MPs approve legislation to privatise Royal Mail and give staff 10% of shares

Legislation to privatise the Royal Mail and give 10% of shares to employees has been given the green light by MPs.

The Postal Services Bill, which outlines the largest employee share scheme of any privatisation, will now be considered by the House of Lords after being approved by the House of Commons with a government majority of 81.

The bill also proposes the government should relieve Royal Mail of its historic pensions deficit. The organisation will be able to take advantage of private capital, ending the dependance on funding from the taxpayer.

Edward Davey, minister for postal affairs, said: "MPs from all parties have taken a fine tooth comb to our plans and the many hours of rigorous debate have helped improve our legislation. We are convinced our approach is the right one and look forward to the debates which will soon take place in the Lords."

The Postal Services Bill is due to have its first reading in the House of Lords today (January 13).

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