Royal Mail could be made to pay compensation to hundreds of Watford businesses and residents affected by recent postal chaos.

Watford MP Richard Harrington this week said he would be demanding payouts to any firms or individuals affected by delivery problems being felt across the town.

Services have been severely delayed by a new delivery system, introduced by the postal firm in June, with some complaining that they have not received post for up to five weeks.

The Conservative MP has scheduled emergency talks with managers at the Ascot Road sorting depot after the politician was inundated with complaints from residents.

He said: “The situation is absolutely outrageous. It is causing financial problems and other difficulties for people who are expecting deliveries.

“I’ll be meeting with the managers later this month who have so far have told me that the service is improving and that they are bringing in extra staff.

“They will have some excuse. They think that because they sent a letter out, warning people of possible disruption, it makes it acceptable, but it doesn’t in my view. They are acting like a monopoly. If this was a private business they would be losing customers - the public have got nowhere to go.”

Staff claim that double-figure redundancies at the depot have left postmen unable to complete extra rounds reassigned to them since the cuts.

Royal Mail says it is working hard to resolve the issues and claims that mail is being sent out to homes and businesses every day.

Meanwhile, complaints have come in to the Watford Observer from around the town.

Post room administrator John Scott, at Watford accountancy firm JSA Services, says the situation is the worst he has seen in more than ten years in the job.

On Monday, the company, which provides accountancy services to contractors in and around Watford, received delivery of two sacks of post dating back to August 1.

Mr Scott, 62, said: “This is affecting our business. It causes severe problems for us and the contractors, who need us to sort their finances in a timely fashion.

“The problem has been going on since June – it is not something you expect from a national company.”

Individual complaints have included one woman whose flowers had died by the time they were delivered, while others, who have been expecting important letters have been angered by the delays.

Epilepsy sufferer David Fagg, 52, of Brush Rise, relies on the post for information from hospitals following regular scans and to claim his disability allowance.

He said: “I haven’t had any post for four weeks – it is very frustrating, I’m worried about having my allowance cancelled. “It is absolutely appalling as far as I am concerned. They need to sort it out.”