Royal Mail to stop Saturday second-class letter deliveries
Under reforms due to the decline of postal letters, rising prices and long delays, Royal Mail will shift to delivering second-class letters on alternate weekdays Monday to Friday.
Ofcom, estimated the change, which will come into force from July 28, could save up to £425 million in annual net costs.
• New Royal Mail owner tells workers: We need to be on the same ship
It is hoped Royal Mail will invest the savings in improving its overall delivery performance, although those targets are also being lowered.
First class will drop from 93 per cent to 90 per cent delivered the next day and second class from 98.5 per cent to 95 per cent delivered within three days.
Ofcom has also set new enforceable targets so that 99 per cent of mail has to be delivered no more than two days late.
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.
'As part of this process, we've been listening to concerns about increases in stamp prices. So we've launched a review of affordability and plan to publicly consult on this next year.'
Royal Mail has been required under the universal service obligation to deliver first and second-class letters six days a week since 2011.
Ofcom said the decline in the number of letters being sent had driven the cost of delivering each letter up. The regulator said its research suggested affordability and reliability were more important to people than speed of delivery.
Royal Mail delivered 6.6 billion letters in 2023-24, down from 14.3 billion in 2011-12, a drop of more than half in just over ten years. Revenue from letters has also halved, from £6.9 billion to £3.7 billion. In 2023-24, Royal Mail made a loss of £348 million.
The changes followed public consultation with people and organisations across the country.
First-class letter deliveries will continue on Saturdays. A cap on the price of a second-class stamp will remain.
The government 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.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
3 minutes ago
- The Independent
Rachel Reeves admits Labour has ‘disappointed' people while in government
Rachel Reeves admits Labour has 'disappointed' people while in government. The politician said she understood that being Chancellor meant making unpopular decisions. She told an audience at the Edinburgh Fringe Festival that Labour had got the balance right between tax, spending and borrowing. But she said that balancing the books meant making tough decisions, even if the are unpopular. Appearing on the Iain Dale All Talk fringe show, she said: 'The reason people voted Labour at the last election is they want to change and they were unhappy with the way that the country was being governed. 'They know that we inherited a mess. They know it's not easy to put it right, but people are impatient for change. 'I'm impatient for change as well, but I've also got the job of making sure the sums always add up – and it doesn't always make you popular because you can't do anything you might want to do. You certainly can't do everything straight away, all at once.' Ms Reeves pointed to Labour's £200 million investment in carbon capture in the north east of Scotland, which she said was welcomed by the industry. At the same time, Labour's windfall tax, she said, was not liked by the sector. 'I can understand that that's extra tax that the oil and gas sector are paying, but you can't really have one without the other,' she said. Defending Labour's record, she said her party had the 'balance about right'. 'But of course you're going to disappoint people,' she added. 'No-one wants to pay more taxes. 'Everyone wants more money than public spending – and borrowing is not a free option, because you've got to pay for it. 'I think people know those sort of constraints, but no-one really likes them and I'm the one, I guess, that has to sort the sums up.' Ms Reeves said Labour had to deliver on its general election campaign of change, adding that her party did not 'deserve' to win the next election if it does not deliver the change it promised.
The Sun
4 minutes ago
- The Sun
The top 10 cheapest market towns for first-time buyers revealed – and the most expensive
THE top 10 cheapest market towns for first-time buyers have been revealed. New data from Lloyds Bank shows Leek is the least expensive location to put down roots for those fresh onto the property ladder. First-time buyers in the West Midlands town face paying £191,359 on average. The second-cheapest town in the list, Chesterfield, also based in the Midlands, sees first-time buyers looking at an average price of £198,054. Four other market towns from the region featured in the top 10 list, including Boston, Buxton and Grantham. Prices for first-time buyers in these locations are £211,404, £224,896 and £230,464, respectively. Northallerton, Selby and Driffield, all in Yorkshire and the Humber, appeared in Lloyds' list as well. House prices for those hopping onto the property ladder for the first time are £201,628, £202,092 and £203,160, respectively. Newport, Wales, was eighth least expensive in Lloyds' list - the average house price for first-time buyers there is £227,784. Andrew Asaam, homes director at Lloyds, said the appeal of market towns had stood the test of time with home-buyers. "These charming locations are filled with historic landmarks and architecture, quaint charm and community spirit, offering a calmer pace of life, often within the reaches of bigger towns and cities. "That 'best of both worlds' feeling has led to house prices in these areas holding up - in fact, the priciest market towns are amongst the most expensive locations, outside of Greater London, to settle into a home." The Sun's James Flanders explains how to find the best deal on your mortgage At the other end of the