Royal Mail announces big changes to delivery service

By Bill Heaney

Royal Mail has announced big changes to its delivery service starting Monday, July 28.

Second class post will no longer arrive on Saturdays, with Royal Mail also delivering second class mail on alternate weekdays only, rather than six days weekly.

Royal Mail told journalists that this will be trialled in a limited number of locations beginning today, following Ofcom’s initial announcement in January permitting Royal Mail to reduce second class delivery days.
The regulator calculated at the time that cutting second class deliveries would generate savings of between £250million and £425million for Royal Mail.

Beyond cost savings for Royal Mail, Ofcom stated the decision also reflected the decline in letter volumes to UK households.

Letter numbers have dropped from 20 billion two decades ago to 6.6 billion currently.

Royal Mail has faced fines exceeding £16million over the past two years for failing to meet delivery targets and substandard performance.

First class post will continue to be delivered six days weekly, Monday through Saturday.

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.”

Martin Seidenberg, group chief executive of Royal Mail parent firm International Distribution Services, said: “It is good news for customers across the UK as it supports the delivery of a reliable, efficient and financially sustainable universal service.

“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.”

This development follows Royal Mail’s decision to increase the cost of a first class stamp from £1.65 to £1.70 in April, whilst standard second class stamps rose from 85p to 87p.

The price of first class stamps is expected to have a catastrophice impact on the Christmas market for stamps and cards, which could lead to a sales slump and possible even an end to the tradition of send Christmas greetings cards.

The move represented the sixth occasion stamp prices had risen in three years.

The price of additional Royal Mail services – including “Signed For” and “Tracked” – also went up in April.

Royal Mail attributed the price increases to declining letter volumes.

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