Latest news with #postalreform
The Independent
3 days ago
- Business
- The Independent
What to know about the Royal Mail changes effective from now
Major changes to Royal Mail 's delivery services have commenced, allowing second-class letters to be delivered on alternate weekdays and no longer on Saturdays. Delivery targets for both first and second-class post have been relaxed, though Ofcom has introduced a new enforceable backstop to ensure 99% of mail arrives within two days of the target. Regulator Ofcom states these reforms are crucial for Royal Mail's survival, aiming to cut annual costs by £250 million to £425 million due to declining letter volumes. The changes follow Royal Mail's £348 million loss in 2023-24 and recent fines for poor performance, with a review into stamp prices also planned. While criticised by consumer and business groups, the overhaul comes after Czech billionaire Daniel Kretinsky's EP Group completed its £3.6 billion takeover of Royal Mail owner IDS.
Sky News
10-07-2025
- Business
- Sky News
Royal Mail to scrap second-class post on Saturdays and some weekdays
Why you can trust Sky News Royal Mail is to be allowed to scrap Saturday second-class stamp deliveries, under a series of reforms proposed by the communications regulator. From 28 July, Royal Mail will also be allowed to deliver second-class letters on alternate weekdays, Ofcom said. The post will still be delivered within three working days of collection from Monday to Friday. The proposals had already been raised by Ofcom after a consultation was announced in 2024, and the scale back was proposed early this year. Royal Mail had repeatedly failed to meet the so-called universal service obligation to deliver post within set periods of time. Those delivery targets are now being revised downwards. Rather than having to have 93% of first-class mail delivered the next day, 90% will be legally allowed. 5:01 The target for second-class mail deliveries will be lowered from 98.5% to arrive within three working days to 95%. A review of stamp prices has also been announced by Ofcom, which it said follows concerns raised by "many people and organisations". Consultation will begin next year. It's good news for Royal Mail and its new owner, the Czech billionaire Daniel Kretinsky. Ofcom estimates the changes will bring savings of between £250m and £425m. A welcome change? Unsurprisingly, the company welcomed the announcement. "It is good news for customers across the UK as it supports the delivery of a reliable, efficient and financially sustainable universal service," said Martin Seidenberg, the group chief executive of Royal Mail's parent company, International Distribution Services. "It follows extensive consultation with thousands of people and businesses to ensure that the postal service better reflects their needs and the realities of how customers send and receive mail today," Mr Seidenberg said. Citizens Advice, however, doubted whether services would improve as a result of the changes. "Today, Ofcom missed a major opportunity to bring about meaningful change," said Tom MacInnes the director of policy at Citizens Advice. "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." Acknowledging long delays "where letters have taken weeks to arrive", Ofcom said it set Royal Mail new enforceable targets so 99% of mail has to be delivered no more than two days late. Changing habits Less than a third of letters are sent now than 20 years ago, and is forecast to fall to about a fifth of the letters previously sent. According to Ofcom research, people want reliability and affordability more than speedy delivery. Royal Mail has been loss-making in recent years as revenues fell. In response to Ofcom's changes, 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". Ofcom said it has told Royal Mail to hold regular meetings with consumer bodies and industry groups to hear their experiences implementing the changes.
