Think that Royal Mail is bad? Wait until you see its privatised successors

The important task of getting crucial and confidential letters to people on time is jeopardised by profit-oriented thinking that prioritises getting postmen back to the depot to meet targets.

Last week marked the formal announcement by the Minister for Business and Enterprise Michael Fallon that the Royal Mail will be sold off by next April, setting the ball rolling on what is set to be the biggest privatisation for over 20 years.

This follows the deregulation of postal services in 2006, which has allowed companies such as TNT post to win contracts to deliver mail on behalf of private and public sector organisations. TNT post are in a pilot phase in West and Central London this year, providing competition to Royal Mail to deliver letters directly to the doorstep for the first time in Royal Mail’s 360-year history. They intend to expand their operation across the country in the coming years, aiming to employ up to 20,000 postal workers.

In light of recent changes in the postal system, upon hearing of problems with mail turning up late and sometimes not at all, I went undercover as a delivery operative for TNT post for Channel 4 Dispatches’ Secrets of Your Missing Mail (airing at 8pm tonight) to examine the quality of service provided by privately owned companies. I found cause for concern on several fronts, arising from the profit-driven privatisation of an industry that remains an important public service; the contracts up for grabs include the delivery of crucial letters for hospital appointments, benefit assessments, credit cards statements and household utility bills, so it is paramount that these letters are delivered reliably, punctually and securely.

However, I found that the important task of getting crucial and confidential letters to people on time jeopardised by profit-oriented thinking that prioritises getting postmen back to the depot to meet targets. On several occasions, I was called back to the depot in the early afternoon with bundles of mail left to deliver, frustrated as there were no logistical reasons as to why these letters couldn’t be delivered that day. This attitude, combined with the fact that TNT only deliver to each address every other day, means members of the public can be kept waiting unnecessarily for days or even weeks before receiving crucial letters. One of our contributors, for example, missed an appointment for a cancer test due to the late arrival of a letter from TNT Post, and was then made to wait agonisingly for three weeks to receive the letter with his results. Whilst TNT have not confirmed the reason for this delay, it is clear that if they are handling letters of this importance, mail should only be returned to the depot if there’s absolutely no other alternative.  

Furthermore, operating as private company - free from many of the regulations that bind the Royal Mail - allows TNT to operate on an uneven playing field. TNT are not obliged, like Royal Mail, to provide a universal service: Royal Mail are committed to delivering post up and down the country, six days a week, whether in Sheffield or the Shetland Islands, with a uniform pricing system allowing equal access to its services for everyone in the country. TNT, however, can simply cherry-pick highly profitable areas in which to operate, bidding only to deliver in dense urban areas such as West and Central London. There is a genuine concern amongst organisations such as the Communications Workers Union that this universal service will no longer be possible if private companies undercut Royal Mail for lucrative contracts, as it will leave Royal Mail unable to foot the bill for costlier deliveries in rural areas. Individuals and small businesses will be hardest hit, whilst the winners will be the large organisations that need to send out huge batches of mail.

Unlike Royal Mail, TNT have no obligation to meet the targets set by Ofcom, the independent regulator for the communications industry, so are not required to publish statistics or results on the quality of their service. Security practices were extremely poor at the depot in which I worked, as we delivered mail on bikes with no locks on the panniers containing the letters, leaving the bikes unattended in busy areas for lengthy periods of time whilst we walked large sections of our round. TNT hires temporary staff and students on zero-hour contracts and, whilst most of my colleagues were conscientious and honest, a combination of poor training, low pay and a transient attitude towards the job can only increase the likelihood of postal workers taking shortcuts and dumping mail, a practice that Channel 4’s Dispatches also exposed in this investigation.

Our investigation highlights worrying problems with privatised postal services; not only is our much-valued universal service under threat, but also the quality and integrity of services provided. If, as expected, privatisation continues to be rolled out across the country, the 29 million homes and businesses that rely on the service are entitled to expect better. 

Secrets of Your Missing Mail airs tonight at 8pm on Channel 4. 

A Royal Mail employee at the depot in Rathbone. Photograph: Getty Images

Paul Mills is a freelance journalist and filmmaker. He was the undercover reporter for Channel 4 Dispatches' Secrets of Your Missing Mail. His views are his own and he tweets @pmamills.

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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”