Royal Mail is committed to achieving its letter delivery targets by next May through a £500 million turnaround plan. As part of this effort, the postal company will provide part-time postal workers with the option to work longer hours to enhance its services.
Following an agreement with the Communication Workers Union (CWU), Royal Mail is set to implement a new letter delivery model nationwide next month, resolving a prolonged dispute over second-class post restructuring. The changes will involve discontinuing Saturday second-class deliveries and transitioning to alternate weekdays – three days one week and two days the next.
The company aims to enhance first-class next day delivery to approximately 85% within nine months of implementing the reforms, ultimately reaching the 90% target set by regulator Ofcom within a year. Additionally, Royal Mail plans to achieve a 93% delivery rate for second-class letters in three days within nine months, progressing to a 95% target by May next year.
Royal Mail, under the ownership of Czech billionaire Daniel Kretinsky, was penalized £21 million by Ofcom in October for failing to meet targets, with only 77% of first-class post and 92.5% of second-class post delivered on time in 2024-25. Ofcom adjusted delivery targets for first-class and second-class posts, setting new backstop delivery requirements to ensure 99% of mail is delivered no more than two days late.
The £500 million investment in Royal Mail’s service over the next five years will enable approximately 6,000 part-time postal workers to increase their weekly hours as needed. The investment will be funded by savings resulting from changes to the Universal Service.
Stamp price increases have coincided with missed delivery targets, with the price of a first-class stamp rising to £1.80 and a second-class stamp to 91p. While acknowledging the delays, Daniel Kretinsky emphasized the need for improvement without characterizing the situation as catastrophic.
Royal Mail’s CEO, Alistair Cochrane, expressed determination to enhance service quality, highlighting the company’s plan to elevate performance across the UK with the substantial investment. This initiative aligns with Ofcom’s call for a credible plan supported by investment to drive positive change.
Natalie Black, Ofcom’s group director for infrastructure and connectivity, emphasized the importance of Royal Mail implementing the plan effectively to ensure significant and sustained improvement in performance. Ofcom previously approved Royal Mail’s plan to adjust second-class letter deliveries, beginning with a pilot across 35 delivery offices, with further expansion pending the resolution of disputes with the CWU.
The recent agreement with the CWU, subject to member approval, will extend Universal Service reforms to additional delivery offices, with full network implementation expected by December. Dave Ward, CWU’s general secretary, emphasized the need for tangible actions to address customer service shortcomings at Royal Mail, underscoring the importance of workforce resourcing, input in change deployment, manageable workloads, and issue resolution for postal workers.