scale, Hitchin came out the most expensive market town for first-time buyers. First-time buyers are looking at an average price of £410,366 for a property in the East of England town. Altrincham, in the North West, was second, with buyers having to cough up £404,864 for a home. West Malling, Hertford, Saffron Walden and Wimborne also feature on Lloyds' list. House prices in these spots average out at £396,925, £392,310, £363,960 and £361,591, respectively. Thatcham was bottom of the most expensive list, but first-time buyers there are still faced with paying £349,602 to get on the ladder. Market town house prices on the rise Data from Lloyds also revealed the 10 locations where house prices for first-time buyers have risen the most since 2020. Newmarket, in the East of England, showed the biggest spike, with prices increasing by 54%, from £225,667 to £347,967, over the last five years. Prices in Goole, Yorkshire and the Humber, have risen by 47%, from £161,966 to £237,810. Macclesfield, in the North West, has also showed high house price growth since 2020, recording a 40% jump from £211,344 to £296,255. Chipping Sodbury, in the South West, saw house prices hop from £209,628 to £278,314 - a 33% hike. Beverley, Yorkshire and the Humber, and Newport in Wales have also seen property price growth of 31% and 30%, respectively since 2020. On average, the 10 market towns where house prices have grown the most since 2020 have seen prices rise by an average of 26%, from £223,061 to £280,582. How to get the best deal on your mortgage IF you're looking for a traditional type of mortgage, getting the best rates depends entirely on what's available at any given time. There are several ways to land the best deal. Usually the larger the deposit you have the lower the rate you can get. If you're remortgaging and your loan-to-value ratio (LTV) has changed, you'll get access to better rates than before. Your LTV will go down if your outstanding mortgage is lower and/or your home's value is higher. A change to your credit score or a better salary could also help you access better rates. And if you're nearing the end of a fixed deal soon it's worth looking for new deals now. You can lock in current deals sometimes up to six months before your current deal ends. Leaving a fixed deal early will usually come with an early exit fee, so you want to avoid this extra cost. But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal - but compare the costs first. To find the best deal use a mortgage comparison tool to see what's available. You can also go to a mortgage broker who can compare a much larger range of deals for you. Some will charge an extra fee but there are plenty who give advice for free and get paid only on commission from the lender. You'll also need to factor in fees for the mortgage, though some have no fees at all. You can add the fee - sometimes more than £1,000 - to the cost of the mortgage, but be aware that means you'll pay interest on it and so will cost more in the long term. You can use a mortgage calculator to see how much you could borrow. Remember you'll have to pass the lender's strict eligibility criteria too, which will include affordability checks and looking at your credit file. You may also need to provide documents such as utility bills, proof of benefits, your last three month's payslips, passports and bank statements.
Telegraph
4 minutes ago
- Telegraph
An insider's guide to DAF, by owners of the quirky Dutch cars
While DAF Trucks have been a market leader for decades, the Dutch company's venture into the car industry was disappointingly brief – only 15 years, to be exact. During that time, about 750,000 cars rolled off the production line in Eindhoven, beginning with the DAF 600 that made its debut at the 1958 Amsterdam motor show. Several incarnations followed, including the most popular 33, 55 and 66 models. Some critics joked that DAFs were driven mainly by elderly ladies and were inconsequential, however such blinkered views failed to acknowledge that, in some respects, the cars were ahead of their time, most notably in their automatic transmission. The company's founders, the Van Doorne Brothers, strived to produce a car accessible to all but with some luxuries associated with more expensive vehicles, such as a self-shifting gearbox. Unheard of in small cars, DAF broke new ground by creating the Variomatic transmission – inspired by a belt-driven lathe in the factory – utilising a pulley/belt system to achieve a stepless, automatic gearchange and deliver optimal engine speed for any driving situation. Ironically, the system's popularity increased after DAF stopped producing cars when Ford and Fiat, among others, fitted a continuously variable transmission (CVT) to their smaller models. DAF's short flirtation with the car industry ended in 1973 when Volvo bought the brand. Several factors contributed to the company quitting the car market, including failure to expand sufficiently to compete with rivals and the founders' conservatism restricting the cars' performance potential. This side of the North Sea, DAF only started making headway in the small vehicle market during its final years; before then, import tariffs had been prohibitive until they were lifted when the UK joined the Common Market in 1973. Today, it's estimated that only about 120 DAFs remain on UK roads. We caught up with three devoted owners to understand the enduring appeal of the quirky Dutch cars. I have a long affinity with DAFs because not only did my mother drive one, but I grew up just down the road from the factory in the Netherlands. Often, I'd cycle to school past the plant and see the works rally cars leave for a competition – they drove them to events back then. I bought my 55 in 1997 for £800 after having my eye on it for ages. When it won our concours, I