Royal Mail Proposes Three-Day Week for Second Class Letters to Offset Financial Strain

Strategic Overhaul Amid Financial Challenges

Royal Mail’s submission to Ofcom comes at a critical time, with the company reporting a £319 million loss in the first half of the year. The decline in letter sending has been stark, with projections showing volumes could decrease to 4 billion in the next five years from a peak of 20 billion. In response, Royal Mail has called for a relaxation of its universal service obligation (USO) targets, aiming to align its operations more closely with the realities of the digital age and shifting consumer preferences. Under the proposed changes, Royal Mail would also introduce new reliability targets and reduce daily delivery routes, potentially leading to around 1,000 voluntary redundancies.

Regulatory and Public Response

Ofcom’s review of the USO is ongoing, with any changes requiring Parliamentary approval. Royal Mail’s push for reform has ignited a national conversation about the future of postal services in the UK. While some stakeholders express concern over the proposed cutbacks, Royal Mail argues that without these changes, the universal service could become unsustainable. As the consultation process continues, the outcome will likely shape the future of postal services in the UK for years to come.