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Ofcom, Thursday, proposed changes to Royal Mail’s universal service to ensure its sustainability as letter volumes continue to decline.
First Class mail will still be delivered six days a week at a uniform price across the UK, while Second Class letters will be delivered on alternate weekdays, excluding Saturdays, but still within three working days. The price cap on Second Class stamps will also remain in place to keep postal services affordable.
Letter volumes have fallen from 20 billion two decades ago to 6.6 billion today, with projections of 4 billion in the coming years. As a result, delivery costs have risen, contributing to Royal Mail’s financial losses.
Ofcom is also revising delivery targets, reducing the First Class next-day delivery requirement from 93 percent to 90 percent and the Second Class within-three-days target from 98.5 percent to 95 percent. Ofcom has fined Royal Mail over 16 million pounds in 18 months for service failures and will continue to hold it accountable.
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