Postal company TNT Post has stepped up its challenge of Royal Mail's market monopoly.

The organisation has announced it has started delivering letters and parcels to households and businesses in Liverpool, in a move that has created 500 new jobs in the city. It worked alongside the local council and Job Centre Plus offices to fill the vacancies.

Around 3,000 new positions have been created by TNT Post in just under 24 months and the company stated it planned to increase this by a further 20,000 over the next five years. It now operates in three UK cities, its other locations being Manchester and London.

Chief executive Nick Wells commented: "Liverpool is a great city and we welcome the support received from public sector bodies in helping these jobs target people who may have found it hard to get back in the workplace."

Royal Mail maintained the decision to allow a competitor to offer direct delivery was unfair, given the fact it is still obliged to operate a 'one price goes anywhere' process six days per week.