post to conform to the standard letter format will avoid extra costs. For example, single sheet letters in A4 sized envelopes should become a thing of the past. It is a pity the NAO’s report and the associated ‘Good practice guide’ did not give greater prominence to PiP. “The NAO should continue to monitor postal efficiency, including how PiP is implemented. ”
NOTES TO EDITORS
1. The National Audit Office Report and associated press release can be viewed
and downloaded from www.nao.org.uk/
2. For more information about Postwatch visit www.postwatch.co.uk/
3. For a complete list of licensed postal operators and their contact details visit
www.postcomm.gov.uk/
4. For more information about Pricing in Proportion visit www.royalmail.com/pip
