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No, it's a free service you sign up for which delivers all the snailmail you get from governments and others to a digital mailbox instead. It's like instant snailmail.
It functions using an app or website instead of email, so you login by verifying your ID and not a password. I think the service is fairly common where I live.
You can also get some receipts via that service.
The service automatically organises all your mail into folders for each sender and separately for receipts and payments. Sender folders wouldn't work well for email because you get email for a lot of people and companies but with this service I have only collected 16 different senders over 3 years.
You can also share your digital mailbox with other people.
It's very convenient and saves time and paper. So I highly recommend checking if anything similar exists where you live.
I don't live in the UK so I don't know if they have anything like it.
No, they send it through the service. Nothing ever gets printed.
The different companies and government organisations do have to support it though.
There are a few different companies that deliver the same service, the biggest (and first?) one is apparently used by almost half of the country's population. Pretty much every service supports all the governmental organisations. Company support varies more.
One of the smaller (not small) service provider is owned by the goverment. I am thinking of switching to that one but I haven't bother yet.
Apparently at least one of the smaller providers supports scanning of all physical mail but I have never had that.