Royal Mail could cut deliveries down to three days, regulator says

Royal Mail deliveries could be cut in half to three days a week under proposals by the industry regulator which says the current service is ‘unsustainable’.

Ofcom said the postal service ‘must modernise’ and that reform was ‘urgently needed’ as it outlined proposals for an overhaul.

It said options would include cutting the six-day a week service to five days or three. Another would be for it to extend the number of days it takes for letters to be delivered.

However, either option would require the government and parliament to change current laws, with another proposal being to overhaul first and second class and business services.

The watchdog says Royal Mail could make cost savings of up to £650 million if deliveries are reduced to three days.

It said it is clear change is needed due to a sharp decline in letter volumes and rising costs, but it said there would be no relaxation of the company’s delivery targets.

In response to the consultation, the Communication Workers Union (CWU) general secretary, Dave Ward told Sky News: “This report is completely dead in the water.

“The response to the leaked information over the week showed that CWU members, the public and politicians are united against the deliberate, manufactured destruction of the postal service.

“In the ongoing debate, Ofcom now have no credibility whatsoever, and their views are an irrelevance to the discussion that must take place between postal workers, businesses and customers.”

Meanwhile, Ofcom chief executive Dame Melanie Dawes told the broadcaster: “We don’t think that doing nothing is an option.” 

In recent times, the number of letters being posted has dropped significantly, with half the amount being sent now compared to levels back in 2011. In this time, parcel deliveries have become much more popular – as well as more profitable.

On top of this, Royal Mail’s performance has also deteriorated, with customers often not receiving post on time.

The official spokesman for the prime minister said earlier this week Rishi Sunak was not in favour of a relaxation to the six-day delivery commitment.

Mr Sunak was said to hold a ‘strong view’ the current Monday to Saturday deliveries provided ‘flexibility and convenience and were important for businesses’.

Royal Mail has made a case for reform since 2020, saying the Universal Service Obligation (USO) had not been updated since 2011 to reflect modern trends, with letter volumes collapsing from a peak of 20 billion to just seven billion in that time.

It has said previously that it would like to go from delivering six days a week to five, from Monday to Friday only – with a five-day option thought to be the most likely.

The consultation is due to conclude in April.