![\"PA](\"https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/3d66\/live\/449cba00-6b12-11ef-b43e-6916dcba5cbf.jpg.webp\")
PA Media<\/span><\/div>\n<\/div>\n<\/figure>\nRoyal Mail could be allowed to end the delivery of second class letters on Saturdays, as part of reforms being considered by the regulator.<\/p>\n
Ofcom is also investigating whether to allow second class deliveries to be made on alternate weekdays, which could help cut costs for Royal Mail. <\/p>\n
The regulator has been reviewing the Universal Service Obligation (USO) under which Royal Mail is required by law to deliver letters six days a week and parcels five days a week.<\/p>\n
The number of letters sent through the post has been falling steadily for years while parcels volumes have grown, leading to millions of pounds in <\/b>losses at Royal Mail.<\/p>\n<\/div>\n Royal Mail estimates that reforming second class services, plus changing its performance targets, could save the business \u00a3300m a year. <\/p>\n Lindsey Fussell, Ofcom\u2019s group director for networks and communications, told the BBC’s Today programme the universal service \u201cdoes need to change\u201d.<\/p>\n \u201cTo be clear, no change is not really an option, otherwise it is going to be unsustainable and we\u2019re all going to have to pay a lot more for it,\u201d she said.<\/p>\n Royal Mail’s owner, International Distribution Services (IDS), said that \u201cchange cannot come soon enough\u201d.<\/p>\n It had proposed axing second class mail on Saturdays as well alternate weekday deliveries – both of which options are now being examined by Ofcom.<\/p>\n<\/div>\n In theory, it would mean second class deliveries being made on Monday, Wednesday and Friday one week then Tuesdays and Thursdays the following week. <\/p>\n IDS chief executive Martin Seidenberg said: \u201cThe universal service faces a very real and urgent financial sustainability challenge.”<\/p>\n But Tom MacInnes, interim policy director at Citizens Advice, said that Royal Mail had failed to meet its targets for half a decade, and the USO “clearly doesn\u2019t protect consumers as it should”.<\/p>\n Reforms should not “just be a disguise for cuts that prioritise saving Royal Mail money over providing a good standard of service”, he added.<\/p>\n Ofcom said no final decision had been made and it continues to review the possible changes. It aims to publish a consultation early next year and make a decision in the summer.<\/p>\n Asked why the process was taking so long, Ms Fussell said the national debate had helped the regulator “narrow down to what we think is an option really worth exploring, but we now need to do some really detailed consumer research”.<\/p>\n<\/div>\n Last year, Ofcom fined Royal Mail \u00a35.6m for failing to meet its first and second class delivery targets<\/a>.<\/p>\n Between April and the end of June, Royal Mail delivered less than 80% of first class post on time, missing key targets set by the communications watchdog.<\/p>\n Ms Fussell said: “We\u2019re now looking at whether we can get the universal service back on an even keel in a way that meets people\u2019s needs.”<\/p>\n “But this won\u2019t be a free pass for Royal Mail \u2013 under any scenario, it must invest in its network, become more efficient and improve its service levels.”<\/p>\n<\/div>\n The number of letters being sent in the UK has fallen from a peak of 20 billion a year in 2004-05 to seven billion last year, Royal Mail said.<\/p>\n In contrast, parcel volumes have jumped, especially during the pandemic when lockdowns led millions to shop online. <\/p>\n Royal Mail is also facing increased competition from other parcel delivery companies. <\/p>\n Nick Quinn is 86 years old and lives in Manchester. He says he\u2019s lucky to get mail every three weeks. He is due to receive an urgent letter regarding his rent which he\u2019s still waiting for.<\/p>\n He told BBC News: \u201cOn 1st July my landlord increased my rent. I was told to get off the rent I had and take out another rent agreement. I\u2019m supposed to get a letter regarding this.<\/p>\n “I\u2019m now nearly \u00a32,000 in arrears because I\u2019m not getting the mail that I should get to tell me whether I can object to the increase or not.”<\/p>\n The UK Greeting Card Association said it was concerned that the options outlined by Ofcom “takes us one step closer to the dismantling of a postal service that\u2019s affordable and reliable”.<\/p>\n The association said that cards were the most frequent things that people post. “Any changes to the USO must prioritise the needs of small businesses and consumers – not Royal Mail profitability,\u201d it said.<\/p>\n The Professional Publishers Association said it continued to be concerned about potential changes to second class deliveries, specifically “the impact this will have on publishers of weekly time-sensitive magazines”.<\/p>\n The body which represents trade and magazine publishers, said: “Consumers who subscribe to these services expect reliable delivery, and delays compromise the value of these products.”<\/p>\n<\/div>\n Royal Mail has hiked the price of stamps a number of times <\/a>over the past couple of years. In March, the cost of both first class and second class stamps rose by 10p each, to \u00a31.35 and 85p respectively. <\/p>\n In its last full financial year, Royal Mail’s losses stood at \u00a3348m. <\/p>\n IDS is in the process of being bought by Czech billionaire Daniel Kretinsky for \u00a33.57bn.<\/p>\n Mr Kretinsky has committed in writing to honouring the universal service obligation, but only for five years<\/a>.<\/p>\n‘Urgent challenges’<\/h2>\n<\/p>\n
Fewer letters<\/h2>\n<\/p>\n
Takeover<\/h2>\n<\/p>\n