Can Royal Mail deliver on letters?

Royal Mail owner Distribution Services (IDS) wants regulator Ofcom to allow it to reduce second-class deliveries to two or three days a week.

That would mean cutting almost 1,000 jobs while saving an annual £300 million (€350.4 million, IDS said.

Ofcom calculated that delivering the existing universal service obligation (USO) costs between £325 million (€379.5 million) and £675 million (€788.2 million) a year. Reducing the number of delivery days could cut costs by up to £650 (€759 million), it predicted.

The Royal Mail suggestion followed consultations with Ofcom on restructuring regulations in light of the declining volume of letters now sent, although IDS emphasised its commitment to continue delivering first-class letters from Monday to Saturday.

This pledge was received with relief by weekend magazine publishers as well as greetings card manufacturers and small businesses who rely on Saturday deliveries in time for celebrations like Easter and Mother’s Day that fall on a Sunday.

Ofcom suggested a series of options for solving Royal Mail’s problems which included reducing the service from six to five or, possibly, three days a week.  Some plans would have involved changing regulations but IDS said its own scheme would not entail legislative changes and called on Ofcom to “take swift action” and introduce reforms by April 2025.

Together with its ”alternate day” plan, IDS said that first-class letters could be delivered via the Royal Mail vans that are used for parcels, while business mail including utility company bills, would become second-class mail delivered within three weekdays instead of two.