Ofcom, the UK’s postal regulator, has suggested cutting delivery days from six to three per week due to a decline in the number of letters being posted, which has halved over the past decade. Although parcel deliveries have increased alongside online shopping, Royal Mail, which has been a private business for around 10 years since separating from the Post Office, argues that the one-price-goes-anywhere universal postal service no longer works.
Royal Mail noted that the £319m loss it posted in H1 2021, which it blamed on cyberattacks, industrial action and COVID-19 disruption, indicates the company might be unsustainable unless changes are implemented.
Ofcom’s proposals to restrict deliveries to three days a week could save the company £400-£650m, though businesses across the UK have expressed concern. The cards and publishing industries, two sectors worth billions to the UK economy, rely on the ability to deliver items a minimum of six days a week.
The Communication Workers Union, which represents posties, has also voiced opposition to the plan. Alternatively, Ofcom suggests the speed of delivery should be reduced for most letters to within three days, although there would still need to be a next-day service available for urgent letters
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