The Royal Mail's universal service obligation (USO), which commits the organisation to deliver letters and parcels to every address in the UK, could be scrapped thanks to a loophole in the postal services bill, MPs have said.

In a new report, the Commons Scottish Affairs Committee said "further clarification" is needed from ministers on a clause that will allow regulator Ofcom to designate more than one service provider.

The committee called for a requirement for the watchdog to consult with households and businesses in remote, rural and island communities before it makes any changes to the USO.

Speaking to the Daily Mail, a representative for the Communications Workers' Union described the commitment as "the glue that binds the nation together".

The newspaper added that consumer affairs minister Ed Davey has pledged that the USO will be protected in any deal to sell the Royal Mail.
 

Author:  Paul Burn