Britain’s postal operator is being relieved of the obligation to deliver second-class letters six days a week, as part of reforms to the service that will also relax its delivery targets.
Regulator Ofcom has announced that from 28 July, it will allow RoyalMail to deliver second-class letters on alternate weekdays, but no longer on Saturdays – but still within three working days of collection.
Ofcom says it is making the change to allow the UK’s universal postal service – guaranteeing delivery to anywhere in the country at a fixed price - “to survive”.
Ofcom points out that, since 2011, Royal Mail has been required under the universal service obligation to deliver first- and second-class letters six days a week. But the number of letters sent each year has more than halved over that time.
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."
Ofcom estimates that changing second-class delivery days could create annual net cost savings of between £250m and £425m, allowing Royal Mail to “invest more in improving its delivery performance".
It will still be required to deliver first-class letters the next working day, Monday to Saturday, and there will continue to be a cap on the price of a second-class stamp.
In another fillip for Royal Mail, though, Ofcom is making its delivery targets less demanding. It will now only have to deliver 90% of first-class mail on the next day, down from 93%. The second-class mail target is being weakened too, from 98.5% to 95% of letters delivered within three days.
Removing Saturday from the roster of delivery days means some letters will take longer to arrive. Ofcom inists these new targets are high by international standards, pointing out that Germany’s three-day target is 95%, Spain’s is 93%, and Norway’s and Poland’s are 85%.
The old targets have certainly proved tricky for Royal Mail – it has been repeatedly fined for missing them, with almost a quarter of first-class mail arriving late in the year to March.
The agenda • 8am BST: ECB member Piero Cipollone lecture on digital euro • 1.30pm BST: US weekly jobless claims
You are receiving this email because you are a subscriber to Business Today. Guardian News & Media Limited - a member of Guardian Media Group PLC. Registered Office: Kings Place, 90 York Way, London, N1 9GU. Registered in England No. 908396
Vienna has been declared a renters’ utopia – and it’s easy to see why 
Time for some straight talking on the cost of clean energy. It isn’t a free lunch