Royal Mail allowed to ditch Second Class Saturday deliveries

This morning, regulator Ofcom has said it is proposing to scrap Second Class letter deliveries on Saturdays and reduce the service to alternate weekdays while lowering Royal Mail’s delivery targets.

In a statement published this morning, titled ‘ Protecting the postal service for the future ,’ Ofcom said Royal Mail’s universal service agreement “urgently needs reform to reflect what people need and protect its future.”

It noted that while many people still rely on post, the way they use the postal system has “changed dramatically.”

The number of letters delivered annually has fallen from 20bn to 6.6bn, which is expected to fall further to 4bn in the next few years.

The regulator noted the declining volume of letters has driven up the average cost of sending a letter. However, it also said its research showed affordability and reliability are now more important to people than the speed of delivery.

Ofcom set to relax Royal Mail targets

The changes have been proposed only a few weeks after the £3.6bn takeover of Royal Mail’s parent company International Distribution Services, by ‘the Czech Sphinx’, billionaire Daniel Kretinsky, was signed off by the government and unions.

As such, to ensure the universal service remains “sustainable and delivers what people need,” Ofcom said it is proposing to allow “Royal Mail to deliver Second Class letters on alternate weekdays – still within three working days of collection – but not on Saturdays.”

It also said it would look to change the company’s target for delivering First Class mail from 93 per cent to 90 per cent for delivered next-day, and 99.5 per cent of First Class letters would have to be delivered within three days.

Natalie Black, Ofcom’s group director for Networks and Communications, said: “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.”

Emma Gilthorpe, chief executive officer 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 32m 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 6.7bn. Reform is crucial to support a modern, sustainable, and reliable postal service for our customers, our company and our people.”