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- Royal Mail has already urged regulators to let it cut second-class services in half
Fears over the future of second-class Royal Mail deliveries are building amid a proposed £3.5billion takeover of the postal service.
Royal Mail last week said it is ‘minded’ to accept a bid from billionaire Daniel Kretinsky for the 508-year-old organisation.
But campaigners are worried about remarks that suggest the ‘Czech Sphinx’ would be happy with proposed reforms to slash second-class deliveries.
Mr Krenitsky is happy to commit to ‘the continuance of six-day delivery for First Class letters’, according to Royal Mail’s parent company International Distributions Services (IDS) last week.
Royal Mail last week said it is ‘minded’ to accept a bid from billionaire Daniel Kretinsky (pictured)
Under its current owners, Royal Mail has already urged regulators to let it cut its second-class service in half from six-day deliveries to every other weekday (stock image)
It said the bidder has promised to maintain ‘key elements’ of reforms proposed by Royal Mail ‘for a financially sustainable universal service in the future’ – including a one-price-goes-anywhere service for the entire UK.
But this has reignited concerns about what could happen to second-class deliveries.
Under its current owners, Royal Mail has already urged regulators to let it cut its second-class service in half from six-day deliveries to every other weekday.
Its boss has said this would give it a ‘fighting chance’ to boost standards and help it save £300million. But it could also result in almost 1,000 job losses.
Dennis Reed, of Silver Voices, a campaign group for the elderly, said that as deliveries were already so unreliable across the country, relaxing obligations would just make things worse.
‘If they say second class will be three times a week, in reality, it will only come once a week.
‘We are extremely sceptical about any promises being made by the regulator, Royal Mail or by any prospective buyers.’
Elderly people across the country are dependent on the service for hospital appointments and utility bills, especially in remote communities, Mr Reed added.
Small businesses have also said they are also concerned about the affordability of future services.
Last month the cost of a first class standard letter increased 8 per cent to £1.35 while a second-class stamp now costs 85p – the same price of a first class stamp in early 2022.
Mr Krenitsky is happy to commit to ‘the continuance of six-day delivery for First Class letters’ (stock image)
Business minister Kemi Badenoch plans to meet with Mr Krenitsky, a major shareholder in West Ham United and Sainsbury’s
Regulator Ofcom is currently looking at how the troubled postal service’s obligations can be reformed – which could see it allowed to offer a less frequent service.
It is currently legally obligated to deliver letters six days per week, Monday to Saturday, and parcels Monday to Friday.
Ofcom has said it will provide an update on the reforms this summer.
Business minister Kemi Badenoch plans to meet with Mr Krenitsky, a major shareholder in West Ham United and Sainsbury’s, to discuss the takeover soon.
A department for business and trade spokeswoman said: ‘As we have made clear, we have no current plans to change the universal service obligation and any future changes to Royal Mail’s operation will need to take into account the impacts on businesses and vulnerable consumers who rely on this vital service.
‘Ofcom will publish an update on its call for input in the summer and we will consider any advice before responding.’
If the deal goes through, it will be the first time the service falls into foreign hands since it was set up by Henry VIII in 1516.
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