UK Mail has beaten Royal Mail to take over a £12 million government contract.
Business Post subsidiary UK Mail will handle around 82 million pension statements, winter fuel payment notifications and other items each year for the Department of Work and Pensions.
The department expects to save about £5m in its £70m annual delivery costs
The contract will be use regional distribution centres at Washington in Tyne and Wear and Norcross in Lancashire. UK Mail delivers the mail to Royal Mail’s network of 69 inward mail centres for final delivery.