Royal Mail has put forward proposals that would see first-class mail kept as a six-days-a-week service, but second-class letter deliveries cut dramatically
Royal Mail has suggested a plan where first-class mail would still be delivered six days a week, but second-class letters would see a big drop in delivery days.
This is part of their pitch to Ofcom, the regulator who’s thinking about changing the rules for everyone’s post. Let’s take a closer look at what Royal Mail wants to do and why:
What does Royal Mail want to do?
They want to deliver all non-first class letters like second class and lots of business mail, such as bills and statements every other weekday instead of every day. This means no more second-class deliveries on Saturdays.
Under this plan, Royal Mail would bring second-class mail to some streets on Monday, Wednesday and Friday, and other streets would get their letters on Tuesday and Thursday. They’d switch this schedule around every week. First-class letters would still come six days a week, and Royal Mail said they’d keep delivering parcels up to seven days a week.
Why does Royal Mail want to do this?
Royal Mail says this plan could save them up to £300million a year. Right now, it costs them up to £675million every year to deliver everyone’s post. The changes to second-class deliveries might mean they have to let go of up to 1,000 workers, but they hope they can do this by people choosing to leave or moving to different jobs.
What is the universal postal service?
Royal Mail has a duty to deliver letters six days a week to every UK address for the cost of a stamp, according to its universal service obligation (USO). It also has to deliver parcels from Monday to Friday and provide both first-class (next day) and second-class post (within three days).
Why is Ofcom considering changing the service?
The watchdog believes that without changes, the universal service could become “unsustainable”. It pointed out that Brits are now sending half as many letters as they did in 2011, down from 14.3billion to 7.3billion, while receiving many more parcels. Royal Mail agrees that the service needs to change.
The company has been making heavy losses and failed to meet its delivery performance targets, resulting in a £5.6million fine from Ofcom last year. However, the latest suggestions are a step back from its previous calls to scrap all Saturday letter deliveries.
So, what has Ofcom proposed so far?
In January, the regulator suggested two “primary options”, including reducing the number of days that letters are delivered each week. This could mean cutting Royal Mail’s letter delivery service from six days to five, or even three, a week.
The other option was to extend the time it takes for letters to be delivered, meaning it would take three or more days for most letters to arrive, but with a pricier next-day delivery service available if needed. The people in charge have been quick to say that these are just “potential options” and not definite plans.
What can Ofcom do about the service?
Ofcom doesn’t have the power to stop Saturday letter deliveries or to make fewer delivery days. The law says there must be a six-day-a-week service under the Postal Services Act 2011.
So, if they wanted to deliver less often, the Government and Parliament would need to agree. But Royal Mail says it would still deliver first class mail on Saturdays with its ideas. So, it thinks it wouldn’t need a new law to deliver second class mail less often.
How do other countries handle their post?
Ofcom has noticed that the UK isn’t the only place trying to change how it delivers mail because not as many letters are being sent. People use email and social media instead. Countries like Sweden in 2018, Belgium twice since 2020, and Norway and Denmark twice each since 2016 have all made changes. They deliver less often or take longer to deliver letters.
Will it cost more to send things because of these changes?
Ofcom has promised to keep the price of sending second-class letters pegged to the rate of inflation until March 2027. This means the price won’t go up more than the rate of inflation.
But they don’t control the cost of sending first-class mail
The Liberal Democrats have voiced concerns that the changes proposed by Royal Mail “risk creating a cost of postage crisis, as people feel forced to pay for first-class stamps because second-class delivery days are being slashed”.
What’s next?
Ofcom has been discussing these postal reforms since January, with a deadline set for April 3. They’ve expressed a desire for a “national debate” on the future of the postal service and have been hosting events across the UK, like round table discussions with various groups. The regulator plans to provide an update in the summer.
