Question

To ask the Secretary of State for Business, Innovation and Skills, whether his Department, its agencies or Ofcom has made an assessment of (a) the appropriateness of the role of local authorities in the creation of addresses for the Postcode Address File and (b) whether that role constitutes a subsidy to Royal Mail.

As set out in the Code of Practice for the Postcode Address File (PAF®), which was agreed between Royal Mail and the Postal Regulator in May 2010, there is a process in place for the creation of addresses which aims to ensure that every business and house in the UK falling under the Royal Mail’s Universal Service Obligation, has a postal address to enable the delivery of items quickly and accurately.

Local Authorities have the responsibility of naming roads and the postal address reflects the details provided by the Local Authorities. Royal Mail applies the postcode to these details which forms the basis of the Royal Mail distribution network. Royal Mail also pays Local Authorities £1 per new address listed in the PAF.

In 2015, the public sector licence agreement was introduced which gives Local Authorities and Central Government, Emergency Services and Health, free access to the PAF.

No assessment has been made of the agreed arrangements in place for the creation of addresses for the PAF.