GBP50m compensation bill for Royal Mail

The Royal Mail is paying out a record £50 million in compensation to business and individual customers because of late delivery of post, today’s report showed.

More than £35 million will be given to companies under a compensation scheme described by the Royal Mail as the fairest in Europe.

The scheme refunds 0.1% of a customer’s bill for every 0.1% drop in performance below a set standard.

Another £16.5 million is being paid to smaller firms and individual customers who claim compensation for delayed post.

Evidence of delays is usually required by the Royal Mail, which pays a book of first class stamps to individuals in the first instance.

Payments of between £5 and £10 are made in some cases where evidence of delays can be produced, such as a receipt.