Royal Mail could be allowed to ditch Saturday deliveries for second class letters under an overhaul of the UK postal service being considered by the industry watchdog.
Regulator Ofcom, which has been consulting on the future of the universal postal service since January, said it is now focusing efforts on changes to the second class service while keeping first-class deliveries six days a week.
Under the plans being considered, second class deliveries would not be made on Saturdays and would only be on alternate weekdays, but delivery times would remain unchanged at up to three working days.
Ofcom said no decision had been made and it continues to review the changes, with aims to publish a consultation in early 2025 and make a decision in the summer of next year.
Royal Mail has urged the Government and Ofcom to review its obligations, arguing that they are no longer workable or cost-effective, given the decline in addressed letter post.
It proposed ditching Saturday deliveries for second class post and cutting the service to every other weekday in its submission to Ofcom in April.
But it comes at a time when Royal Mail is under intense scrutiny, with its owner International Distribution Services (IDS) having agreed a controversial £3.57 billion takeover by Czech billionaire Daniel Kretinsky in May, which is being reviewed by the Government under the National Security and Investment act.
Royal Mail also revealed last month that it once again failed to meet Ofcom targets for deliveries, with less than 80% of first class post on time in the three months to June 30.
Lindsey Fussell, Ofcom’s group director for networks and communications, said: “If we decide to propose changes to the universal service next year, we want to make sure we achieve the best outcome for consumers.
“So we’re now looking at whether we can get the universal service back on an even keel in a way that meets people’s needs.
“But this won’t be a free pass for Royal Mail – under any scenario, it must invest in its network, become more efficient and improve its service levels.”
📮 The UK's postal service needs reform to secure its long-term future.
We'll now assess whether changes to Second Class letter deliveries, while keeping First Class as it is, would meet people's needs – ahead of a consultation next year.
Read more: https://t.co/xe0Vjl1MhD pic.twitter.com/SZ5bz3jZ2M
— Ofcom (@Ofcom) September 5, 2024
The Communication Workers Union (CWU) hit out at Ofcom, claiming the union was being ignored in the debate over the postal reforms.
A CWU spokesman said: “The voices of postal workers, the public and businesses must be heard.
“The absolute priority of the regulator right now should be restoring quality of service, which is currently 13% below the agreed Ofcom targets. Royal Mail has a resourcing and staff retention crisis and we will not allow this to go unreported.”
The Royal Mail’s universal service obligation (USO) stipulates that it must deliver letters six days a week to all 32 million addresses in the UK for the price of a stamp – a requirement stipulated by law under the Postal Services Act 2011.
When Ofcom first said it was considering cutting postal delivery days, it sparked an outcry, with ministers quick to dismiss any suggestion that the Government would sanction the scrapping of Saturday deliveries.
But the current plans being looked at would not need a change in legislation, given Royal Mail would still be delivering first class post six days a week.
Royal Mail said its proposals earlier this year would also save it up to £300 million a year and lead to “fewer than 1,000” voluntary redundancies.
Royal Mail owner IDS insisted “change cannot come soon enough” to the UK’s postal service.
Martin Seidenberg, group chief executive of IDS, said: “Our proposal for the future of the universal service has been developed after speaking to thousands of people across the country, and is designed to protect what matters most for customers.
“It can be achieved through regulatory change with no need for new legislation.
“The universal service faces a very real and urgent financial sustainability challenge.”
