Royal Mail allowed to scrap second-class Saturday deliveries
Under a radical overhaul announced by Ofcom, the postal service will now deliver second-class letters on as few as two days a week as part of an alternate weekday service from July 28.
The regulator said the plans, which would still require letters to be delivered within three working days of collection, could help Royal Mail save between £250m and £425m a year.
Ofcom also said its delivery targets will be reduced.
The announcement comes after Czech billionaire Daniel Kretinsky completed his £3.6bn takeover of Royal Mail, which has already led to the departure of the company's chief executive in recent weeks.
The deal marks the first time the postal service has fallen into foreign ownership in its 500-year history.
Following the latest changes to delivery rules, union leaders warned they were not a solution to 'clear problems on the ground' as Royal Mail struggles to recruit and retain staff.
'Best interest of consumers'
Ofcom's director for networks and communications Natalie Black 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.'
Ms Black also signalled a looming rise in stamp prices: '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.'
However, the postal service will still be required to deliver first-class letters the next working day from Monday to Saturday, and there will continue to be a cap on the price of a second-class stamp.
Dave Ward, general secretary of the CWU union, said: 'These changes are not a 'one-stop solution' for the problems in the postal service – the real culprit behind these issues is Royal Mail's inability to properly recruit and retain staff, which has led to workloads piling up in delivery offices and vital letters being left behind.
'The new owners of Royal Mail must ensure that the culture of mismanagement and inferior pay and conditions for new staff does not continue under their leadership.'
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