Royal Mail may soon be permitted to discontinue Saturday deliveries for second-class letters under Ofcom’s proposed plans, including reduced postal delivery targets.
Following a consultation, the regulator has provisionally concluded that scaling back the second-class letter service to alternate weekdays while maintaining six-day-a-week deliveries for first-class mail would still meet postal users’ needs.
Ofcom has also outlined plans to lower Royal Mail’s delivery targets, reducing the next-day delivery rate for first-class mail from 93% to 90% and the three-day delivery rate for second-class mail from 98.5% to 95%.
This move would bring the targets more in line with those in other international and European markets.
Natalie Black, Ofcom’s Group Director for Networks and Communications, stated: “The world has changed we’re sending a third of the letters we were 20 years ago. 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.”
Dave Ward, general secretary of the Communication Workers Union (CWU), said: “The trials that we have agreed with Royal Mail are strictly conditional on the basis that we see a significant improvement in service reliability for customers, as well as terms and conditions for postal workers being improved – including improved attendance patterns, more Saturdays off, agreed long-term job security and the creation of a genuine platform for growing the company.
“Any failure to abide by these conditions will see our support withdrawn.
“This moment is a real test for many groups.
“Ofcom need to step up and allow Royal Mail to build innovation into this proposal that would include bespoke and advanced letter delivery services – the NHS and card industry as examples.
“Our members also want to see the Labour Government take a real oversight and involvement to ensure that a key part of the UK infrastructure is protected.
“The prospective owners of Royal Mail, EP Group, have committed to restoring faith in the UK postal service – we will hold them to this.”
Emma Gilthorpe, chief executive of Royal Mail, said: “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.”
