The Regulator Ofcom has said cutting Royal Mail’s six-day a week letter deliveries to five days or three are among options that could be considered
It warned that the universal postal service risks becoming “unsustainable” without reform
Ofcom says that “affordability and reliability” are most important to customers, who would be prepared to trade delivery days and how long letters take
It cited that letter deliveries have halved since 2011 whilst parcel deliveries had increased
The regulator estimated that Royal Mail could achieve a net cost saving of £100m-£200m if letter deliveries were reduced to five days; and £400m-£650m if reduced to three days.
If the large majority of letters were delivered within three days, it could achieve net cost savings of £150m-£650m.
Downgrading delivery targets is not an option for reform. In fact, it will be important to consider whether additional safeguards are necessary to ensure people’s needs are fully met. Any changes must improve existing levels of reliability it adds
Postal workers are part of the fabric of our society and are critical to communities up and down the country. But we’re sending half as many letters as we did in 2011, and receiving many more parcels. The universal service hasn’t changed since then, it’s getting out of date and will become unsustainable if we don’t take action.
“So we’ve set out options for reform so there can be a national discussion about the future of universal post. In the meantime, we’re making sure prices will remain affordable by capping the price of Second Class stamps.” said Dame Melanie Dawes, Ofcom’s Chief Executive
Earlier this week Downing Street made it clear that it wanted to retain Saturday deliveries
