TV licensing switches over to Royal Mail rival

Last updated at 17:16 06 February 2007


One of the Royal Mail's main competitors has won another lucrative contract to provide postal services, it was announced today.

UK Mail said it had been awarded a deal worth £8.1 million a year by TV Licensing, which administers television licence fees.

The firm, part of the Business Post Group, won a £12 million contract last month from the Department for Work and Pensions to handle 82 million mailings.

UK Mail said substantial savings had been identified during a trial with the BBC last year.

Business Post's chief executive, Guy Buswell, said: "We are delighted to have won this very significant contract, particularly following the award of the major mail contract for the Department for Work and Pensions.

"UK Mail is delighted to be entering into this new agreement with BBC TV Licensing. We envisage a long and highly successful relationship with mutual benefits for both businesses."

Beverley Tew, head of revenue management at BBC TV Licensing, said: "TV Licensing is pleased to be working with UK Mail to provide a cost efficient postal service.

"We are committed to achieving the best value for money and level of service for all TV Licensing operations, which this new contract reflects.

"Collection costs as a percentage of income generated have fallen year-on-year as the operation becomes more effective and efficient at maximising licence fee revenue, and we are focused on continuing this trend."

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