Three-day-a-week Royal Mail postal delivery proposal sparks outcry

Postal deliveries would be halved to three days a week to slash the “unsustainable” costs of running the service under radical proposals unveiled on Wednesday.

In one of the biggest potential shake-ups of the Royal Mail since postal services began, regulator Ofcom outlined plans that could end the familiar daily visit from the postie.

Ofcom flagged up two main paths for a historic overhaul of the Royal Mail’s hugely expensive “universal service” obligation — which currently guarantees a six-day-a-week delivery service anywhere in the UK — in a bombshell document. The so-called “options for reform” outlined today go far beyond fears that only the Saturday delivery is at risk, something already firmly rejected by Rishi Sunak.

The two main proposals are reducing the number of delivery days to five, or even just three; and scrapping the current “next day” first class service to make way for a delivery service taking “up to three days or longer”. Customers would have to pay more for a premium overnight service delivered by van rather than the morning postal round if they need a letter delivered the next day.

The document added: “We estimate that Royal Mail could achieve a net cost saving of £100 million to £200 million if letter deliveries were reduced to five days; and £400 million to £650 million if reduced to three days. If the large majority of letters were delivered within three days, it could achieve net cost savings of £150 million to £650 million.

Ofcom said: “Given the significant cost to Royal Mail of delivering the universal service, there is an increasing risk it will become financially and operationally unsustainable in the long term.”

The number of letters posted in the UK is in rapid decline, falling from 20 billion in 2011 and seven billion now. Ofcom bosses said the proposed reforms, the subject of a consultation up to Easter, would only bring the UK in line with other European counties such as France, Germany, Norway and Denmark that are also downgrading their universal service delivery requirement.

Both radical options would require primary legislation and the backing of the Government. They would almost certainly prove deeply unpopular with the public and unions.

On Wednesday Post Office minister Kevin Hollinrake insisted that “Saturday deliveries are sacrosanct”.

He told Times Radio: “The Prime Minister has been very clear on this. Six-day delivery is really important for many people in this country, many of our citizens, but also for many of our businesses. We know absolutely that many businesses, particularly those selling magazines for example, rely on that six-day service. Hugely important for the greeting card sector. So that’s absolutely something we want to continue.”