Royal Mail hopes to change the rules « Euro Weekly News

ROYAL MAIL could save £225 million (€263 million) annually by axing Saturday deliveries.

The company, which lost £1 billion (€1.17 billion) last year, must deliver letters from Monday to Saturday but has asked repeatedly for a review of the regulations now that fewer letters are sent.

While more people, together with companies and official bodies , communicate online, Royal Mail announced that the cost of a first-class stamp will rise to £1.25 (€1.46) in October, with a book of eight stamps costing £10 (€11.69) for the first time.

“The pressures of higher costs and a challenging economic environment were responsible for the decision,” Royal Mail said.

Although the company would like to see Saturday letter deliveries phased out, it also hopes to step up parcel deliveries to seven days a week to cope with online shopping.

Ofcom, the UK’s communications regulator, which is currently analysing Royal Mail’s obligations, agreed that letters are still essential for those who are unable to access online communications and transactions.

It also admitted that the number of letters sent and received in the last 10 years has fallen by 46 per cent compensated  by greater demand for parcel deliveries.

“The last few years have demonstrated the importance of postal services, but the way people use them is changing, and we expect these trends to continue,” the regulator added.

Ofcom is expected to announce its findings later this year.  These will calculate the cost of the universal service and possible changes but will not be responsible for the ultimate decision on Saturday deliveries.

Last June, Business and Trade minister Kevin Hollinrake rejected Royal Mail requests for a change in the existing postal laws, emphasising the social and economic importance to the public in sending and receiving both letters and parcels.

Meanwhile Martin Seidenberg, now Royal Mail’s chief executive following the exit last August of Simon Thompson after just two years in the role, must recover services while rebuilding relations with unions in the wake of last year’s strikes.