20 January 2024 , 10:36
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Post arriving on a Saturday could soon be scrapped as part of plans by Ofcom, set to be discussed next week.
Industry regulator Ofcom is set to outline its options to reform Royal Mail. It is understood part of the plans include cancelling deliveries at the weekend. Another option is to copy services in countries such as Germany which deliver mail on alternate days. It comes after Royal Mail was referred to Ofcom last year when MPs accused the firm of failing to deliver letters six days a week.
Last year, a group of MPs from the Business, Energy and Industrial Strategy Committee said the firm has been prioritising over letters and described it as "systematically failing to deliver" on its obligation to deliver letters six days of the week. This week Martin Seidenberg, IDS chief executive, praised "extraordinary efforts" by staff over Christmas but also reiterated his call for "urgent action" regarding its obligation to deliver letters six days a week.
He said: "This has led to a marked improvement in both trading and operational performance for Royal Mail over Christmas, and we have continued to win back customers .We need to build on this momentum.
"With Ofcom due to publish options for the future of the universal service imminently, now is the time for urgent action. We are doing all we can to transform, but it is simply not sustainable to maintain a delivery network built for 20 billion letters when we are now only delivering seven billion.
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Post Office bosses have previously asked the government if they can implement the change to a five day week as the struggling postal network urgently look to reduce its costs. Keith Williams, the non-executive chair of Royal Mail's owner International Distributions Services, said at the time "urgent reform" was needed. He added: "The government has now been approached to seek an early move to five day letter delivery, whilst we continue to improve parcel services."
Simon Thompson, chief executive of Royal Mail, added: "We have always been clear we need change to survive. We have started turning the business around and will do whatever it takes. We would prefer to reach agreement with the Communication Workers Union (CWU) but in any case we are moving ahead with changes to transform our business."
An Ofcom spokesperson said: “Next week we will set out evidence and options on how the universal postal service might need to evolve to more closely meet consumer needs. We will be inviting views on this, not consulting on specific proposals. It would ultimately be for the UK Government and Parliament to determine whether any changes are needed to the minimum requirements of the universal service.”