Related Articles
Royal Mail is considering discontinuing second class letter deliveries on Saturdays and reducing the service to alternate weekdays, according to new plans unveiled by regulator Ofcom. First class post will continue to be delivered from Monday to Saturday, while the price of a second class stamp will remain capped at inflation until at least 2029.
These proposals were announced today as part of Ofcom’s review into the future of Royal Mail. The regulator noted that the number of letters being delivered to UK homes has dropped from 20 billion two decades ago, to 6.6 billion currently.
Royal Mail anticipates this figure to decrease further to 4 billion annually in the coming years. Ofcom estimates that reducing the frequency of second class deliveries could save Royal Mail between £250 million and £425 million.
However, the regulator cautioned that these changes alone are “unlikely to be enough” to ensure the long-term financial stability of Royal Mail, and stressed that the company must enhance its service. Over the past 18 months, Royal Mail has been fined over £16 million due to poor performance and failure to meet delivery targets.
Ofcom is proposing to lower the percentage of first class mail that must be delivered the next day from 93% to 90%, and from 98.5% to 95% for second class mail delivered within three days. This would align them more closely with other international and European markets, it added, reports the Mirror.
Ofcom has launched a public consultation on proposed changes to the postal service and expects to issue its final verdict during this summer. Natalie Black, Ofcom’s Group Director for Networks and Communications, commented, “The world has changed – we’re sending a third of the letters we were twenty years ago.”
She went on to say, “We need to reform the postal service to protect its future and ensure it delivers for the whole of the UK. But we’re safeguarding what matters most to people – First Class mail six days a week at the same price throughout the UK, and a price cap on Second Class stamps.”
Royal Mail CEO Emma Gilthorpe remarked, “Ofcom has recognised the urgent need for change so that the future of the Universal Service can be protected for all. Our proposal was developed after speaking to thousands of people across the country and is designed to preserve what matters most for our customers – maintaining a one-price-goes-anywhere service to 32 million UK addresses and First Class deliveries six days a week.
“As Ofcom’s analysis shows, it is no longer financially sustainable to maintain a network built for 20 billion letters when we are now only delivering 6.7 billion. Reform is crucial to support a modern, sustainable, and reliable postal service for our customers, our company and our people.”
