Royal Mail has received approval to implement significant changes to its second class postal service, effective immediately.
Ofcom has granted permission for Royal Mail to discontinue Saturday deliveries for second class post. Going forward, second class post will only be delivered on alternate weekdays instead of the previous six days a week schedule.
Royal Mail has confirmed that this new delivery scheme is currently being tested in select areas following its announcement earlier this year in January.
Despite the revised service frequency, Royal Mail remains committed to ensuring that second class letters reach their destinations within three working days.
Ofcom estimates that the reduction in second class deliveries could result in cost savings for Royal Mail ranging from £250 million to £425 million. This decision is also influenced by the declining volume of letters being sent to households in the UK, dropping from 20 billion two decades ago to 6.6 billion today.
Royal Mail has faced penalties exceeding £16 million in the past two years for failing to meet delivery targets and exhibiting poor performance. However, the first class post service will continue as usual, with deliveries taking place six days a week from Monday to Saturday.
Natalie Black, Ofcom’s Group Director for Networks and Communications, emphasized that these changes are intended to benefit consumers and businesses by reforming the postal service to ensure its sustainability.
Martin Seidenberg, the group chief executive of Royal Mail’s parent company International Distribution Services, expressed support for the alterations, highlighting the importance of delivering a reliable, efficient, and financially viable universal service that aligns with customer preferences.
These adjustments follow recent price hikes by Royal Mail, including an increase in the cost of first class stamps from £1.65 to £1.70 and standard second class stamps from 85p to 87p in April. The company attributed these price adjustments to the decline in letter volumes.
Furthermore, the prices of additional Royal Mail services like “Signed For” and “Tracked” also saw increments during the same period. Royal Mail justified the price changes by pointing to the decrease in letter deliveries.