The bill, which will allow the Royal Mail to benefit from private capital if it is approved, will now considered by the House of Lords.

Business secretary Vince Cable said: "Upon taking office the government realised it had to move swiftly to tackle the challenges facing Royal Mail and the Post Office to ensure the future of the important services they both provide. We’re absolutely determined to secure the future of these two proud institutions."

The bill is central to the planned modernisation of Royal Mail, and will allow it to be sold to private investors, while relieving it of the burden of its eye-watering pensions deficit (which will be transfered to the state).

According to the BIS, the bill will also bring "new commercial disciplines to the business", which appears to be a veiled reference to the detrimental impact of having a heavily unionised workforce on generous public sector contracts.

Several of the major players in postal delivery have expressed intentions to run an end-to-end mailing scheme and privatisation of part or all of the Royal Mail could lead to a bidding war.

The first reading in the House of Lords is scheduled for today (13 January).