What is the Universal Postal Service Obligation?
The Postal Services Act of 2011 sets out that Ofcom must regulate postal services in the UK to ensure that there is a universal postal service available in the UK. The Act specifies that this universal postal service should be six-day a week delivery and provide geographically uniform pricing across the country.
Ofcom have designated Royal Mail to be the UK’s sole designated Universal Service Provider for post.
After adopting this role, and conducting a review of postal services, Ofcom removed much of the price regulation previously in place. To protect more vulnerable consumers, a price cap was retained on second class letters, large letters and parcels under 2kg.
Royal Mail moved quickly to substantially increase prices which put their service on a more efficient and sustainable footing.
The obligation has some exceptions, such as there is no requirement to provide collections and deliveries on a public holiday.