Royal Mail considers ending Saturday letter deliveries as paper post’s popularity declines, following a call for evidence by the postal regulator.
Ofcom, which previously estimated potential annual savings of up to £225m from dropping Saturday delivery and found consumer indifference towards the idea, is initiating a process to adapt services to changing postal user needs.
In a request made last November, Royal Mail cited a 60% decline in letter volumes, dropping from a peak of 20 billion annually in 2004-05 to 7 billion in 2022-23, and urged the government to permit the cessation of Saturday deliveries.
With a £419m loss last year, Royal Mail warns of potential widespread job cuts this year without business restructuring.
Although the government stated in June that there are no current plans to alter Royal Mail’s universal service obligation (USO) introduced during privatisation in 2013, Ofcom recognises substantial changes in consumer demand and is seeking evidence on how the USO can adapt to meet those needs.
Later this year, Ofcom will present detailed evidence, including future options for change and how to smoothly transition to new arrangements.
Calling the USO “outdated and in need of urgent reform,” Royal Mail responded positively to Ofcom’s examination, highlighting the need for collaboration among stakeholders to protect the one-price-goes-anywhere universal service.
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The Communication Workers Union (CWU), critical of Royal Mail’s treatment of staff and engaged in strikes over pay and conditions, stresses the importance of considering employees’ perspectives in any changes to the USO.
According to a union spokesperson, postal workers have witnessed the deliberate erosion of the USO and deteriorating service quality over time. The CWU pledges full participation in the review to protect UK postal services.
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