Royal Mail Group Limited

ROYAL MAIL GROUP LIMITED POSTAL SCHEME

NOTE: [This note is not part of the Scheme]

The Scheme that follows this Note is made under Section 89 of the Postal Services Act 2000 (as amended by the Postal Services Act 2011). This Scheme will come into force on 24th Sept 2012 and provides for delivery to neighbour as well as setting out more clearly what will happen to an item that cannot be successfully delivered first time. This Scheme is made by modifying the SUCCESSOR POSTAL SERVICES COMPANY INLAND LETTER POST SCHEME 2001 (AS AMENDED) by making the changes set out below. A consolidated version of the new Scheme is available on Royal Mail’s website (www.royalmail.com).

THE ROYAL MAIL SCHEME FOR INLAND LETTERS SEPTEMBER 2012 (“SCHEME”)

Publication made………………………….…………..24th August 2012

Coming into operation……………………….……24th September 2012

Royal Mail Group Limiteda by virtue of the powers conferred upon it by Section 89 of the Postal Services Act 2000b and of all other powers enabling it in this behalf, hereby modifies of the SUCCESSOR POSTAL SERVICES COMPANY INLAND LETTER POST SCHEME 2001 (AS AMENDED) by replacing sections of that Scheme with the text set out below to make the ROYAL MAIL SCHEME FOR INLAND LETTERS SEPTEMBER 2012. All other sections of the SUCCESSOR POSTAL SERVICES COMPANY INLAND LETTER POST SCHEME 2001 (AS AMENDED) are translated intact into the new ROYAL MAIL SCHEME FOR INLAND LETTERS SEPTEMBER 2012.

To replace the following section 1 in its entirety with the wording as follows.

1. COMMENCEMENT, REVOCATION AND CITATION

1.1 This Scheme was made under Section 89 of the Postal Services Act 2000 (as amended by Schedule 12 of the Postal Services Act 2011) (“Section 89”). This Scheme is effective from 24th September 2012.

1.2 Under Section 89 a postal operator may make a Postal Scheme in relation to postal services provided by them. However it is a requirement that a postal operator making a Postal Scheme under Section 89 does so in accordance with regulatory obligations which are set out in Section 89A.

1.3 The regulatory obligations as set out in Section 89A have been met and accordingly this is a new Scheme which shall be known as the Royal Mail Scheme for Inland Letters September 2012 (“Scheme”).

To replace the existing section 8 within Part 2, General Conditions with the text set out below

8. DELIVERY INCLUDING UNDELIVERABLE AND RE-POSTED (RETURN TO SENDER) LETTERS

8.1 Royal Mail will attempt to deliver Letters that meet the conditions set out in this Scheme.

8.2 Some Letters require a signature at the point of delivery and some are too large to fit through a letterbox. In these situations someone needs to be present at the address to take delivery of the Letter.

8.2.1 If no one is available Royal Mail may attempt to deliver the Letter to a Neighbour. Please note that Royal Mail will not attempt to deliverc a Letter to a Neighbour if it is a Letter sent by the Special Delivery product or if it is sent using a service covered by this Scheme and is:

8.2.1.1 an electoral Letter or

8.2.1.2 Social Security Post.

8.2.2 If a Neighbour is available to take delivery of the Letter Royal Mail will leave the Letter with that Neighbour and leave a card at the address that the Letter was addressed to. That card will inform the addressee (or their Representative) that a Letter is (or Letters are) being held by a Neighbour for them and provide the address details for that Neighbour and the date and time that the Letter was left with the Neighbour.

8.2.3 If an addressee does not want their items to be delivered to a neighbour or does not want to take items for neighbours they can opt out of the Delivery to Neighbour service, free of charge, by registering their wish to opt out in such a way as Royal Mail may reasonably require from time to time.

8.2.4 If a Neighbour is not available to take delivery of the Letter, or the addressee has opted-out and does not want their items to be delivered to a neighbour or to take items for neighbours, Royal Mail will take the Letter back to the Delivery Office or an alternative location such as a Post Office. Royal Mail will leave a card at the address that the Letter was addressed to.

8.2.5 The card that is left at the address will inform the addressee (or their Representative) that Royal Mail attempted to deliver a Letter or Letters and will offer the addressee (or their Representative one or more of the following opportunities:-

8.2.5.1 to request that the Letter be redelivered to the same address,

8.2.5.2 to request that the Letter be redelivered to an alternative locald address. Please note that this option is not available with Special Delivery Letters, electoral Letters or Social Security Post,

8.2.5.3 to collect the Letter from the Delivery Office or the alternative location such as a Post Office to which the Letter was taken back to,

8.2.5.4 to request that the Letter be sent from the Delivery Office or other location (other than a Post Office) to a Post Office for collection for which a fee may be payable.

