New deal extends commercial agreement between Post Office and Royal Mail to 2032

The new deal –  known as the second mails distribution agreement – will start in March and operate “at least” until 2032.

It is the follow-up to an agreement signed in 2012 in readiness for the separation of the two businesses.

The companies say the deal is “good news for customers as it secures long-term access for Royal Mail to the Post Office network, and provides the Post Office with the ability to continue to sell and accept Royal Mail’s range of postal products.

“It also provides greater flexibility for both parties to adapt to the changing ways that customers are buying and sending postal products and to continue to innovate to provide convenience for customers.”

Nick Read, chief executive of the Post Office, said: “This new long-term agreement benefits postmasters and customers, with post offices offering convenient, expert advice when sending parcels and letters to any address in the UK and around the world.”

Stuart Simpson, interim chief executive of Royal Mail, said: “Royal Mail and the Post Office have a long shared history and both companies play an important role keeping the UK connected.

“This new agreement is good for our customers, Royal Mail and the Post Office.

“We look forward to working together to build on our relationship and deliver a great service to our customers for many years to come.”