asked the owner for first refusal if he sold it. Luckily, he did. DAFs rarely come up for sale in the UK, but typically I'd expect a 55 Coupé to sell for around £3,500 to £5,500. However, mine is modified and rally-prepared. Similar modified cars have been offered in Holland for about €20,000 (£17,320). For years they were regarded as 'uncool', yet in recent times people have started to seek them out, precisely for that reason. I increased the power of my 55 by, among other things, upgrading the engine to a 1,397cc Renault engine from a Volvo 340. Power has increased from about 50bhp to an estimated 85bhp, although it's getting tired now. I have completed track days, hillclimbs and taken part in classic tours but nothing competitive these days. Now, I just take it out every fortnight – it's certainly a fun car to drive. While the Variomatic transmission makes them unusual to drive, they have a decent chassis, are cheap to run and enjoy fine handling and precise steering. They allow fast progress, particularly in hilly terrain with lots of curves, and always seem to be in the right gear, allowing me to keep up with more powerful cars. Although lightweight, DAFs are strong where it matters, as in the admittedly rather quirky belt-drive CVT transmission; you can tell it was designed by a truck manufacturer. Earlier variants don't have a differential, the difference in rear-wheel speed around bends being taken up by belt slip. That also gives the effect of a limited-slip differential, making them useful rally cars. The only disadvantages with DAFs are that they rust and parts usually have to be sought in the Netherlands, where the Dutch owners' club has several warehouses full of old stock and newly made parts. I paid £2,500 for my DAF in 2016. When I collected it from Yorkshire, the guy asked where my trailer was, explaining that the car hadn't done more than about 25 miles per year so assumed I would trailer it back to Hertfordshire. So, with no AA membership or radio in the car and only a mobile phone for company, I headed off. The DAF performed perfectly, returning 40-plus mpg on the run home – it never missed a beat. I rebuilt the engine recently and now drive the car almost daily. While we also have a Subaru, which is superbly comfortable and quick, its economy around town is frighteningly low, whereas the DAF returns up to 47mpg. In addition, it's exempt from Ulez (ultra-low emission zone) charges in the capital and, being so small, can squeeze into parking bays that would defeat the Subaru. It has a huge boot, too, so a supermarket trip is no problem either. But wherever we go, we frequently receive hoots from the drivers of DAF trucks. They are the easiest car in the world to drive. You start it in gear, which sounds odd but you get used to it, put your foot down and off you go! One pedal to go, one to stop. The engine revs bear no resemblance to the car's speed and the sensation of the car going progressively quicker, but the engine revs remaining constant, takes some getting used to. Unlike 'normal' [torque converter] automatics, DAFs don't creep forwards on tickover, so you simply bring it to a stop using the footbrake. Although it only has a 750cc engine, the way the transmission works means the car is always in the right gear. Being air-cooled, the engine is a little noisy when driven hard, although on reaching a cruising speed the transmission adjusts and the engine becomes quieter. Drum brakes, meanwhile, are fitted all round on the 33 and need a good shove to make an emergency stop; you have to read the road more than in a modern car. People ask why I drive a DAF and it's quite simple: I came from a DAF family. My late father had a penchant for unusual vehicles and, in the late 1960s, bought a 33 van for his electrical business. So impressed was he with the van that he bought a DAF 66 as our family car, while my grandfather opted for a 55. When I passed my driving test, I asked a dealer to look out for a second-hand 33, which he did, so I drove that for several years, before moving to 'sensible' cars. Fast forward to 2016 and partial retirement from work. Wanting something to tinker with, I found this DAF 33 and the circle is complete. I paid £400 for my 1,108cc aubergine-coloured 66 in 2000. It has 18,000 miles on the clock and, to be honest, I don't drive it enough, although it has made two trips to Holland for major DAF events and been back to its birthplace in Eindhoven. DAFs have good road manners plus excellent suspension similar to the Morris Minor: torsion bars in the front, elliptical leaf springs at the rear. When I bought the car, the Variomatic transmission needed work so I demounted it to replace the vacuum diaphragms, which was a heavy but fairly easy job. Also, I replaced parts of the braking system and gained an MOT less than 24 hours before heading to catch the ferry for a week in Holland. In the days when I taxed the car at the Post Office, I was often asked where I stored my truck; few people recall that DAF also made cars. But I love cars which are a technical tour de force and dared to be different, such as the Citroën DS, NSU Ro80, Tatra 613 and the DAF Variomatic. The DAF was the only one I could afford. The interior of my 66 is unmistakably Giovanni Michelotti [among the 20th century's most inventive sports car designers ], like the BMW 1600 and Triumph Dolomite, where form and function conspire to give simple style and an excellent airy cabin with superb visibility. DAFs are well made and apart from the transmission are fairly mainstream. The Renault 1,108cc engine in the 66 is reliable and easy to maintain, while DAF's home-grown 746cc two-cylinder engine – the only car engine ever made by DAF – in the Daffodil, 32 and 33 required no development over its lifetime and is capable of starship mileages.'
