As we speak information
2025-01-30 07:27:00
Royal Mail ought to solely ship second class letters each different weekday to “shield” the way forward for the UK’s postal business, the business regulator has proposed.
Ofcom stated the Common Service Obligation (USO) should be reformed as individuals ship fewer letters yearly however stamp costs maintain rising.
The one-price-goes-anywhere USO means Royal Mail has to ship publish six days every week, from Monday to Saturday, and parcels on 5 from Monday to Friday.
Ofcom stated Royal Mail ought to proceed to ship firstclass letters six days every week however second class might be restricted to alternate weekdays and never on Saturdays.
“The world has modified, we’re sending a 3rd of the letters we have been 20 years in the past,” stated Natalie Black, Ofcom’s group director for networks and communications.
“We have to reform the postal service to guard its future and guarantee it delivers for the entire of the UK.”
The variety of letters Royal Mail delivers has fallen from a peak of 20 billion in 2004-05 to six.6 billion final 12 months.
Nevertheless, the value of stamps have continued to rise. Since 2022, Royal Mail has hiked the price of a firstclass stamp 5 occasions from 85p to £1.65.
It has additionally elevated the price of a second class stamp over the identical interval from 66p to 85p.
Ofcom stated making modifications to second class deliveries may save the loss-making Royal Mail between £250m and £425m.
“This might allow it to enhance reliability and redeploy current sources to development areas akin to parcels,” it stated.
Royal Mail’s dad or mum firm is being offered to a enterprise managed by Czech billionaire Daniel Kretinsky in a deal value £3.6bn, after the Labour authorities authorised the deal final 12 months.
The federal government will preserve a “golden share” which implies Mr Kretinsky’s enterprise must get approval for any modifications to Royal Mail’s possession, the situation of its headquarters and its tax residency.
Royal Mail should additionally adhere to the USO, which Mr Kretinsky has pledged he’ll do for “so long as I’m alive”.
