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In accordance with the terms expressed in CWU Rule 4.1.11 Branches are advised that from the 1st October 2011 the CWU Death Benefit payment will be increased to £700.

• The changes approved by Postcomm today better reflect the way people use our service now

• They are a step towards creating a more level playing field between Royal Mail and other delivery companies

• Royal Mail now awaits the outcome of an Ofcom consultation on whether there will be continued regulation of Royal Mail and, if so, to what extent

The changes approved by Postcomm today include:

• Amending compensation arrangements for business contract customers. This brings Royal Mail more in line with the delivery market. The change will not affect consumers or the vast majority of small business customers who use stamped and franked mail and parcels

• Reducing the claim period for loss or damage from 12 months to 80 calendar days after the date of posting. Two thirds of consumer claims are already made within two months and 90 per cent within three months. In the wider delivery market, customers have 28 days to make a claim for compensation

• Piloting of a scheme in which items that are too big for the letterbox or require a signature can be delivered to a neighbouring address if no-one is at home. Royal Mail is the only delivery company that is not allowed to deliver to a neighbour as part of its standard practice. The overwhelming majority of customers support the initiative

The changes are part of a process of bringing Royal Mail’s terms and conditions more in line with other delivery companies. Royal Mail will continue to provide a high level of service with minimum standards that are among the highest in Europe.

The regulator’s decisions – available at www.psc.gov.uk - are a step towards lifting some of the many restrictions that Royal Mail faces but which other companies do not. Royal Mail now awaits the outcome of an Ofcom consultation on the future regulation of Royal Mail.

Stephen Agar, Royal Mail’s Director of Regulated Business, said: “The changes that have been approved better reflect today’s market. They are a step in towards creating a more level playing field between Royal Mail and other delivery companies. Royal Mail now awaits the outcome of an Ofcom consultation on future regulation of our company.”

Changes to compensation for business contract customers

Postcomm has approved Royal Mail’s application to change its compensation arrangements for business contract customers. Royal Mail is now finalising its plans for implementing the change and will communicate with customers in due course. The change means compensation will no longer be available for loss or damage to postal items sent using untracked services such as Mailsort or Packetpost. None of the major UK delivery companies provide large businesses with compensation for loss or damage for untracked delivery services.

These changes will not affect consumers or the vast majority of small business customers who use stamped and franked mail and parcels. Royal Mail made the application to make changes because:

• Current compensation arrangements are not in tune with the reality of today’s market

• Customers increasingly want tracked services. Royal Mail has invested heavily in these services to meet the changing market demands. The improved range of delivery services Royal Mail offers enables customers to choose the right service to meet their needs for speed, tracking and compensation

Changes to compensation claim period for businesses and consumers

Postcomm has approved Royal Mail’s application to reduce its compensation claim period. Businesses and consumers can currently claim for loss or damage of postal items up to 12 months after an item was sent. It is extremely difficult for Royal Mail to investigate a claim so long after the item was posted.

Approximately 67 per cent of social customers claim compensation within two months of posting; 90 per cent claim within three months. Royal Mail is now finalising its plans for implementing the change and will communicate with customers in due course. The change will reduce the claims period to 80 calendar days after the date of sending.

Delivering undeliverable items to a neighbour

Approval has been given by Postcomm for Royal Mail to pilot an initiative to make it easier for customers who are not at home to receive items that require a signature or are too large to go through the letterbox. Royal Mail is the only delivery company that is not allowed to deliver to a neighbour as part of its standard practice.

Independent research by Tpoll on behalf of Royal Mail has revealed that the overwhelming majority of consumers would welcome the initiative. The study found that 91.55 per cent of people supported the delivery of undeliverable items to neighbour if they had the ability to opt out. Less than four per cent were not in favour of the initiative.  

Royal Mail is now finalising plans for the pilot and more detail will follow in due course. Customers in pilot areas will be informed of the initiative and given the opportunity to opt out of the delivery to neighbour scheme. The pilot will include Recorded Signed For™ letters which require a signature on delivery but Special Delivery™ mail is not part of the pilot scheme.