Regulator to report on potential Royal Mail reforms
Ofcom is expected to publish a document outlining potential options for the future of the delivery company’s universal postal service on Wednesday.
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Ofcom is set to release the findings of its review into the universal service provided by Royal Mail after calls from the firm to ditch Saturday letter deliveries.
The regulator is expected to publish a document outlining potential options for the future of the delivery company’s postal service on Wednesday morning.
It is understood that the review update is not likely to recommend specific proposals but will outline evidence from Royal Mail and potential options to change the service to more closely meet the needs of customers.
Currently, Royal Mail has an obligation to deliver letters six days a week to all 32 million addresses in the UK for the price of a stamp, no matter where the letters are going.
The Prime Minister’s strong view is that Saturday deliveries provide flexibility and convenience that are important for businesses and particularly publishers and the Prime Minister would not countenance seeing Saturday deliveries scrapped
However, Royal Mail’s owner International Distributions Services (IDS) revealed at the end of 2022 that it had formally asked the Government to switch from a six-days-a-week letter delivery service to five, covering Monday to Friday, under its Universal Service agreement.
Royal Mail, which recorded a £419 million loss in its previous financial year, said the current service requirement is “simply not sustainable”.
The group said it would look to maintain a seven-day parcel delivery service.
Earlier this week, Downing Street has appeared to rule out allowing Royal Mail to scrap Saturday deliveries ahead of the review update.
The Prime Minister’s official spokesman said: “Obviously, Ofcom has a role here and is reviewing the future of Royal Mail.
“But the Prime Minister’s strong view is that Saturday deliveries provide flexibility and convenience that are important for businesses and particularly publishers and the Prime Minister would not countenance seeing Saturday deliveries scrapped.
“So I think we’ll see exactly what the outcomes are.
“But given the importance of these deliveries, particularly to businesses, it’s not something we would countenance.”
Ofcom does not have the power to scrap Saturday letter deliveries, with the six-days-a-week service being part of the universal service requirement stipulated by law under the Postal Services Act 2011.
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