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Postal Services Bill summary and update

The Bill's provisions are divided into four main parts:

•Part 1 provides for the restructuring of Royal Mail, including the introduction of private sector capital and expertise from the sale of up to 90% of Royal Mail, an employee share scheme and provisions for Post Office Ltd to continue to be owned by the Crown or a mutual ownership structure

•Part 2 deals with the Royal Mail’s pension deficit by transferring the historic liabilities of the scheme to the Government

•Part 3 makes provisions for the regulatory arrangements for postal services through the transfer of powers from Postcomm to Ofcom

•Part 4 contains provisions for a “special administrative regime” should the universal postal service be at risk from the provider entering insolvency proceedings

Latest news on the Bill

6th April 2011 - Line by line examination of the Bill took place during day four of committee stage. Amendments discussed covered clauses 16-18, 21-24, 28, 29, 33-35, 37, 42-44, 48,49, 58, 60, 67 and 80, and schedules 3, 9, 11, 12 of the Bill.

4th May 2011 - Scheduled report stage – further line by line examination of the Bill.