Why it’s time to recognise parcel delivery as the newest essential service

Parcel delivery has been our lockdown lifeline, but it still isn’t working as well as it should

It’s hard to imagine how many of us would get through lockdown without getting parcels delivered. Parcel deliveries have been a lifeline for households to access essential items. They’ve given us gifts from families or friends and helped businesses to stay afloat.

Unlike more established essential services such as water or electricity, the parcel sector isn’t as closely monitored or regulated. This means people aren’t always protected against sharp practices and can find it difficult to fix things if they go wrong. At the start of lockdown, we called on the postal sector to do more to support communities during the Covid-19 crisis. Even though these changes are important, they’re short term measures.

As the watchdog for postal consumers, we want a major review of the parcel sector. The parcel sector should be recognised as the newest essential service. Last year we called on the Competition and Markets Authority (CMA) to review the parcels market to make sure it meets the needs of all consumers.

So far, the CMA hasn’t taken any action — yet the Covid-19 crisis has made a review even more urgent in 3 important ways:

We’re more reliant than ever on the parcels market to deliver the goods we need

Last week, the Office for National Statistics (ONS) released figures revealing how important online shopping and parcel delivery has become.

People in the UK are now spending on average almost £2 billion per week online. This is almost half a billion pounds more than the same time the year before. This huge increase means that online shopping now makes up almost a third (30%) of all retail sales in the UK. Our research backs this up. We found that half of all people (51%) are more reliant on parcel deliveries than before the coronavirus outbreak.

The lockdown measures may have limited our access to the high street. But with deliveries still offering a safe way to access the goods we need, we’re relying on the parcels market more than ever before.

Parcel delivery has become a lifeline for small businesses

Small businesses are utilising parcel delivery services whilst lockdown measures are in place.

As a way of continuing to make sales while lockdown measures are in place, Small businesses are utilising parcel delivery services to stay afloat.

Even though lockdown measures are easing, it’s likely our reliance on parcel delivery will continue in the medium to long term. Some shops have already decided to close all their physical stores and move online, and people may be reluctant to go back to the high street. Research by Royal Mail found 8 in 10 (83%) UK adults said their online shopping activity could continue or even increase when the lockdown is over. It will be an important part of economic recovery.

As the number of parcel deliveries increases, so does the number of delivery problems

In April, just after the start of the lockdown, our research found that more than 1 in 4 people (28%) had a problem with a parcel delivery (such as late delivery or incorrect tracking information) in the last 7 days. In May, as people began to receive more parcels, this rose even higher to 1 in 3 (33%).

We’ve seen problems related to Covid-19 with many unsure how to send essential items to others when they can’t get to a Post Office.

Some of these include people with coronavirus symptoms who felt their only choice was to leave home to pick up parcels that weren’t delivered.

“I had someone else’s parcel left with us before we realised it wasn’t ours. Eventually, I saw [the recipient] outside their house and went to hand it over (at a safe distance), having to leave our house for the first time in six weeks due to self-isolating.”

We know that parcel delivery problems cause stress and anxiety and can be hard to put right. Contact information can be difficult to find, and response times can be slow.

Given these challenges, it’s not surprising we’ve seen a huge increase in traffic to our website. In May, traffic to our advice on how to solve a problem with a parcel delivery increased by over 150% compared to the same time last year.

The parcels sector needs to be treated in the same way as other essential services

Given how critical parcel delivery is to both individual wellbeing and the economy as a whole, now is the time to recognise parcel delivery as the newest essential service.

Essential services have extra consumer protections and minimum standards in place that ensure all consumers, but particularly those in vulnerable circumstances, are protected.

The parcel delivery market has grown so quickly that these protections have not yet been put into place. But, once the immediate crisis is over, an urgent review of the market is needed. The CMA and the government must ensure parcel delivery works for those who need it most.

If you’ve had an issue with sending or receiving a post that you need help to resolve, call our consumer helpline on: 0808 223 1133.