Royal Mail cuts compensation for lost postDramatic reduction in compensation for 1st and 2nd class post

27 June 2013

Letters being posted through a postbox

Royal Mail has slashed the maximum level of compensation it pays out if post is lost or damaged.

If you are expecting a delivery and your letter or parcel is late or doesn't turn up, your rights vary depending on the type of delivery paid for and the type of compensation you're looking for. 

Use our guide to find out how to complain if your parcel is late or doesn’t turn up.

Royal Mail compensation changes in detail

For standard 1st and 2nd-class letters and parcels (which can cost anything from 50p to £32.40, depending on postage class, size and weight), the maximum amount of compensation you can claim for lost or damaged post has reduced dramatically – from £46 to £20.

Meanwhile, the maximum amount of compensation for lost or damaged 1st and 2nd-class letters and parcels that have been sent by the signed-for service – which can cost anything from £1.60 to £33.50 – has increased from £46 to £50.

Consumers will have to pay first class prices to avoid second class compensation

So if you want access to a higher level of compensation, under the new rules you’ll have to fork out for signed-for delivery. 

Royal Mail said the changes ensure that compensation is proportionate to the service used and postage paid. Compensation levels for postal delays haven’t changed.

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