Royal Mail's compensation schemes for delay and loss and damage

On 18 November 2008, Postcomm published a final version of the compensation scheme for delay to conclude its review of Royal Mail’s retail compensation schemes for loss, damage and delay.
Following consultation, Royal Mail’s revised retail compensation arrangements came into effect on 1 August 2008.  The key changes are as follows:

  • For items posted with Royal Mail which have no intrinsic value (for example a 1st or 2nd class letter), or where a claimant cannot provide proof of posting, there will be compensation for loss, damage and delay of a minimum of six 1st class stamps (currently worth £2.16);
  • For items that have an intrinsic value, with proof of posting with Royal Mail and proof of value (such as an invoice or receipt) customers will be entitled to a postage refund plus compensation for actual loss up to the value of the item, or 100 1st class stamps (currently £36), whichever is the lowest ;
  • compensation for delayed retail mail will become payable one day earlier than at present – three working days after the due delivery date instead of four;
  • £5 and £10 payments for delay and substantial delay will be discontinued, except for Special Delivery Next Day (not posted on account) Redirected retail mail will now be eligible for compensation for delay; and
  • users of the Articles for the Blind service will now be able to claim compensation for loss, damage and delay.

Postcomm has published a notice which sets out further amendments to the compensation scheme for delay to clarify when compensation is payable for delayed items redirected using Royal Mail’s Redirections service.  The amendments reflect the original policy proposal to allow the definition of delay for a redirected item to extend by two days over the Christmas period.

Related documents:

18 November 2008 - decision statement
 Confirmation of amendments for redirections (pdf, 66KB)
17 October 2008- decision statement
 Notice of changes to delay scheme for redirections (pdf, 918KB)
14 August 2008 - decision document
A review of Royal Mail's compensation schemes - bulk compensation for delay (pdf, 846KB) 
21 May 2008 - consultation response
 response to the final proposals document (pdf, 17KB)
21 May 2008 - decision statement 
 Postcomm’s Decision Statement on retail compensation arrangements (pdf, 184KB)
1 April 2008 - final proposals
A review of Royal Mail's compensation schemes for loss, damage and delay. Final proposals for compensation - retail compensation. April 2008 (pdf, 271KB).
1 April 2008 - news release 
Postcomm publishes final proposals on Royal Mail's compensation schemes. 
1 April 2008 - consultation responses
Royal Mail response to Postcomm's compensation proposals (pdf, 123KB).
ISBA response to Postcomm's compensation proposals (pdf, 153KB).
MBNA response to Postcomm's compensation proposals (pdf, 308KB).
Postwatch response to Postcomm's compensation proposals (pdf, 107 KB).
Other responses to Postcomm's compensation proposals (pdf, 74KB).
6 December 2007 - news release
Postcomm's proposals aim to simplify Royal Mail's compensation schemes 
6 December 2007 - proposals document
Royal Mail's compensation schemes for delay and loss and damage (pdf, 597KB) 
September 2007 
Information for customers on Postcomm's 'letter of comfort' to Royal Mail (pdf, 26KB) 
26 June 2007 - news release
Royal Mail's request to suspend bulk mail compensation during industrial action 
21 June 2007 - Postcomm letter to Royal Mail
Financial implications of quality of service failure due to industrial action (pdf, 48KB) 
2 April 2007 - consultation responses 
Royal Mail response (pdf, 817KB), 
Postwatch response (pdf, 78KB),
Mail Users Association response (pdf, 85KB),
other responses (pdf, 144KB). 
30 November 2006 - consultation document 
Royal Mail's compensation schemes for Delay and Loss and Damage (pdf, 386KB). 
30 November 2006 - news release 
Postcomm consults on Royal Mail’s ‘complicated’ compensation schemes.