UK Royal Mail compensation battle goes to High Court

Postwatch has won the right to seek a judicial review of regulatory body Postcomm’s decision not to enforce Royal Mail’s compensation scheme, after the High Court ruled in its favour.

It means the postal operator could be forced to shell out the GBP30m it still owes customers.

All three public bodies were required to submit evidence to the court.

A review date has not been set, but a judge will consider the legality of Postcomm’s decision not to take action against Royal Mail when it failed to meet all 15 of its standards of practice last year, resulting in the debt. A Postwatch spokesman explains: “Going to court has always been a last resort. It’s certainly not something we’re entering into lightly. However, there’s no other option available.

“It’s the only route left to pursue justice for customers. We’ve exhausted every other possibility.”

Postwatch chairman Peter Carr had hoped the issue would be resolved another way, but is determined to press on with the case. He last month said: “Customers have paid for a service that has not been performed. They must be compensated (PM April 8).”

A Postcomm spokesman refused to comment, maintaining: “It is a matter for the courts.”

Postcomm says operators will have to provide performance information, set up complaints systems and provide financial guarantees to get a licence in the liberalised market.

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