UK Government 'could save Pounds 31m on post bill'
The public sector would save Pounds 31 million a year if it dropped Royal Mail in favour of rivals, sent some letters second class and used the internet more, the Government’s spending watchdog said yesterday. The finding by the National Audit Office (NAO), which examined how key departments handled their post, is a blow to Royal Mail. The postal group, which handles most public sector mail, is already losing key contracts as full competition takes its toll. The report also highlights the large quantities of mail sent by departments to incorrect addresses or people. The NAO found that the average cost of mail in the public sector is 28p an item, compared with 22p in the financial services industry.
The watchdog said that departments should also send more letters second class, use the internet more and manage their systems better.
