Hooper Review of the postal services sector
An independent review of the postal services sector was undertaken between December 2007 and December 2008. The review panel comprised Richard Hooper CBE (Chair), Dame Deirdre Hutton and Ian Smith. The review looked at changes taking place in the postal and wider communications markets and what the implications of those changes were for the UK postal service, in particular the provision of the universal service.
Terms of Reference for the original review
- To assess the impacts to date of liberalisation of the UK postal services market, including on the Royal Mail, alternative carriers and consumers.
- To explore trends in future market development and the likely impact of these on Royal Mail, alternative carriers and consumers.
- To consider how to maintain the Universal Service Obligation in the light of trends and market developments identified.
The review panel published an initial response to evidence relating to its first two terms of reference on 6 May 2008, and published its final report, 'Modernise of Decline: Policies to maintain the universal postal service in the United Kingdom' on 16 December 2008.
Key findings of the original review
At the heart of the report were three linked recommendations:
- Pension deficit: as part of a package of changes, the government should take over responsibility for reducing substantially the pension deficit.
- Partnership: to improve the Royal Mail’s performance it should forge a strategic partnership with a postal operator with a proven record in transforming its business, working closely with the workforce.
- Regulation: Hooper proposed that Ofcom should take over responsibility from Postcomm for regulating the postal market. Its primary responsibility being to maintain the universal service in the wider context of the other changes taking place in communication markets.
