Royal Mail gets green light to scrap second class post on Saturdays
From 28 July, Royal Mail will axe the six-days-a-week service for second class letters, but will maintain Monday to Saturday deliveries for first class post.
Ofcom said it would keep the target for second class letters to arrive within three working days despite the changes, which come after a lengthy consultation and aims to 'help the universal service to survive.'
First-class letters will still have to be delivered by the next working day, Monday to Saturday, and a cap will continue on the price of a second-class stamp.
Royal Mail's parent company, International Distribution Services, welcomed the regulator's announcement, stating it was 'good news for customers across the UK'.
Ofcom revealed it had also launched a review of the price of stamps amid concerns over affordability.
The regulator is setting new backstop delivery targets so that 99 per cent of post has to be delivered no more than two days late.
Ofcom said reforms of the Universal Services Obligation reflected changing behaviour of customers, with fewer letters being sent across Britain.
Less than a third of letters are sent now than 20 years ago, and this number is forecast to fall to about a fifth of the letters previously sent.
The regulator said it could end up saving the postal delivery service between £250million and £425million each year.
Natalie Black, Ofcom's group director for networks and communications, said: 'These changes are in the best interests of consumers and businesses, as urgent reform of the postal service is necessary to give it the best chance of survival.
'But changing Royal Mail's obligations alone won't guarantee a better service – the company now has to play its part and implement this effectively.
'We'll be making sure Royal Mail is clear with its customers about what's happening, and passes the benefits of these changes on to them.'
On Thursday, Martin Seidenberg, chief executive of IDS, said the changes followed 'extensive consultation with thousands of people and businesses' to reflect their needs and the 'realities of how customers send and receive mail today'.
But, consumer group Citizens Advice said Royal Mail had a 'woeful track record of failing to meet delivery targets, all the while ramping up postage costs.'
Tom MacInnes, Citizens Advice director of policy, said Ofcom had 'missed a major opportunity to bring about meaningful change.'
He added: 'Pushing ahead with plans to slash services and relax delivery targets in the name of savings won't automatically make letter deliveries more reliable or improve standards.'
The regulator should force Royal Mail to give 'paying customers a service that delivers, Maclnnes said.
Responding to Ofcom's announcement, a government spokesperson said: 'The public expects a well-run postal service, with letters arriving on time across the country without it costing the earth.
'With the way people use postal services having changed, it's right the regulator has looked at this.
'We now need Royal Mail to work with unions and posties to deliver a service that people expect, and this includes maintaining the principle of one price to send a letter anywhere in the UK'.
What is happening at Royal Mail?
Royal Mail has been laden with problems over the years. It has also been loss-making amid dwindling revenue.
In 2019, Royal Mail staff voted overwhelmingly for strike action amid dispute between workers and the firm over job security and terms and conditions of employment.
In May 2023, Royal Mail's boss Simon Thompson stepped down from his role. Last month, Royal Mail's latest boss quit weeks after the postal service fell into foreign hands for the first time in its 509-year history.
In a move that caught the business world by surprise, Emma Gilthorpe left having been appointed chief executive a little over a year ago.
The former Heathrow director has been replaced on an interim basis by chief operating officer Alistair Cochrane.
Czech billionaire Daniel Kretinsky, an energy tycoon nicknamed the 'Czech Sphinx' for his inscrutable approach to his business decisions, swooped on Royal Mail's parent company IDS with a £3.6billion offer last year.
after IDS shareholders backed the deal in May.
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