8.3 Royal Mail may decide not to deliver a Letter which it considers impracticable or unreasonable to deliver. Such a Letter is referred to in this Scheme as undeliverable. Royal Mail may consider a Letter to be undeliverable if:

8.3.1 following a failed first delivery attempt the addressee has not taken advantage of any of the opportunities set out in 8.2.5, within the advertised time period;

8.3.2 following a first failed delivery attempt, Royal Mail is required by law to return a letter immediately to the Sender (e.g. Royal Mail’s obligations in relation to Social Security Mail);

8.3.3 it is of the opinion that the address is unsafe or insecure or if no delivery point has been provided, or if access to the delivery point has been prevented or impeded;

8.3.4 it is of the opinion that the address to which the Letter is to be delivered is not permanently occupied;

8.3.5 the Letter is not fully and correctly addressed in a manner which includes all the elements of the postal address (including the full postcode), written clearly on the front or on a label securely attached to the front of the cover or envelope (or otherwise in a manner such that the address is clearly visible in its entirety as if it had been written on the front of the Cover or envelope),

8.3.6 it is of the opinion that the health and safety of any individuals may be put at risk; or

8.3.7 it is of the opinion that the address is illegible; or

8.3.8 for any other reason, Royal Mail forms the opinion that it is impracticable or unreasonable to deliver the Letter.

8.4 Where a Letter is undeliverable and:

8.4.1 the Sender’s name and address in the United Kingdom, the Channel Islands of the Isle of Man are legible on the Cover or envelope, Royal Mail may return the Letter to the Sender unopened;

8.4.2 the Letter was originally posted as a Franked Letter or was purchased on account and the Sender’s name and address are (a) not on the Cover or envelope, or (b) they are illegible, or (c) the Sender’s name and address are on the Cover or envelope but the address is outside the United Kingdom, the Channel Islands or the Isle of Man, then the Letter may be dealt with or disposed of at the discretion of Royal Mail;

8.4.3 the Letter was not originally posted as a Franked Letter or purchased on account and the Sender’s name and address are (a) not on the Cover or envelope, or (b) they are illegible, then the Letter may be opened. If the name and address of the Sender are inside, the address is in the United Kingdom, the Channel Islands or Isle of Man, and the Letter does not consist solely of advertising material, newspapers or magazines, then the Letter may be returned to the Sender. Otherwise the Letter may be disposed of at the discretion of Royal Mail.

8.5 Section 8.4 does not apply to an electoral Letter. If such a Letter is undeliverable, Royal Mail may:

8.5.1 if the Sender’s name and address in the United Kingdom, the Channel Islands or the Isle of Man are legible on the Cover or envelope, return it to the Sender unopened; or

8.5.2 if the Sender’s name and address are not on the Cover or envelope, or if the Sender’s address is not in the United Kingdom, the Channel Islands or the Isle of Man, or if they are illegible, the Letter may be dealt with or disposed of at the discretion of Royal Mail.

8.6 Royal Mail will not charge any additional postage or fee for returning an undeliverable Letter but the Sender may have to pay any other fees that apply (such as custom charges or surcharges). If any applicable fee is not paid, the Letter may be dealt with or disposed of at the discretion of Royal Mail.

8.7 Royal Mail may, at its discretion, return a Letter to Sender from the delivery address as a Return to Sender item, if it is re-posted by the Addressee or any other person for any reason and the return address is written correctly and legibly on the Cover or envelope and is an address in the United Kingdom, the Channel Islands or the Isle of Man.

In SCHEDULE 2 Definition of Terms Used in this Scheme

The following variations and amendments to this section are to:

1. Amend the definition of IPS to read;

IPS

Successor Postal Services Company Inland Parcel Post Scheme 2001 as amended or any such new Scheme introduced by Royal Mail Group for the transmission of inland postal packets including The Royal Mail Scheme for Inland Parcels September 2012.

2. Insert definitions for:

Neighbour

for the purposes of delivering items, an appropriate person chosen at the discretion of the delivery officer on the basis of local knowledge and official guidance, who lives within close proximity of the address on the item. They may be a next-door neighbour or someone who lives sufficiently close by.

Representative

A person who acts legitimately, with or without express permission, on behalf of the addressee.

Signed by: Mark Waples for and on behalf of Royal Mail Group Limited

Date: 24th August 2012

a Royal Mail Group Limited (a company registered in England and Wales under number 4138203) has been designated as a universal service provider under paragraph 3(1) of Schedule 9 of the Postal Services Act 2011. Royal Mail Group Limited is the successor postal services company referred to in article 37(1) of the Postal Service Act 2000 (Commencement No.4 and Transitional and Savings Provisions) Order 2001 (2001/1148). Royal Mail Group Limited was formerly known as Royal Mail Group plc and before that Consignia plc

b 2000 c26

c NOTE: Not part of the Scheme. Royal Mail will not attempt to deliver to a neighbour an International Inbound item that requires a signature

d Local in this context means and address covered by the Delivery Office to which the item was returned.