Royal Mail may reduce the number of days in a week it delivers letters from six to either five or three, according to a proposal by the regulator Ofcom. Ofcom’s report stated that the postal service is becoming outdated and requires action. Another consideration is expanding the current delivery time for most letters. Royal Mail previously disclosed that its current delivery network is no longer maintainable.
Royal Mail must deliver a universal service by law, which presently involves deliveries six days a week, from Monday to Saturday. However, the volume of posted letters has dropped dramatically in recent years, with only half the number being sent against levels in 2011, while parcel deliveries have become more popular.
Ofcom CEO Dame Melanie Dawes said that the options for reform were being submitted for “national discussion,” with an update anticipated in the summer. She added a warning that service costs will become too high and will become unsustainable if changes are not made.
According to Ofcom’s estimates, the organisation can save £100m to £200m by reducing delivery days to five per week, and £400m to £650m by reducing it to three postal days. Ofcom also notes that reducing the speed of delivery for the majority of letters to three days could save between £150m and £650m, but there would still be a requirement for a next-day service for any emergencies. However, changes to the current laws would be needed for reforming postal services by reducing delivery time.
In the first half of the current financial year, Royal Mail posted a £319m loss. The company is owned by International Distribution Services plc, which has been pushing for immediate reforms since 2020. Royal Mail has previously indicated that it would like to move from delivering mail six days a week to Monday to Friday only. CEO Martin Seidenberg stated that the UK is falling behind in postal service reform and has been calling on the government and Ofcom for a solution to the problem for four years
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