Royal Mail has received approval to implement a significant adjustment to its second class postal service, effective immediately. Ofcom has granted permission for Royal Mail to discontinue Saturday deliveries for second class post. Additionally, the postal service will now only deliver second class mail on alternating weekdays, as opposed to the previous schedule of six days per week.
This change, which is already undergoing testing in select areas following its announcement in January, will not alter Royal Mail’s commitment to ensuring that second class letters reach their destinations within three working days.
Ofcom estimates that by reducing second class deliveries, Royal Mail stands to save between £250 million and £425 million. This decision was influenced not only by cost-saving measures but also by a decline in the volume of letters being sent to households in the UK. The volume has decreased significantly from 20 billion twenty years ago to 6.6 billion presently.
Despite facing fines exceeding £16 million over the past two years for missed delivery targets and subpar performance, Royal Mail will continue to provide first class post deliveries six days a week, from Monday to Saturday.
Natalie Black, Group Director for Networks and Communications at Ofcom, emphasized the necessity of these changes for the benefit of consumers and businesses. She stated that while adjusting Royal Mail’s obligations is crucial, the company must effectively implement these changes to enhance service quality. Ofcom will ensure transparency in communication with customers regarding these alterations and ensure that the benefits are passed on to them.
Martin Seidenberg, the group chief executive of Royal Mail parent company International Distribution Services, expressed optimism about the positive impact of these changes on customers across the UK. He highlighted the importance of adapting the postal service to better meet the evolving needs of customers in the modern mail landscape.
Royal Mail recently raised the prices of first class stamps from £1.65 to £1.70 and standard second class stamps from 85p to 87p in April. This increase marked the sixth time stamp prices have been raised in the past three years. The price hikes for other Royal Mail services, like “Signed For” and “Tracked,” also took effect in April, with the company attributing these adjustments to the decline in letter volumes.
This move towards restructuring the postal service aligns with efforts to ensure a reliable, efficient, and financially sustainable universal service that addresses the changing dynamics of mail usage patterns in the UK.