Royal mail universal service obligation

The Royal Mail Universal Service Obligation (USO) is a commitment by Royal Mail, the UK's postal service, to provide a minimum level of postal services to the entire country, regardless of location or population density. The USO is a statutory obligation, meaning it is enshrined in law, and is designed to ensure that all citizens have access to a reliable and affordable postal service.

The USO was introduced in 1969 and has been updated several times since then. The current USO was set out in the Postal Services Act 2011 and came into effect in 2012. The USO requires Royal Mail to provide the following services:

  1. Six-day-a-week delivery: Royal Mail must deliver mail and parcels six days a week, Monday to Saturday.
  2. Next-day delivery: Royal Mail must deliver mail and parcels to 98% of addresses in the UK within one working day.
  3. Two-day delivery: Royal Mail must deliver mail and parcels to 99.8% of addresses in the UK within two working days.
  4. Collection and delivery of mail: Royal Mail must collect and deliver mail to all addresses in the UK, including rural and remote areas.
  5. Collection and delivery of parcels: Royal Mail must collect and deliver parcels to all addresses in the UK, including rural and remote areas.

The USO is designed to ensure that all citizens have access to a reliable and affordable postal service, regardless of where they live. It is also intended to promote economic growth and social inclusion by providing a vital service to rural and remote areas.

In return for providing the USO, Royal Mail is entitled to a subsidy from the UK government to help cover the costs of providing these services. The subsidy is funded through a levy on Royal Mail's profits.

The USO has been the subject of some controversy in recent years, with some arguing that it is too expensive and that Royal Mail should be allowed to focus on more profitable areas of the business. However, the UK government has maintained that the USO is an important part of the country's infrastructure and that it is essential for maintaining social cohesion and promoting economic growth in rural and remote areas.